June 24, 2020

New York State Medicaid Program Cuts Taxi/Livery Rates

In a February 2020 Medicaid Redesign Team II (“MRT II”) meeting, it was determined that Medicaid transportation may need “course correction” due to a dramatic increase in taxi/livery services.  See New York Medicaid Redesign Team II at slide 44 .  Since 2011, total Medicaid transportation spending has increased by nearly 131% and taxi/livery spending specifically has increased by nearly 800%.  Id. at slide 50

In an effort to increase access for non-emergency Medicaid transportation, a proposal was set forth to reduce taxi/livery rates and promote other modes of transportation that are more reflective of the market rate for transportation services.  See MRT II Executive Summary of Proposals at 14.  This eventually led to an enactment under the 2020-2021 State Budget and MRT II Initiative to decrease the Medicaid taxi/livery base and mileage fees by 7.5% throughout New York State effective June 1, 2020.  See Medicaid Update, May 2020 at 4.

For more detailed information on updated fees, please see “Fee Schedule” under “Transportation Manual” on eMedNY

For other information regarding updates to non-medical transportation of children, please see “Non-Medical Transportation (NMT) Children’s HCBS Manual” under “Transportation Manual” on eMedNY.

Jessica N. Haller, Law Clerk, contributed to this article. If you have any questions about this article or Medicaid transportation services generally, please contact David R. Ross, Esq., Senior Shareholder, via e-mail at dross@oalaw.com.