Not-for-Profits to Face Significant Medicaid Funding Cuts

Governor Andrew Cuomo has released his 30-day amendments to the proposed 2013-14 executive budget, which contain a $120 million dollar cut in Medicaid funds to the NYS Office of People with Developmental Disabilities (OPWDD).

Each state dollar cut would result in $1 cut in federal Medicaid, the total cut to OPWDD. Should the amendment be approved, it will cut $240 million. To handle the reduction, OPWDD Commissioner Courtney Burke has announced that cuts will be borne entirely by the voluntary not-for-profit OPWDD sector in the form of a 6 percent across the board cut in Medicaid reimbursements, effective April 1.

These cuts will have a devastating impact on the voluntary agencies that provide support and services to thousands of individuals with intellectual and other developmental disabilities throughout New York State.

Three such voluntary providers in Otsego County -- the ARC of Otsego, Pathfinder Village, and Springbrook -- collectively provide critical services and supports to over 1,300 individuals with intellectual and other developmental disabilities and employ over 1,500 people.

The proposed 6 percent cuts would result in a $700,000-$800,000 cut for the ARC Otsego, a $300,000 cut for Pathfinder Village, and a $1.2 million cut for Springbrook.