State Budget Passes with $100 Million in Benefits to NY Physicians
Friday, May 9, 2025
State Budget Passes with $100 Million in Benefits to NY Physicians
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Colleagues:
The state budget passed this week with numerous problematic items removed from the final version. That adds up to $100 million in benefits to NY physicians—a wonderful ROI for your MSSNY dues.
The New York State Legislature this week gave final approval to the nine bills consisting of thousands of pages that comprise the $254 billion state budget for the 2025-26 state fiscal year. Importantly, the final state budget includes a new $50 million for enhancements to physician Medicaid reimbursements, as part of an effort to increase Medicaid payments across the health care spectrum, through the new MCO tax enacted last year.
Equally important, the final budget EXCLUDED numerous proposals under serious discussion that had been STRONGLY OPPOSED by MSSNY together with several allies, including proposals that would have:
- Required the 16,000 physicians with Excess Medical Malpractice Insurance coverage to pay 50% of the cost of the coverage, which would have imposed $40 million in new costs on these physicians.
- Eliminated the right of physicians to appeal underpayments from Medicaid Managed Care plans to New York’s Independent Dispute Resolution system.
- Permitted numerous physician assistants to practice without appropriate physician supervision.
- Eliminated the important review role played by county medical societies in approving physicians to participate in the Workers Compensation program.
- Eliminated the funding source for MSSNY’s Committee for Physicians’ Health program.
It should be noted that, as part of an effort to increase the availability of involuntary commitment as an option when someone has a serious mental illness that is “likely to cause serious harm” to themselves or others, the final budget did contain a provision that had been opposed by the New York State Psychiatric Association and MSSNY to permit a psychiatric nurse practitioner to be one of the two examiners to certify a patient for involuntary commitment.
We thank all the physicians and county medical society leaders who took the time to meet with their legislators, send a letter or post a tweet on these many items. These grassroots efforts were critically important to supplement the extensive work of MSSNY’s advocacy team in conjunction with specialty societies and other allies.
As always, these policy “wins” are temporary as proposals rejected one year can come back the next. Furthermore, with uncertainty at the federal level regarding potential steep Congressional cuts to New York’s Medicaid program, it is possible that the State Legislature and Governor may need to adopt amendments to this budget later this year to address these funding gaps.
And finally, I want to thank MSSNY’s Senior Vice-President and Chief Legislative Counsel Moe Auster and MSSNY’s entire Governmental Affairs team for their tireless efforts in advocating for New York physicians and for providing this good news summary of the final budget.
We have so much more work to do. Please support our MSSNYPAC. And if you are not already a member, please join MSSNY.
All the best,
David Jakubowicz, MD, FACS
MSSNY President
AI in Medicine: Support Tool or Legal Minefield for Physicians?
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As artificial intelligence (AI) tools become increasingly prevalent in clinical settings, a new JAMA Health Forum viewpoint cautions that physicians are facing mounting legal and ethical risks with limited support. The article, co-authored by researchers from Johns Hopkins and the University of Texas, highlights how physicians are increasingly held solely accountable for AI-assisted decisions, even when algorithms are flawed or unclear. This “superhumanization” of physicians, the authors argue, intensifies burnout and may increase diagnostic errors, particularly in the absence of clear liability laws or institutional safeguards.
The study urges health systems to implement AI training programs, decision-support checklists, and interdisciplinary feedback loops to help clinicians calibrate their trust in algorithmic output. Without such systemic support, the burden of interpreting and justifying AI recommendations remains dangerously one-sided. As New York practices rapidly adopt AI technologies, MSSNY continues to advocate for physician-centered regulations and institutional standards that protect both clinicians and patients.
Calibrating AI Reliance—A Physician’s Superhuman Dilemma (Patil, PhD, Myers PhD, Lu-Myers, MD, MPH, JAMA Health Forum, 4/21).
New York Joins Lawsuit Challenging Mass HHS Layoffs Under Trump Administration
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New York Attorney General Letitia James, along with a coalition of 20 other state attorneys general, has filed a federal lawsuit contesting the legality of extensive layoffs at the U.S. Department of Health and Human Services (HHS). The cuts, part of a restructuring plan led by the Department of Government Efficiency (DOGE) and HHS Secretary Robert F. Kennedy Jr., have reduced HHS staffing by more than 25% and eliminated entire divisions, including critical maternal health, mental health, and substance abuse teams.
The lawsuit argues that the layoffs violate congressional mandates and have undermined the agency’s ability to deliver lifesaving health services, including the 988 Suicide and Crisis Lifeline and the CDC’s maternal mortality tracking. James warned that the administration is “not streamlining, but sabotaging” the nation’s healthcare infrastructure.
State Attorneys General Sue Over ‘Unconstitutional’ HHS Restructuring (Vogel, Healthcare Dive, 5/6).
Dr. Melissa Grageda’s Story of Overcoming Implicit Bias in the ICU
Dr. Melissa Grageda, a dedicated ICU physician and proud member of MSSNY, is redefining what leadership looks like in high-pressure clinical settings. Often met with skepticism due to her identity, she has consistently proven her expertise and resilience in life-or-death situations. As part of MSSNY’s Resilience in Practice video series, Dr. Grageda shares her powerful journey of earning respect and commanding authority in the ICU through skill, resolve, and compassion. Her story serves as both a call to action and a source of inspiration for New York physicians navigating similar challenges.
MSSNY’s Minority Affairs Section is proud to spotlight voices like Dr. Grageda’s, physicians who are breaking barriers, advancing New York physician advocacy, and helping to shape a more inclusive medical landscape. We invite all members to watch her story, reflect on their own, and consider joining the Minority Affairs Section to amplify underrepresented perspectives in medicine.
Empire State Medical, Scientific & Educational Foundation Needs Peer Reviewers
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Empire State Medical, Scientific & Educational Foundation has been providing quality medical peer review for over 40 years! They are currently seeking physicians specializing in Ophthalmology to join their panel.
Physicians must be:
- Board Certified
- Licensed in New York State
- In Active Practice for at least 5 years
Interested? Email your CV to: [email protected]
Exploring Psychedelics, Counterfeits, and Supplements in Modern Medicine
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On June 23, 2025, the New York County Medical Society will present a vital discussion: “Clinical Insights into Psychedelics, Counterfeit Medications, and Integrative Supplements.” MSSNY member Dr. Richard Mandel will join experts from NYU Grossman School of Medicine, Albert Einstein College of Medicine, and Hofstra/Northwell to examine timely issues shaping modern medical practice. Topics include the clinical promise and risks of psychedelics, the public health threat of counterfeit medications, and the appropriate use of integrative supplements such as red yeast rice, magnesium, and CoQ10. This 90-minute panel is essential for physicians navigating a rapidly evolving therapeutic landscape. Register Now
MSSNY Fights for Legislation to Provide Physicians Due Process when a Health Insurer Does Not Renew Their Contract
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This week the New York State Senate passed legislation supported by MSSNY (S.1911-A, Rivera), which would amend the Public Health Law to provide physicians with due process protection when a health insurer seeks to terminate a physician from its network by failing to renew a contract. Current law prohibits insurers from terminating a physician’s contract without a written explanation and an opportunity for a hearing before a three-member panel including a clinical peer in the same or similar specialty. Such protection does not apply for non-renewals.
In addition to protecting physicians from being arbitrarily non-renewed from an insurance network, this legislation also requires that a hearing panel includes one member appointed by the subject of the hearing, one by the insurer and a third member appointed by the other two.
This legislation would provide physicians with important due process protection, and it is currently before the NYS Assembly for consideration. Now that the State Budget has been adopted, MSSNY’s advocacy focus for the end of Session will include promoting the passage of the same-as Assembly legislation (A8052, Lavine) prior to the Legislature’s session adjournment tentatively scheduled for June 12, 2025.
Capital Update May 9, 2025
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- State Budget Passes with Numerous Problematic Items Removed from the Final Version
- Please Help Us Advocate for Prior Authorization Reforms by Completing our Survey.
- MSSNY Continues Advocacy Efforts to Preserve Medicaid Coverage for Millions of New Yorkers
- MSSNY Continues Push to Reverse Medicare Cuts to Physicians
NYRx to Launch Electronic Prior Authorization via CoverMyMeds This Summer
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Beginning this summer, NYRx, the Medicaid Pharmacy Program, will accept electronic prior authorization (ePA) requests via CoverMyMeds® in addition to phone and fax requests.
CoverMyMeds is a tool designed to simplify the prior authorization process by prompting prescribers to answer required clinical questions that can offer real-time approvals if clinical criteria are met. Prescribers will be able to electronically submit prior authorization requests, upload supporting documents, and track request status in real time.
Additionally, pharmacy providers who utilize CoverMyMeds will have the opportunity to initiate medication ePA requests on behalf of the member for completion by the prescriber. CoverMyMeds will direct the case to the prescriber’s queue and prompt them to complete and submit the ePA to NYRx.
Further communications, including effective dates, resources, and educational events, are coming soon.
What Pharmacy Providers and Prescribers Need to Do
- Read Three Ways to Submit a Prior Authorization to NYRx, the Medicaid Pharmacy Program.
- Read the Quick Guide to CoverMyMeds Prior Authorization Requests to learn more about CoverMyMeds.
- Visit the CoverMyMeds Log In page to create an account, complete your profile, and become familiar with the application.
Note: Please ensure that all information in your profile is accurate.
- Reach out to NYRx Education & Outreach team if you have questions or would like to learn more about how to submit ePA submissions via CoverMyMeds.
Resources
- CoverMyMeds Website
- NYRx Education & Outreach Website
- NYRx Prior Authorization Submission Guide
- Quick Guide to CoverMyMeds Prior Authorization Requests
- Three Ways to Submit a Prior Authorization to NYRx, the Medicaid Pharmacy Program
For questions related to CoverMyMeds technical support, contact the CoverMyMeds Call Center by phone at 1-866-452-5017 or by live chat at covermymeds.com from 8:00 AM to 8:00 PM ET, Monday through Friday, excluding holidays.
For questions related to NYRx, contact the NYRx Education & Outreach Call Center by phone at 1-833-967-7310 or by email at [email protected] from 8:00 AM to 5:00 PM ET, Monday through Friday, excluding holidays.
State Budget Passes—What It Means for You
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New York’s final budget is in. MSSNY’s Senior Vice-President and Chief Legislative Counsel Moe Auster explains what it means for you and your practice. Listen Now
Registration Now Open: Medical Matters CME Webinar
Owing to the highly contagious nature of measles, community (formerly known as herd) immunity requires an approximate 95% rate of vaccination. So far this year, there have been more than 900 confirmed cases of measles in the United States and three deaths. This is the second highest number of measles cases since 2000, when measles was declared eradicated in the United States. Learn more about effective communications about vaccines and endeavoring to regain community by registering for Measles, Community Immunity & How to Get it Back on May 21st at 7:30 am. William Valenti, MD, chair of MSSNY Infectious Diseases Committee, will serve as faculty for this webinar. Register now
Educational Objectives are:
- Recognize identifying features of measles as a reemerging infection
- Illustrate community (formerly herd) immunity and the role it plays in recent measles and other outbreaks
- Identify strategies to improve vaccination rates
Additional information or assistance with registration may be obtained by contacting Melissa Hoffman.
College Ave: A Better Student Loan Experience
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The team at College Ave learned from other complicated lending companies and decided to make getting a private student loan for college better. With a customer-friendly experience from application through repayment, they’ll help you find your best college loan in a way you can understand, and they’ll make it fast and easy. Plus, they have the tools and resources to help you succeed and pay for school without worry.
