View Full Version : NY State defends highest cost in nation for mentally disabled


Laura
11-15-2010, 02:15 PM
from the Poughkeepsie Journal:
http://www.poughkeepsiejournal.com/article/20101101/NEWS01/11010327/State-defends-highest-cost-in-nation-for-mentally-disabled
State defends highest cost in nation for mentally disabled
Mary Beth Pfeiffer • Poughkeepsie Journal • November 1, 2010
New York state's highest-in-the-nation Medicaid reimbursement rate for the mentally disabled is legal and justified, officials argue in papers submitted to the federal government — and, moreover, they told the Poughkeepsie Journal, it should be even higher.



The federal government had asked the state to justify its $4,556 per-person daily rate at nine state institutions as "reasonable" in response to revelations in June in the Journal. The rate, paid half each by the state and federal governments, is four times higher than any other nationwide and about four times the actual cost of care.
Nonetheless, in releasing documents that have been turned over to federal Medicaid officials in support of the rate, officials of the Office for People With Developmental Disabilities also revealed that they are seeking to increase it — though they would not say by how much. The rate, which is set by the state, went up about 10 percent in each of the past two years and is more than tenfold what it was in 1990.
The institutions include the former Wassaic Developmental Center in eastern Dutchess County, which is now called the Wassaic campus of the Taconic Developmental Disabilities Service Office.
The state's argument in support of the rate was made by Health Department Medicaid Director Donna Frescatore in a nine-page letter that notes pointedly that the rate-setting formula was approved at every step by the federal Centers for Medicare & Medicaid Services. Fifteen pages of rate calculations, institutional payments and "cost-finding worksheets" were also provided to make the state's case, which contends that the money has helped pioneer a successful system of community care of the disabled and pays for other services beyond institutional care.
"Over the years, (the state) has submitted and received approval from CMS on over 35 State Plan Amendments related to this methodology," Frescatore wrote in a letter released by the developmental disabilities agency, which runs the institutions.