Medicaid changes force First Transit to cut jobs and routes
CHENANGO COUNTY – Facing lost revenue that resulted from state-wide changes in transportation for people on Medicaid, First Transit made it public on Monday that they will run fewer routes and minimize its staff by the end of June.
First Transit General Manager Paul Dougher announced at the monthly county Board of Supervisors meeting that the company plans to have 31 jobs abolished or reduced in some capacity and also reduce fixed run loops to outlying towns and villages by June 30.
“Depending on how far from Norwich each one of these communities are determines how many times per day we go to that location,” said Dougher.
Citing time and expense as a limiting factor, Dougher explained that First Transit, the county’s primary source of public transportation, is likely to reduce its stops in many communities from the current six to eight times per day to only three times per day – one morning, one afternoon, and one evening. The run to McDonough will be eliminated due to lack of riders.
Challenges for the bus company trace back to structural changes in the state Department of Health in 2010. At that time, social services law permitted DOH to assume administrative management of non-emergency transportation in New York State counties. Since then, DOH has required that a private Medicaid brokerage system be implemented in each region of the state.
The change resulted in a state contract with Medical Answering Services, a public transportation company based in Syracuse. The contract awarded Medical Answering Services with the entire Central New York Region which encompasses 24 counties, including Chenango County. Changes went into effect in October, 2013.
Because Medical Answering Services was awarded the state contract, non emergency rides for Medicaid recipients that would have previously been assigned to public transit were switched to taxies and ambulance providers, many of which are from outside areas.
All this means that First Transit, a private company, is no longer receiving state reimbursement for transport of Medicaid patients. And since a bulk of its riders are on Medicaid, it’s hurting the business, said Dougher.
Dougher also said discussions with the Department of Health prior to changes made in October were misleading. First Transit was assured the decision would have little impact on the business, he said. When changes went into effect, he said it was a surprise to Chenango County and all other communities affected in Upstate New York.
“First Transit has worked tirelessly to petition all of our political folks in Albany to try and get the Department of Health to change the decision they made in the fall of last year,” Dougher said. He added despite budgetary restraints, the company will continue working with local agencies including the Chenango County Department of Health, Area Agency on Aging, and ARC.
“First Transit has made a commitment that we are going to continue service in Chenango County ... We will do anything and everything to keep that going.”
Even so, changes to the non emergency medical transportation system have left a dent on First Transit. The Norwich branch of the company employed more than 70 people this time last year. Since then, employees who left the company were not replaced. Current plans are to have only 27 employees stay with First Transit heading into the upcoming summer season.
New York State’s takeover of Medicaid transportation is done in effort to reduce Medicaid costs and payment, though county board members question what savings will be seen in upstate versus the New York City area.
“What we have found in other counties in the Central New York Region is their costs for Medicaid are increasing,” said Chenango County Social Services Commissioner Bette Osborne. “We in Chenango County are still capped and those costs don’t come down to us, but I think this definitely impacts human value. How do you live in Lincklaen or West Edmeston or McDonough and not have public transportation?”
She added, “Even if people use public transportation once a month just to get groceries, it’s a lifeline and that’s important. Unfortunately, it’s not sustainable because of promises that were made by the Department of Health that have fallen through.”
First Transit General Manager Paul Dougher announced at the monthly county Board of Supervisors meeting that the company plans to have 31 jobs abolished or reduced in some capacity and also reduce fixed run loops to outlying towns and villages by June 30.
“Depending on how far from Norwich each one of these communities are determines how many times per day we go to that location,” said Dougher.
Citing time and expense as a limiting factor, Dougher explained that First Transit, the county’s primary source of public transportation, is likely to reduce its stops in many communities from the current six to eight times per day to only three times per day – one morning, one afternoon, and one evening. The run to McDonough will be eliminated due to lack of riders.
Challenges for the bus company trace back to structural changes in the state Department of Health in 2010. At that time, social services law permitted DOH to assume administrative management of non-emergency transportation in New York State counties. Since then, DOH has required that a private Medicaid brokerage system be implemented in each region of the state.
The change resulted in a state contract with Medical Answering Services, a public transportation company based in Syracuse. The contract awarded Medical Answering Services with the entire Central New York Region which encompasses 24 counties, including Chenango County. Changes went into effect in October, 2013.
Because Medical Answering Services was awarded the state contract, non emergency rides for Medicaid recipients that would have previously been assigned to public transit were switched to taxies and ambulance providers, many of which are from outside areas.
All this means that First Transit, a private company, is no longer receiving state reimbursement for transport of Medicaid patients. And since a bulk of its riders are on Medicaid, it’s hurting the business, said Dougher.
Dougher also said discussions with the Department of Health prior to changes made in October were misleading. First Transit was assured the decision would have little impact on the business, he said. When changes went into effect, he said it was a surprise to Chenango County and all other communities affected in Upstate New York.
“First Transit has worked tirelessly to petition all of our political folks in Albany to try and get the Department of Health to change the decision they made in the fall of last year,” Dougher said. He added despite budgetary restraints, the company will continue working with local agencies including the Chenango County Department of Health, Area Agency on Aging, and ARC.
“First Transit has made a commitment that we are going to continue service in Chenango County ... We will do anything and everything to keep that going.”
Even so, changes to the non emergency medical transportation system have left a dent on First Transit. The Norwich branch of the company employed more than 70 people this time last year. Since then, employees who left the company were not replaced. Current plans are to have only 27 employees stay with First Transit heading into the upcoming summer season.
New York State’s takeover of Medicaid transportation is done in effort to reduce Medicaid costs and payment, though county board members question what savings will be seen in upstate versus the New York City area.
“What we have found in other counties in the Central New York Region is their costs for Medicaid are increasing,” said Chenango County Social Services Commissioner Bette Osborne. “We in Chenango County are still capped and those costs don’t come down to us, but I think this definitely impacts human value. How do you live in Lincklaen or West Edmeston or McDonough and not have public transportation?”
She added, “Even if people use public transportation once a month just to get groceries, it’s a lifeline and that’s important. Unfortunately, it’s not sustainable because of promises that were made by the Department of Health that have fallen through.”
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