Dear Administrator Letter

  • Letter are also available in Portable Document Format (PDF)

March 4, 2022

Dear Administrator:

This letter provides you with information regarding your Personal Care Agency (PCA) and or Consumer Directed Medicaid reimbursement rates effective January 1, 2021 through December 31, 2021. The formula on which these rates have been promulgated in accordance with Title 18, Section 505.14 of the Compilation of Administrative Rules and Regulations.

As has been previously communicated, the first year of the newly revised Home Care Cost Report (which is 2019) will not be used for rate setting purposes in order to give the provider community a year to adjust to the new cost report without having an impact to their rates. More critically, the data collected in the 2019 cost report was substantially flawed and if used, would have resulted in significant variations in 2021 rates.

Therefore, the Department is setting this year´s rates using the methodology set forth in regulations, and holding providers harmless for the unreliable data in the 2019 cost report. This is accomplished through the following:

  • the non-minimum wage related growth from 2019 to 2020 was used as a proxy for growth from 2020 to 2021 (Note: Your 2021 rate was held flat if (1) your 2019 to 2020 rate change was a decrease or (2) annual growth exceeded 25 percent; and
  • the applicable 2021 minimum wage was included ($1.18 for downstate and $.82 for upstate).

The Department´s regulations allow rate appeals to be filled within 90 Days from the date of this letter (see Attachment A). The payment for the initial rates will be made in cycle 2325, check release date March 30, 2022. If you have any questions regarding the above information, please send an email to PersonalCare-Rates@health.ny.gov and Robert Yankowski will respond to your inquiries.

Sincerely,

Laura Rosenthal Director
Bureau of Residential Health Care Reimbursement
Division of Finance and Rate Setting
Office of Health Insurance Program

Attachments: