Methadone Maintenance Treatment Program (MMTP)

December 2, 2011

Dear Methadone Colleagues:

As you are all aware, the final 2011-12 state budget requires a two percent across-the-board reduction to most Medicaid payments. These reductions will apply for dates of service on or after April 1, 2011, and will remain in effect through March 31, 2013.

I am pleased to advise you that OASAS and the Department of Health (DOH) have agreed that as of yesterday, December 1st, the two percent reduction for non hospital based methadone providers will apply prospectively and the state will cease the recoupment for payments made for services provided between April 1, 2011 and yesterday. Hospital operated methadone programs have their two percent reduction included with the rest of the outpatient department two percent reductions so an immediate cessation of the two percent reduction is not technically possible. OASAS and DOH are working on a potential solution to the hospital reduction that will assure that the eventual impact to hospital based providers is prospective from December 1st as is the case for the freestanding providers.

OASAS and the DOH are also committed to working with the methadone provider community to discuss alternative cost saving methodologies that could be implemented going forward in lieu of the two percent reduction and we will be scheduling a meeting for this purpose in the near future.


Arlene Gonzalez-Sanchez
New York State
Office of Alcoholism & Substance Abuse Services (OASAS)