Coalition Sought 15% Rate Increase for Health Homes

New York care management groups requested budget adjustments to address inflation impacting services for 188,000 patients.

Updated on Oct. 14, 2026 in Nursing Jobs

Bold flat-color editorial illustration showing a stylized stone arch and medical caduceus, representing the state policy request for care management funding. — The New York Health Home Coalition has petitioned the state for a 15% Medicaid reimbursement rate increase to offset rising operational costs. AI Illustration. Upload story photo >

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Should the state increase funding for Medicaid programs to keep pace with inflation?

The New York Health Home Coalition has requested a 15% increase in Medicaid reimbursement rates to stabilize funding for care management agencies. The request aims to address operational costs that have grown significantly while rates remained stagnant.

Why it matters

Stagnant reimbursement rates since 2018 have strained the financial stability of agencies responsible for serving over 188,000 Medicaid patients with complex needs. Advocates argue this increase is necessary to account for cumulative inflation and ensure workers receive fair pay.

The coalition is seeking a 15% increase in reimbursement rates, estimated to cost $29 million, to combat cumulative inflation of over 30% since 2018. The program currently supports 188,000 residents across the state.

The players

New York Health Home Coalition

This advocacy group represents agencies that provide care management services for Medicaid patients with complex health and mental health needs throughout New York.

The details

Agencies and advocates recently traveled to the Capitol to present their case, noting that care management employees were excluded from recent human services inflationary wage increases. The requested funding is intended to cover rising operating costs that have persisted for years without relief.

Reimbursement rates have remained at stagnant levels since 2018.
Advocates held a rally at the Capitol in early October 2026.
The governor is expected to release a budget proposal in early 2027.

Market Landscape

This request highlights a growing disparity in the state's human services funding, as agencies struggle to compete with sectors that received recent inflationary wage adjustments. The coalition's move emphasizes the consolidation of advocacy efforts to secure necessary capital against rising operational costs.

If the state denies the requested increase, patients could face reduced service availability or longer wait times as agencies contend with ongoing financial pressures. Conversely, approval could improve recruitment and retention for care managers, leading to more stable support for vulnerable residents.

The takeaway

Advocacy efforts for state funding often hinge on demonstrating how long-term stagnant rates affect the quality of care for vulnerable populations. Readers should monitor state budget debates closely to see how legislative priorities align with the financial realities of health service providers.

What happens next

The governor is expected to release a comprehensive budget proposal early in 2027 that will clarify the funding trajectory for the requested increases.