Kicking off 2020, the Cuomo administration is implementing a 1% cut to Medicaid payments as a way to reduce a ballooning budget gap projected to exceed $6 billion.

From a letter sent to state providers and plans:

The FY 2020 Enacted Budget authorizes the State to implement an across the board (ATB) reduction to Medicaid payments up to $190.2 million State share.  Pursuant to this authority, such payment reductions will apply for dates of service January 1, 2020, through March 31, 2020, and each State Fiscal Year thereafter. All non-exempt Department of Health state funds Medicaid payments will be uniformly reduced by 1%. For services subject to the 1% reduction, all fee-for service payments will receive a decrease to  Medicaid checks and/or Electronic Funds Transfers for dates of services  on or after January 1, 2020.  Conversely, managed care payments to health plans will be reduced through a 1% reduction to premium rates effective January 1, 2020.

Read NY Daily News coverage of the announcement here: Full Article