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October 13, 2017

For Immediate Release:

Statement by Bea Grause, President of the Healthcare Association of New York State, Regarding President Trump’s Decision to End CSR Payments

The loss of federal cost-sharing reduction payments (CSRs) will have catastrophic impact on New York’s Essential Plan, and in turn on almost 800,000 New Yorkers between 138% and 200% of the federal poverty level who receive coverage. About $900 million in federal CSR funding flows annually to the state budget to support the Essential Plan.

New York and Minnesota are the only two states that created a state-operated Essential Plan—an option open to all states under the Affordable Care Act (ACA).

The loss of CSR funding, combined with the October 1 implementation of $330 million in federal Medicaid Disproportionate Share Hospital (DSH) payment cuts and the uncertainty of future funding for the Children’s Health Insurance Program (CHIP), places significant financial strain on the state’s budget.

HANYS is aggressively pursuing congressional action to require CSR payments, lift Medicaid DSH cuts, and ensure stable, long-term funding for CHIP. In addition to these compounding threats facing both urban and rural hospitals alike, small community hospitals face payment losses from the Administration’s decision to allow the Medicare Dependent Hospital Program (MDH) and the Medicare Low Volume Payment Adjustment (LV) to expire. We are pursuing congressional reinstatement of these Medicare programs.

TheHealthcare Association of New York State (HANYS) is the only statewide hospital and continuing care association in New York State, representing 500 non-profit and public hospitals, nursing homes, home care agencies, and other healthcare organizations.