Governor Vetoes Bill Restoring Bed Hold Cut

Lauren Pollow in Legislative

As you are aware, NYSHFA/NYSCAL has been advocating for the passage of legislation in response to the repeal of the State’s Medicaid reserved day reimbursement for skilled nursing facilities. On December 18, 2017, the Governor made the decision to veto this bill. Please see below for details and next steps resulting from this decision:

Governor Vetoes Bill Restoring Bed Hold Cut

As part of the 2017-18 Enacted Budget, the Governor repealed the State’s Medicaid reserved bed day reimbursement (“bed hold”) to skilled nursing facilities, with a goal of saving $18 million annually. Once implemented, skilled nursing facilities with 95% census or higher would no longer receive 50% Medicaid payment for holding a resident’s bed for a hospitalization, but would still be required to hold the bed for 14 days annually (therapeutic leave of absence not impacted by the state budget and amended Public Health Law).

In response to advocacy efforts from NYSHFA/NYSCAL and our partner associations, the Department of Health (DOH) issued a Dear Administrator Letter (DAL) on May 13, 2017 advising providers that the implementation of the amended law would be delayed until there are corresponding regulations that can be enacted.

Following the DAL, a bill was introduced in early June and passed unanimously in both houses to fully restore the 2017-18 Budget bed hold cuts by way of legislation. A.8338 (Gottfried)/S.6559 (Hannon) was delivered to the Governor on December 6th, 2017.

On December 18, 2017, the Governor vetoed the bill, which would have restored the bed hold cuts removed by the 2017-18 Budget. In his veto message (#238) the Governor stated that while he supports the objective of the bill, it is not supported by an “identifiable funding source” and as such, stated that the issue must be addressed in the context of the annual budget negotiations. NYSHFA/NYSCAL will continue to push for this legislation to be included in the upcoming budget and will stay opposed to the Governor’s proposed requirement that providers must hold the same room, same bed for 14 days with no payment. We thank our many members that acted and contacted the Governor’s office on this issue. NYSHFA/NYSCAL has several avenues to pursue legislative action that will resolve the issue or reach a compromise during the 2018 session.

Veto message can be viewed here.


Lauren Pollow
Director, Government Affairs
518-462-4800 x25