Governor Hochul: Community Health Centers Need Medicaid Rate Reform Now!

Letter Urges Critical Rate Adjustments to Support New York's Healthcare Safety Net

In her State of the State address today, Governor Hochul highlighted the importance of keeping New York affordable while addressing social needs and improving health equity and outcomes. But there's a major hole in her plan: affordable primary care!

Community Health Centers in New York State provide high quality care to everyone, regardless of their ability to pay, but the healthcare of the 2.4 million New Yorkers CHCs serve is in jeopardy. CHCs are already being forced to close sites and reduce hours due to extreme financial hardship caused by 25 years of New York State's underinvestment. CHCs are only being reimbursement for their services by the State at a rate of 70 cents on the dollar. This rate is based on service costs from 1999/2000 and hasn't been updated since.

Governor Hochul can protect New Yorkers by reforming decades-old health center reimbursement rates in her budget. Community Health Centers need Medicaid Rate Reform NOW.

Our patients count on us, Governor Hochul. Can we count on you?
Rose Duhan
President & CEO
Community Health Care Association of NYS

Click here for a pdf of the statement.

Letter Urges Critical Rate Adjustments to Support New York's Healthcare Safety Net

(Albany, NY) - The Community Health Care Association of New York State (CHCANYS) issued this letter to Governor Kathy Hochul, urging immediate action to address 25 years of underinvestment in New York's Community Health Centers (CHCs). The letter calls on Governor Hochul to prioritize Community Health Centers in the budget by raising health center Medicaid rates and fixing inequities in the State's telehealth policy.

New York's 900 Community Health Center locations statewide provide high quality, comprehensive care to anyone who walks through their door - regardless of insurance coverage or ability to pay. CHCs currently serve 1 in every 8 New Yorkers - more than 2.4 million patients - and demand for CHC services is rising.

“Unlike hospitals and other healthcare providers, Community Health Centers have gone more than TWO DECADES without a substantive Medicaid rate increase,” said CHCANYS President and CEO Rose Duhan. “The need for quality, affordable care continues to increase and the only way to ensure community health centers will be there to meet that need is to raise the rates!”

Community Health Centers are located in underserved communities from Long Island to Buffalo to Plattsburgh and everywhere in between. In addition to primary care, they provide access to dental care and services, mental health support, and prenatal and pediatric care, plus connections to non-medical/social services like WIC and SNAP, transportation, and housing.

A study by the Urban Institute found that, on average, CHC costs exceed New York's Medicaid rates by 44%. In the current economy, without a rate increase, CHCs are faced with tough choices like cutting hours, reducing staff, or closing their doors altogether. Patients across New York State count on CHCs for care. They want to know they can count on Governor Hochul to include Medicaid Rate Reform in this year's budget.