Long Island health centers seek $300 million from state amid federal Medicaid cuts

Operators of Long Island community health centers are pleading with New York State to provide greater funding in this year’s budget as a way to limit the damage from federal cuts to Medicaid, loss of subsidies for the Affordable Care Act and inflation.

The operators of the centers, which provide health care regardless of a patient’s ability to pay, said many New Yorkers are likely to lose health insurance in the coming months because of the federal actions, and the centers need greater funding from the state to meet current and anticipated needs.

Several centers, including Harmony Healthcare Long Island, Sun River Health and Long Island Select Healthcare, along with others statewide, are seeking a commitment of $300 million in funding in the upcoming budget, which by state law must be finalized by April 1.

"Lawmakers have an opportunity right now to turn words into action by making a transformational $300 million investment in community health centers in this year’s budget," said Rose Duhan, president and CEO of Community Health Care Association of New York State, which represents community health centers statewide.

Community health centers are nonprofit organizations that provide primary, preventive, dental and behavioral health services to underserved communities whether or not patients have insurance coverage. Centers provide care to 2.5 million New Yorkers across 900 sites, with 42.3% of their funding coming from Medicaid, according to Duhan's organization.

The need for state funding is dire, said David Nemiroff, president and CEO of Harmony Healthcare Long Island, on Tuesday after speaking at a media event in Garden City to call for more investment from Albany.

"Twenty-five percent of our business is from uninsured patients," said Nemiroff, whose community health center operates six clinics on the Island. "So, those Medicaid rates are really, really important for us."

But considering federal cuts to Medicaid spending included in President Donald Trump’s sprawling budget bill last year, center operators across the region are likely to see an uptick in uninsured patients made ineligible for Medicaid, Nemiroff said.

"It’s a challenge because with Medicaid changes coming, we anticipate that close to 1.5 million New Yorkers could potentially lose their insurance this year," said Aaron Clark, CEO of Long Island Select Healthcare, a community health center operator with five locations on the Island.

Operators said that centers statewide stood to benefit from an "up to $40 million" commitment in last year's finalized budget, but those funds have yet to materialize. The funding, part of an expected windfall of billions from the state taxing of managed care organizations, also known as MCOs, was put in limbo amid Trump's changes to Medicaid, resulting in delays in those funds, officials with the state said.

"Even amid unprecedented volatility driven by Washington Republicans and ongoing uncertainty around federal approvals of the MCO tax, Governor Hochul remains committed to strengthening New York’s health care system and ensuring critical providers have the support they need," Gordon Tepper, Long Island press secretary for the governor’s office, said in a statement.

"That’s why her executive budget includes $1.2 billion in MCO tax investments and builds on the largest Medicaid rate increases in over 20 years," Tepper said.

While pleased the state intends to provide funding, Duhan said it remains to be seen how much will be used for community centers.

"We want to be able to take them at their word and see that funding come through," Duhan said in a phone interview Wednesday.

Duhan added that even the $40 million committed last year was "insufficient" given present needs.

In a statement, Assemb. Michaelle Solages (D-Elmont), said: "The federal Medicaid cuts and eligibility changes don’t just take away healthcare from individuals across the country, but they also threaten our health institutions’ ability to serve us both now and in the long term. We are going to continue advocating for additional funds for community health centers, especially now that we have the extension of the MCO tax netting us [$1 billion] in extra revenue for the state."