Nursing homes and other healthcare providers in New York woke up to a 1% Medicaid payment cut in the New Year. 

The Cuomo administration trimmed Medicaid payments in an effort to help plug a budget hole, which is expected to exceed $6 billion. The move, which is not reported to make a significant dent in the deficit, will reduce gross Medicaid payments, including federal matching aid, by around $125 million in the current fiscal year and about $500 million in following years. 

The Health Department also may revise reimbursements to the Medicaid-supported Consumer-Directed Personal Assistance Program, which allows the elderly and people with disabilities and chronic illnesses to receive care in their homes by a person of their own choosing, such as a friend or relative. 

Over 100,00 caregivers work in the program, and it serves over 75,000 seniors and disabled New Yorkers.