NY S04589

Amends Public Health Law to change how Medicaid reimbursement rates for federally qualified health centers (FQHCs) are calculated after September 30, 2025

Requires the Department of Health to analyze actual FQHC costs from the prior five-year reporting period, including scope of services, staffing, physical plant, infrastructure, technology, and telehealth costs

Mandates the department to develop and issue updated payment rates reflecting actual costs beginning April 1, 2025, and every three years thereafter

Applies the federal FQHC Market Basket inflator for annual adjustments instead of the Medicare Economic Index previously used

Protects facilities by ensuring no FQHC can receive a rate lower than what was applied prior to September 30, 2025