Thousands of health care workers from around the state flooded Albany on Tuesday for 1199SEIU's largest health demonstration in the state in decades, demanding billions of more dollars in the next budget to bolster New York's health system.
They want $2.5 billion more for the health system, including a 20% increase in Medicaid reimbursement rates for nursing homes and 10% for hospitals. That's compared to the 5% Medicaid rate increase Gov. Kathy Hochul proposed in her executive budget and a $700 million cut to safety-net hospitals.
About four out of five hospitals in New York are on a fiscally unsustainable path, Greater New York Hospital Association President & CEO Ken Raske said.
"When you put all of that together, we end up with actually losing money from last year, which is an absurd situation," Raske said.
About 16,000 unionized health workers traveled to the state Capitol from around the state demanding $2.5 billion more for health care, restoration of the funding for safety-net hospitals and a plan to address the disparity in reimbursement rates in upstate New York, which are approximately 20% lower than downstate's.
They crowded the MVP Arena on Tuesday afternoon, urging lawmakers to preserve last year's increases in pay for home care workers, reversing proposed wage cuts and putting the state's minimum wage on track to increase to $21.25 by 2027 before indexing future annual hikes to inflation.
Raske says the association supports the Senate's budget proposal, which invests an additional $300 million for financially distressed hospitals and prevents the end of the Medicaid 340b program that would reduce reimbursement for certain prescription drugs. Hospital inpatient, outpatient, nursing home and assisted living Medicaid reimbursement rates would increase by 10% under the Senate's plan, which also restores $187 million for nursing homes to satisfy the state's minimum staffing requirement.
"Thank you, and our one-house budget says ‘Thank you,'" Senate Majority Leader Andrea Stewart-Cousins said to health care workers during Tuesday's rally. "We put in a billion dollars more for the hospitals."
The 1% increase to Medicaid reimbursements in last year's budget are still below pre-pandemic levels after a 1.5% cut in 2020.
New York was the only U.S. state to cut Medicaid reimbursements during the COVID-19 pandemic.
"We need those wages to bump up," said James Funderburk, a housekeeper at Elderwood at Williamsville nursing home in Buffalo. "Because health care — it can't fall under. It can't drown. Our elderly need us."
Legislative leaders and prominent lawmakers showed their support to fight for different health investments than what Hochul proposed in her executive budget.
The chairs of the Senate and Assembly Health committees, Sen. Gustavo Rivera and Assemblywoman Amy Paulin, participated in Tuesday's rally to call for more health funding as budget negotiations get more serious.
Assembly Speaker Carl Heastie vowed the state spending plan won't pass without adequate compensation for health care workers.
"We ain't gonna do a budget unless it shows you the respect that you do," he said.
In a campaign-like speech, state Attorney General Letitia James said the state owes health workers more funding for fair pay and a safe working environment and to boost safety-net hospitals devastated by the COVID pandemic.
"It’s been 1199 who has stood up and represented the interests of the state, and now we should pay you back!" she exclaimed to a cheering crowd.
The Greater New York Hospital Association argues the extra funding is what health facilities need to raise wages, recruit staff and decrease wait times for emergency and long-term care.
"It's gonna take years before we get back on our feet again," Raske said.
Representatives with Hochul's office did not return requests for comment Tuesday or respond to questions about the pushback to the state health care funds in her executive budget proposal.