A proposed federal plan to cut Medicaid payments to health clinics and outpatient centers has been halted, both U.S. senators from New York said Wednesday.
The change in rules would have capped 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 Sen. Charles Schumer's office.
This would have meant a $65 million loss to the state, according to a media release from Schumer.
The only area agency or facility that would have been affected was Planned Parenthood of South Central New York, which would have lost an estimated $487,493, according to figures provided by Schumer.
The loss in Medicaid payments would amount to about one-sixth of the organization's $3.5 million annual budget, Debra Marcus, the agency's chief executive officer, previously said.
Schumer and Sen. Hillary Rodham Clinton announced Wednesday the proposal was halted.
"This is a great victory for thousands of New Yorkers who rely on essential freestanding health clinics for critical health care," Clinton said. "The original regulation was misguided and would have been devastating to the ability of New Yorkers to access needed dental, mental health, family planning and other health services for adults and children."
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.
