In November 2019, New York State submitted an $8 billion request to the Federal government for an extension of its Delivery System Reform Incentive Payment (DSRIP) program. DSRIP is a mechanism under which a state, under authority granted by Section 1115 of the Social Security Act, can have certain Federal rules waived for the benefit of individuals enrolled in Medicaid and receive funding to support its efforts to improve health outcomes for Medicaid consumers.

New York’s DSRIP program, which began April 1, 2015, was the culmination of the state’s initial Medicaid Redesign Team efforts. The Federal government invested an initial $8 billion of the $17 billion in Federal savings that had been identified at that point. Seeking to build on its accomplishments to date, New York State submitted an extension request, as other states had done, again using a portion of the savings that it had generated for the Federal government. On February 21, 2020, the Federal government denied New York’s request for an extension. As a result, the DSRIP program will end on March 31, 2020.

This white paper provides additional information and background on the New York DSRIP program.