New York’s Community Health Centers Tell New York State to #RaisetheRate After New Report Reveals Medicaid Reimburses Just 70% of Cost of Care

The Community Health Care Association of New York State is demanding that state leaders raise the state Medicaid reimbursement rate for community health centers statewide, following a new report from The Urban Institute which finds that health centers are only reimbursed 70% of the cost of care. The Urban Institute report concludes that “strategic investment in New York’s community health centers through the Medicaid program should start with closing the gap between Medicaid payment rates and the costs of delivering services. This will enable centers to expand and strengthen access to comprehensive, high-quality, and culturally effective care in the state’s under-resourced communities and help New York achieve its health equity goals.”

To accomplish this, CHCANYS is urging the passage of legislation that would direct the New York State Department of Health to analyze health center costs and create new, sustainable Medicaid rates that are informed by stakeholder input, account for increased cost pressures and changes to the CHC care model, and are adjusted annually using an updated trend factor.

“With each new health crisis we face, the state’s dependence on Community Health Centers increases – but health center funding is based on what it cost to treat a patient back in 1999. Health centers are the linchpin of the health care safety net and without them, their patients might not have access to care. We are asking that health center funding levels are adjusted to keep pace with inflation and reflect care delivery in the 21^st century,” said CHCANYS President and CEO Rose Duhan. “On behalf of Community Health Centers across the state, CHCANYS implores New York’s leaders to provide CHCs the funding they need and deserve.”

“New York’s health centers provide vital health services in our communities,” said Dr. Neil Calman, CEO of the Institute for Family Health and Chair of the CHCANYS Policy Committee. “To continue to fulfill our promise to care for all patients who come through our doors, we need payments from Medicaid to reflect the true cost of the services we provide.”

Community Health Centers in New York State provide comprehensive primary care, behavioral health care, and dental and vision services to 2.3 million patients statewide who likely would not have access to care otherwise. They are governed by patients, hire from their communities, and provide culturally competent care at more than 800 locations statewide.

New York State’s community health centers are instrumental in guaranteeing healthcare equity, even though Medicaid only covers 70% of the costs. That’s why we are urging lawmakers to pass A.7560 (Paulin) / S.6959 (Rivera) and tell New York to #RaiseTheRate to ensure community health centers’ survival.

About the Institute for Family Health

The Institute for Family Health is a federally qualified health center network in New York State serving 100,000 patients annually. Services are available to people of all ages, regardless of ability to pay. 

About CHCANYS

The Community Health Care Association of New York State is New York’s Primary Care Association, a membership organization representing New York’s 70-plus Community Health Centers.

CHCANYS provides training and technical assistance to New York’s CHCs in areas including clinical quality improvement, emergency management, data and technology, workforce development, and compliance and operations. CHCANYS also supports CHCs through policy and advocacy work, strengthening and focusing health center voices at the local, state, and federal levels.