A change in the way Medicaid payments to health clinics and outpatient centers in New York state are administered could mean a $65 million loss to health-care providers, Sen. Charles Schumer, D-N.Y., said Wednesday.
The only Oneonta-area agency or facility affected would be Planned Parenthood of South Central New York, which would lose an estimated $487,493, according to figures provided by Schumer.
"It would be truly devastating," said Debra Marcus, the agency's chief executive officer.
The loss in Medicaid payments would amount to about one-sixth of the organization's $3.5 million annual budget, Marcus said.
If the proposed change takes effect, Planned Parenthood would be forced to close clinics and scale back services, she said.
The change in rules would cap Medicaid payments to New York and other states at the Medicare payment amount, which is substantially less than most outpatient facilities currently receive, according to Schumer's office.
Medicaid is a federal health program for people with limited incomes. Medicare is a federal health program for those 65 or older or who meet other criteria. Centers for Medicaid and Medicare Services is the federal agency overseeing the rule change.
The change would also prohibit states from paying more than Medicare pays, as well as eliminate federal funding for some services performed in clinics, such as dialysis, family planning and primary care for children, according to Schumer.
The change was proposed last year, but it wasn't until recently that the scope of the impact was fully understood, Schumer said during a conference call with reporters Wednesday.
Schumer said he is lobbying the Bush administration and CMS to halt the change.
"It's a big, broad-based cut, and I don't think they understood the devastating effect," Schumer said. "They are still studying it."
There is between two weeks and a month to fight the rule change before it takes effect, he said.
Although Planned Parenthood chapters throughout the state are among the agencies and facilities affected, Schumer said, the move appears to not have been political.
The federal government was simply trying to save money, he said.
Marcus agreed with Schumer that the change did not appear to be politically motivated and that the goal was to save money.
"It's hard to imagine that this is what the federal government intended to happen," she said.
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