Federal Medical Assistance Percentage (FMAP) Reductions

The 2010-11 Enacted Budget includes legislation (Chapter 313 of the Laws of 2010) to establish the Federal Medicaid Assistance Percentages (FMAP) contingency fund to ensure that the State's Financial Plan remains in balance. The "FMAP Contingency Allocation Plan" requires the Office of Mental Health (OMH) to reduce individual payments by 1.1 percent for the period between September 16, 2010 and March 31, 2011. The uniform reductions apply to both Medicaid and State Aid payments. Note: The 2011-12 Budget continues this 1.1 percent reduction.

Update: Concerns expressed by the Centers for Medicare and Medicaid Services have resulted in a determination that the FMAP contingency reduction will be made only to applicable claims paid on or after September 16, 2010 with dates of services commencing on or after September 16, 2010. As a result, monies collected on claims with a date of service prior to September 16 but paid after that date will be refunded.

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• Update to NYS Department of Health (DOH) Medicaid Payment Reductions (Posted to DOH 2/9/11)
  Update issued by the NYS Department of Health (DOH) regarding provider restoration payments.
• Update to NYS Department of Health (DOH) Medicaid Payment Reductions (Posted to DOH 1/31/11)
  Update issued by the NYS Department of Health (DOH) regarding dates of service.
• NYS Department of Health (DOH) Medicaid Payment Reductions
  Guidance issued by the NYS Department of Health (DOH) on the reductions to the enhanced FMAP.
• NYS Division of the Budget (DOB): Budget Bulletin B-1191
  The NYS Division of the Budget (DOB) issued Budget Bulletin B-1191 for guidance on the FMAP Contingency Allocation Plan.
• OMH Direct Contract Notification of 1.1% FMAP Reduction (Letter sent 9/29/10) (PDF)
  Explains changes to the direct contracting requirements based on a revised Budget Bulletin B-1191 and provides for formal notification of payment reductions.
• OMH Notification of 1.1% FMAP Reduction (Letter sent 9/23/10) (PDF)
  Explains the mechanics of the enhanced FMAP Contingency Allocation Plan based on Budget Bulletin B-1191, issued by the NYS Division of the Budget (DOB).
• OMH Initial Guidance on FMAP Plan (Letter sent 8/31/10) (PDF)
  Provides initial guidance on the FMAP legislation, which passed as part of the 2010-11 Budget.
• New York State Finance Law: Chapter 313 of the Laws of 2010 (PDF)
  Establishes the FMAP Contingency Fund to institute uniform reductions to ensure that the State establishes a balanced budget.

Contact us:
This site is designed to be a reference guide to the 2010-11 Federal Medicaid Assistance Percentages (FMAP) "Contingency Allocation Plan". Any further questions regarding the guidance material or the FMAP reductions can be sent to the CBFM mailbox.