New York State Association of Health Care Providers, Inc.
Contact: Laura Ehrich
518.463.1118 and ehrich@nyshcp.org
Downloadable version: HCP Press Release State Budget Crisis 4.3.25
4.3.2025: UPDATED FOR IMMEDIATE RELEASE
New York’s Home Care Crisis: Licensed Agencies Urge Lawmakers to Take Immediate Action
Albany, NY – The New York State Association of Health Care Providers, Inc. (HCP) has issued an urgent open letter to Governor Kathy Hochul and the New York State Legislature, calling for immediate action to address the growing crisis in New York’s home care system.
In the midst of significant upheaval in home- and community-based services in New York State and a rising demand for these services, Licensed Home Care Services Agencies (LHCSAs) have begun to receive Medicaid reimbursement cuts. These cuts affect the funding that supports wages and benefits for health care workers and ensures continuity of care for the elderly and disabled in New York State.
Agencies were already struggling to recruit and retain home care workers as operational costs soar beyond reimbursement rates. Recent changes in New York’s home care delivery system have disrupted the entire network, creating a ripple effect that jeopardizes care for thousands of vulnerable residents. Without immediate intervention, thousands of vulnerable New Yorkers risk losing access to essential care.
HCP is calling on state lawmakers to take the following urgent steps in the state budget:
- Allocate $150 million from the Managed Care Organization (MCO) tax to support home- and community-based care.
- Pass A1112 (Paulin) / S3599 (Rivera) to improve reimbursement rates for home care services by setting a regional minimum base rate and defining rate components to cover care, operations, and administrative costs. It also mandates annual rate adjustments based on a transparent trend factor and requires the Department of Health to implement accountability measures and publish related data.
- Join the Senate in rejecting the cap on the Nursing Home Transition and Diversion Medicaid Waiver program.
“The number of people needing care has not changed, but the way care is delivered has been upended,” said Laura Ehrich, Vice President of Public Policy with the Association. “Without immediate legislative action, agencies will be unable to meet demand, and New Yorkers who rely on home care will be left without options.”
HCP’s letter warns that continued financial strain on LHCSAs will only exacerbate New York’s long-standing imbalance in long-term care policy, which has historically favored institutional settings over home- and community-based care. The consequences of inaction will be devastating for hundreds of thousands of New Yorkers who rely on these services to maintain their dignity and independence.
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About HCP: The New York State Association of Health Care Providers, Inc. (HCP) is a leading advocate for the home care industry, shaping its future through advocacy, information, and education. Committed to setting high standards for quality and cost-effective care, HCP influences the future of the home care industry and leads the industry in adapting, evolving, and thriving in a changing health care environment