The Trump Administration Just Cut Hundreds of Millions of Dollars from New York’s 1115 Waiver
April 24, 2025 |
Cuts won’t take effect until 2027 – but they could still pinch. Here’s how.
On April 10, 2025, the federal Center for Medicare and Medicaid Services (CMS) sent a letter to state Medicaid directors announcing that it would no longer approve new Designated State Health Program (DSHP) expenditures by states. This obscure administrative change will have a significant impact on New York State’s Medicaid program, cutting off a nearly $1 billion funding stream New York is currently using to address social determinants of health, including homelessness and drug use, as well as critical healthcare workforce shortages across the state. This action by CMS is likely just the first step in a broader renegotiation of New York’s Medicaid program. Over the coming months, we can expect to see more funding cuts and restraints on Medicaid spending.
The following brief describes how New York’s 1115 waiver works and how the Trump administration has sought to cut it.
The Trump Administration Just Cut Hundreds of Millions of Dollars from New York’s 1115 Waiver
April 24, 2025 |
Cuts won’t take effect until 2027 – but they could still pinch. Here’s how.
On April 10, 2025, the federal Center for Medicare and Medicaid Services (CMS) sent a letter to state Medicaid directors announcing that it would no longer approve new Designated State Health Program (DSHP) expenditures by states. This obscure administrative change will have a significant impact on New York State’s Medicaid program, cutting off a nearly $1 billion funding stream New York is currently using to address social determinants of health, including homelessness and drug use, as well as critical healthcare workforce shortages across the state. This action by CMS is likely just the first step in a broader renegotiation of New York’s Medicaid program. Over the coming months, we can expect to see more funding cuts and restraints on Medicaid spending.
The following brief describes how New York’s 1115 waiver works and how the Trump administration has sought to cut it.