A coalition of health care trade groups has accused state officials of illegally cutting $352 million in Medicaid funding for nursing homes in New York.
The groups announced a lawsuit Friday that claims many nursing homes could be forced to close or reduce staffing and services for thousands of elderly and disabled New Yorkers due to the Medicaid cuts that took effect in July.
“A cut of this magnitude will directly jeopardize access to quality resident care,” said James Clyne, Jr., President of LeadingAge NY, one of the groups in the lawsuit.
The case involves the formula that state regulators use to calculate reimbursement rates for Medicaid, the health-care program for millions of poor and disabled Americans jointly funded by state and federal government.
The trade groups asserted state Health Commissioner Dr. Howard Zucker and the Department of Health targeted Medicaid reimbursement rate reductions that unfairly harm nursing homes statewide.
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