Lawler Secures Critical Transition Period For New York’s MCO Tax, Protecting Hospitals And Nursing Homes

Washington, D.C. - 1/28/26… Today, Congressman Mike Lawler (NY-17) released the following statement on announcement that the Centers for Medicare & Medicaid Services (CMS) has issued a grace and transition period through the end of the calendar year for New York's new Managed Care Organization (MCO) tax.

"For months, I have advocated for CMS to utilize the transition period provided in the Working Families Tax Cuts legislation for New York's new MCO tax. This additional time would allow hospitals, nursing homes, and state administrators the necessary opportunity to adapt to the new policy without facing significant financial disruption.

I wrote letters to CMS Administrator Oz on this issue, called him every chance I got, and even had him visit the district to speak directly about it. I advocated on behalf of my constituents and our health care services at every opportunity.

Today, I am pleased to announce that CMS has issued a grace and transition period through the end of the calendar year, providing New Yorkers with this critical time to adjust. In simple terms, New York will get an additional 9 months and nearly $1 Billion to support our healthcare system. Thank you, Dr. Oz, for your thoughtfulness and dedication in implementing the Working Families Tax Cuts Act, and for working with me and alongside New Yorkers to make this happen," said Congressman Lawler.

Congressman Lawler is one of the most bipartisan members of Congress and represents New York's 17th Congressional District, which is just north of New York City and contains all or parts of Rockland, Putnam, Dutchess, and Westchester Counties. He was rated the most effective freshman lawmaker in the 118th Congress, 8th overall, surpassing dozens of committee chairs.

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