New York managed Medicaid plan shutting down, prompting layoffs

Amherst, N.Y.-based Fallon Health Weinberg is closing a long-term Medicaid managed care plan and laying off 31 employees between Dec. 15 and Jan. 12, 2024, according to a WARN notice filed with the state.

Fallon Health Weinberg was founded in 2014 as a joint partnership between Worcester, Mass.-based Fallon Health and Weinberg Campus, a retirement community in suburban Buffalo, N.Y.

Fallon Health Weinberg offers an all-inclusive managed care plan for the elderly (PACE) and a managed long-term care (MLTC) plan for Medicaid eligible residents.

The MLTC plan is set to close following new state requirements mandating all health plans to offer a D-SNP plan by 2024. Fallon Health Weinberg was unable to meet the Jan. 1 deadline and chose to end the program, Buffalo Business First reported Aug. 15.

A spokesperson for Fallon Health told Becker's it is one of several plans closing a long-term managed care program because of the new state requirements.

"We are disappointed that we will no longer be able to support these individuals and are focused on helping them transition to other programs, as appropriate," the spokesperson said. "We anticipate they will receive information from the state in the coming weeks regarding their options. We will support all MLTC employees affected by this decision in the months ahead with severance and with job search and outplacement services."

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