New York — Nursing home and other healthcare providers in New York started the new year with a 1% Medicaid payment reduction. 

The cut is an effort to reduce gross Medicaid payments, including federal matching aid, by about $124 million in the current fiscal year and $500 million in the following years. 

The state’s Medicaid program serves more than 75,000 seniors and people with disabilities. More than 100,000 caregivers also work in the program.  

New York nursing home operators recently defeated a potential $246 million Medicaid funding cut following a ruling by a state Supreme Court judge in November. The ruling stopped the state from implementing a new methodology for calculating reimbursement rates.