What's happening
The bill increases Medicaid reimbursement rates for private duty nursing services by set amounts starting July 1, 2026.
Why it matters
Addresses workforce shortages. By increasing Medicaid reimbursement rates for private duty nursing, the bill aims to make these services more financially sustainable for providers, potentially helping to attract and retain nurses in a field facing severe staffing challenges.
Improves care for medically complex patients. Higher reimbursement rates may translate into better access to skilled nursing for children and adults with significant medical needs who rely on private duty nurses to remain at home rather than in institutions.
Long-term financial commitment. The legislation sets out a multi-year funding increase, signaling the state’s ongoing prioritization of home-based care and making it easier for providers to plan and invest in resources for patients.
Potential to reduce institutionalization costs. By supporting more robust in-home care, the bill could help keep patients out of hospitals or long-term care facilities, which may ultimately lower overall Medicaid expenditures and improve patient quality of life.
Albany, before your first meeting.
Every bill that moved yesterday, summarized in a sentence and ranked by impact. The Albany Scorecard follows on Sundays.
Free. Unsubscribe in one click. Want alerts on specific bills? Create an account.
Who cares
Private duty nurses
The bill would increase Medicaid payment rates for their eligible care and services, with aggregate increases capped at $15 million for July 1, 2026, through March 31, 2027, and $20 million annually thereafter.
Medicaid recipients receiving private duty nursing
The increase would apply to reimbursement for the nursing care and services they receive that otherwise qualify for Medicaid coverage.
State Medicaid administrators
They would need to implement the rate increases beginning July 1, 2026, within the bill’s aggregate limits.
Headline styles
Increase Medicaid Nurse Pay
Plain English, a few words. Used as the page title.
Sponsors
No co-sponsors yet.
History
- Referred to health
- Referred to health
Full text
1 pageUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
326
2025-2026 Regular Sessions
IN SENATE (Prefiled)
January 8, 2025
Introduced by Sen. BAILEY -- read twice and ordered printed, and when printed to be committed to the Committee on Health
AN ACT to amend the social services law, in relation to medicaid reimbursement of private duty nursing services and care
The People of the State of New York, represented in Senate and Assembly, do enact as follows:
Section 1. The social services law is amended by adding a new section 365-q to read as follows:
§ 365-q. Reimbursement of private duty nursing services and care. Notwithstanding any provision of law to the contrary, rates of payment for care and services furnished by a private duty nurse that would otherwise qualify for reimbursement pursuant to this title shall be increased by an amount not to exceed fifteen million dollars in the aggregate for the period July first, two thousand twenty-six to March thirty-first, two thousand twenty-seven, and twenty million dollars annually thereafter for each period of April first to March thirtyfirst.
§ 2. This act shall take effect July 1, 2026.
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD00815-01-5
Reflowed for reading: line numbers and page breaks removed. Cite the official text.
Sponsor's memo
Title of bill
An act to amend the social services law, in relation to medicaid reimbursement of private duty nursing services and care
Purpose or general idea of bill
To increase Medicaid beneficiaries' access to quality health care services by increasing Medicaid fees for private duty nursing services.
Summary of specific provisions
Section one of the bill would add a new section to the Social Services Law governing reimbursement of private duty nursing services. The bill would allocate $15 million during the relevant fiscal year to increase reimbursement under the Medicaid program for private duty nursing services. The bill would allocate $20 million for such reimbursement on an annual fiscal year basis thereafter. Section two sets forth the effective date.
Justification
The State is currently experiencing a very serious shortage in private duty nursing. This shortage is due to a variety of factors including the lowest unemployment rate in over a decade, and rates of reimbursement in both the commercial and government sectors that have not kept pace with market demands. In some areas of the State, the Medicaid rates for private duty nursing have not changed in over a decade.
The nursing shortage is making it difficult to recruit and retain quali- fied nurses, particularly in specialty areas such as nursing care for medically and technologically dependent children and adults. This bill would provide the resources necessary to assist in recruiting and retaining qualified nursing care for the State's most vulnerable popu- lation Medicaid beneficiaries. In addition to easing the workforce shor- tage in nursing and increasing access to quality care, the bill would provide badly needed respite to family members who are struggling to care for medically complex children and adults. The bill will reduce Medicaid costs over the long term by reducing unnecessary hospitaliza- tion that are the result of a lack of access to community care.
Prior legislative history
2017-18: S.3795 - Referred to Health
2019-20: S.2561 - Referred to Health
2021-22: S.3354 - Referred to Health
2023-24: S.1090 - Referred to Health
Fiscal implications
This bill will increase the status share of Medicaid costs by an esti- mated . $15 million. However, the bill will likely decrease Medicaid
costs over the long term through the provision of more timely care and a decrease in institutional costs.
Effective date
This act shall take effect July 1, 2026.
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.