F-SHRP Extension April 2011

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April 29, 2011

Cindy Mann
Director, Center for Medicaid & State Operations
Centers for Medicare & Medicaid Services
7500 Security Boulevard
MS S2-26-12
Baltimore, Maryland 21244-1850

Dear Ms. Mann:

This letter serves as the New York State Department of Health´s (Department) acknowledgement of the Centers for Medicare and Medicaid Services´ approval of our request for an extension of New York State´s Medicaid Section 1115 demonstration, the Federal-State Health Reform Partnership (F-SHRP) (11-W-00234/2). The Department accepts both the amended Special Terms and Conditions (STCs) and expenditure authority for this waiver program, with the technical corrections noted. Under this early extension, the Department is authorized to continue its efforts to implement the health care system restructuring efforts begun under the Healthcare Efficiency and Affordability Law of New York, and the state is able to benefit (for purposes of demonstrating health care reform expenditures) from the temporary increase in its Federal Medical Assistance Percentage (FMAP) rate under the American Recovery and Reinvestment Act.

In light of the agreed upon language included in these STCs, under separate cover, the Department has submitted a request to the Departmental Appeals Board to withdraw its appeal of the disallowance in the amount of $260,989,718 in Federal Financial Participation (FFP) related to Designated State Health Program (DSHP) expenditures claimed under the F-SHRP waiver for the federal fiscal year ended September 30, 2007.

Enclosed is a summary of our technical changes as well as a revised set of STCs with the technical corrections included.

We look forward to working with you to complete these significant reforms to the state´s health care system.


Nirav R. Shah, M.D., M.P.H.
Commissioner of Health


cc: Paul Boben
      Camille Dobson
      Michael Melendez
      Jason Helgerson
      Vallencia Lloyd