Bill > S04589

This bill amends public health law to adjust how payment rates for federally qualified health centers (FQHCs) are calculated, ensuring they reflect actual operating costs. For periods up to September 30, 2026, the operating cost component of these rates will be based on the previous period's costs, increased by the percentage change in the Medicare Economic Index, a measure of healthcare inflation. After September 30, 2026, the operating cost component will be calculated using a new method consistent with specific payment rate regulations, and then annually adjusted by the FQHC Market Basket inflator, a federal measure of cost changes for these centers, with a guarantee that no facility's operating cost component will fall below the rate in effect before September 30, 2026. Additionally, the bill mandates that the state department analyze actual FQHC costs over the past five years, considering factors like the scope of services, staffing needs, facility and technology costs, and other necessary expenses, to develop updated payment rates starting April 1, 2026, and every three years thereafter, ensuring these rates are not lower than those in effect prior to September 30, 2026, and remain eligible for federal funding.

Budget and Finance, Health and Social Services

https://www.nysenate.gov/legislation/bills/2025/S4589