The State Budget and Rate Increases

The final deal for provider rates showed that significant stakeholder and Legislative pressure on the Governor was effective, even if the final deal does not fully represent our ask. The final Budget deal added $25 million General Fund (GF) in FY 2019-20, and $50 million annually thereafter to the Governor’s May Revise proposal of approximately $200 million annually ($97.5 million in FY 2019-20). That yields a total investment in provider rates of approximately $250 million annually, though those increases have a sunset date of December 31, 2021 which can be extended an additional year if certain conditions apply. These increases are scheduled to begin January 1, 2020.

These increases will largely be distributed across-the-board as an 8.2% increase, but some service codes will see lower increases, and a number of service codes will get no increase under the final deal. While some will clearly be left out, there’s no question that we made progress in pushing the Administration down a more positive path going forward. You can view the services receiving an increase at the following link:  Supplemental Rate Increases