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Medicaid Redesign Watch #2: The Impending Threat to the NYC Home Care System

May 1, 2013

This report examines the increased labor costs that will emerge as New York State shifts from a Medicaid fee-for-service system toward a managed care system. The financial pressures are likely to be so intense that employers committed to high job quality for home care workers could be squeezed out of the industry. PHI offers three recommendations that may help these “high-road” employers remain solvent.

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Key Takeaways

The move to Medicaid managed care is profoundly impacting NYC's home care system, as are increasing labor costs.
Challenges include: training home care aides; supervision and employer supports; and managing part-time aides.
PHI recommends accounting for labor costs in managed care rates, dedicated funding, and separate worker insurance.
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