NY A00067

Requires the Department of Health to analyze actual costs reported by federally qualified health centers (FQHCs) over the prior five-year reporting period to establish updated payment rates

Changes the method for calculating FQHC operating cost components starting October 1, 2025, switching from the Medicare Economic Index to the FQHC Market Basket inflator under federal law

Mandates the department to issue updated FQHC payment rates beginning April 1, 2025, and every three years thereafter, reflecting actual costs including staffing, physical plant, technology, telehealth, and infrastructure expenses

Includes a rate floor provision ensuring no facility receives a lower operating cost component or payment rate than what was applied before September 30, 2025

Removes existing statutory caps or ceilings on FQHC payments, provided payments remain eligible for federal financial participation