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Alliance Alert: The Alliance for Rights and Recovery is excited to see New York moving forward with plans to extend its groundbreaking Medicaid 1115 waiver and continue investing in health-related social needs services. Over the past two years, the New York Health Equity Reform (NYHER) Waiver has begun transforming the way we think about health by recognizing that recovery and wellness are influenced by much more than clinical services alone. We are encouraged by the state’s commitment to sustaining this work and hope to see many of the successful elements of the current NYHER waiver included in the next five-year demonstration.
Expanding health-related social needs services continues to be a major priority for the Alliance because it represents a fundamental shift in our behavioral health system from one that primarily focuses on managing symptoms to one that embraces a whole-person approach to health and recovery. Supporting someone’s mental health means addressing the factors that make recovery possible, including stable housing, nutritious food, reliable transportation, employment opportunities, social connection, and other essential needs. By investing in these supports, we can improve health outcomes, strengthen communities, and help people achieve the lives they want for themselves.
Our Alliance Annual Conference will feature a panel discussion on the NYHER Waiver and Social Care Networks, highlighting the great progress made during the waiver’s first two years while examining the provisions included in the state’s new application to the Centers for Medicare & Medicaid Services (CMS). We invite everyone interested in the future of integrated, whole-person support to join us for this timely conversation and learn how these innovative reforms are helping reshape New York’s behavioral health system. See below for the registration and hotel information. View the full conference program here or in the attachment.
*Due to popular demand, we’re extending our Buy Five, Get One Conference Registration offer through Friday, July 24 at 11:59 p.m. This is the final extension of this promotion and the last opportunity to take advantage of this special rate before regular pricing kicks in. We know many organizations are waiting to hear about conference scholarship awards, which will be announced soon. We strongly encourage you to secure your registrations now with confidence: if someone you register is later awarded a scholarship, we’ll gladly transfer that paid registration to another individual from your organization. Don’t miss this final opportunity to register your team and join us for this year’s Alliance Annual Conference!
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New York Seeks 5 More Years for $7.5B Medicaid Social Services Pilot
By Amanda D’Ambrosio | Crain’s Healthcare | July 10, 2026
New York is seeking federal approval to extend its $7.5 billion Medicaid pilot — and roll over $2.1 billion in federal funds — to keep paying for social services like housing, nutrition and transportation.
A draft proposal released Wednesday by the Department of Health requests a five-year extension of New York’s 1115 waiver demonstration, which expires in March 2027. Under the program, the state received federal dollars to offer social services to Medicaid enrollees, including cooking supplies, asthma remediation and non-medical transportation.
New York received federal approval for the pilot in January 2024, built out a payment system and began delivering social services meant to improve Medicaid enrollees’ health. Now, officials are seeking to sustain the program and prove it works.
“As its investments build momentum, the current demonstration already shows promising results,” the Department of Health said in the proposal, noting that the state has screened 1 million Medicaid enrollees for eligibility. “With this extension, New York seeks to maintain that momentum.”
The U.S. Centers for Medicare and Medicaid Services approved the current version of New York’s social services pilot under the Biden administration, authorizing $6 billion in federal funds for social services, workforce investments and support for financially distressed hospitals. With state funding, the program’s total cost reached $7.5 billion.
New York’s application is largely a request to keep the status quo, said Jason Helgerson, former state Medicaid director and CEO of consulting firm Helgerson Solutions Group. “I think what they are saying is, we need more time to fully ramp this program up.”
The state is seeking approval for two buckets of funding. First, New York wants to roll over $1.5 billion in federal funds it has already claimed but not yet spent on social services and workforce programs. The second source is $672 million in authorized federal funds that the state has not yet claimed — money that could be somewhat more contentious in negotiations, Helgerson said.
Funding could be harder to secure as the Trump administration increases oversight of spending under 1115 demonstration programs. CMS released guidance last year saying it would phase out federal matching funds for so-called designated state health programs under 1115 waivers — the same funding source that supports New York’s social services pilot.
The federal government could alter New York’s program during negotiations, but Helgerson said he is “cautiously optimistic” that the state will continue to have a Medicaid pilot that reimburses for social needs after March 2027.
“If New York wants to get something approved, it’s going to have to be willing to compromise,” Helgerson said.
Danielle De Souza, a spokesperson for the Department of Health, said the current pilot has “helped improve access to care, strengthen health services, and make Medicaid more cost effective.”
She added that the agency is seeking public feedback before submitting its waiver extension application: “During these uncertain times, the Department remains committed to protecting the health of New Yorkers and ensuring they continue to have access to the care and services they need.”
New York will hold a public comment period for its waiver application through Aug. 21. State Medicaid Director Amir Bassiri said at a June meeting of public health regulators that the agency plans to submit the application to the federal government by the end of September.