Stakeholders get parity bill passed in NY

• Unanimous legislative approval: The New York Senate and State Assembly unanimously passed legislation (S1616/A2520) requiring Medicaid managed care organizations (MCOs) to reimburse durable medical equipment (DME) providers at no less than 100% of the state’s Medicaid fee schedule.

• Ensuring access and fairness: The bill aims to establish rate parity across MCOs, ensuring consistent reimbursement for DME services and preventing disparities that could hinder patient access to essential medical equipment.

• Awaiting governor’s signature: With strong advocacy from organizations like NEMEP and AAHomecare, the bill now awaits Gov. Kathy Hochul’s signature by Dec. 31 to become law, potentially safeguarding care access and supporting local health care businesses.

ALBANY, N.Y. – The New York Senate passed long-sought Medicaid rate floor legislation, S1616, with a unanimous vote on June 12, AAHomecare and the Northeast Medical Equipment Providers (NEMEP) report. 

Earlier in the week, the State Assembly affirmed companion legislation, A2520, also by a unanimous vote. 

The legislation requires Medicaid managed care organizations (MCOs) to reimburse DME providers at no less than 100% of the state’s established Medicaid durable medical equipment and complex rehab technology fee schedule.  

“By providing parity, this will ensure access when beneficiaries transfer from one MCO plan to another and prevent multiple reimbursement rates for the same item and service,” said John Quinlan, president of Quinlan’s Home Medical and chairman of NEMEP. “Setting rate parity will help protect access to care for NY Medicaid beneficiaries and support NY businesses who provide these valuable services.” 

Currently, some MCOs reimburse DME providers at less than half of the Medicaid fee-for-service fee schedule for identical devices and supplies, the associations say. 

New York Gov. Kathy Hochul has until Dec. 31 to sign the measure into law. 

“NEMEP, AAHomecare, VGM and other stakeholders advocated tirelessly for fair reimbursement that allows us to better support patients and reduce the time they spend in clinical or institutional settings,” Quinlan said. “These sustained efforts ultimately paid off with unanimous support for rate floor legislation in both the Assembly and the Senate.”