NY A02089

Requires Medicaid managed care reimbursement rates for essential safety net hospitals to be set at no less than regional average commercial rates for health care services in the same geographic region, subject to federal approval

Defines essential safety net hospitals as those with at least 36% Medicaid/uninsured inpatient and outpatient volumes and no more than 20% commercially insured inpatients, plus public hospitals, children's hospitals with over 50% Medicaid discharges, and DPT-eligible facilities

Excludes state-operated public hospitals, critical access hospitals, sole community hospitals, and specialty hospitals from the essential safety net designation

Mandates managed care organizations provide quarterly written certification of compliance with payment requirements, and requires qualifying hospitals to submit annual reports demonstrating improved patient access, quality, experience, and maternal health efforts

Requires the commissioner to report to the governor and legislature by September 1, 2025 on the feasibility of obtaining a state plan amendment to modify Medicaid fee-for-service rates accordingly; takes effect July 1, 2025