A state trial judge in Albany has struck down New York's lower rates for early intervention therapy delivered by telehealth. The New York Law Journal reported on Oct. 16, 2026 that the judge annulled the Department of Health's cuts, finding the agency failed to show how its analysis justified them, even though it had reasons to encourage in-person care. Crain's New York Business also reported the ruling on Oct. 19.
What the cuts were
The cuts are written into New York's Medicaid state plan amendment 24-0041, which CMS approved on April 2, 2026. It raised early intervention rates 5% from Oct. 1, 2024, and from Jan. 1, 2025 reduced telehealth rates for basic and extended home and community services under an approved individualized family service plan (IFSP):
| Region | Telehealth cut |
|---|---|
| New York City, Westchester, Poughkeepsie, Long Island | 22% |
| Rest of state | 10% |
The Department of Health posts the reduced amounts by county in its telehealth rate schedule.
Early intervention serves children from birth to age 3 with developmental disabilities or delays. In October 2025, Spectrum News reported that the Agencies for Children's Therapy Services and two of its members had sued the department to overturn the telehealth reductions; the program serves about 70,000 children a year, according to that report. The coverage of the ruling we could read does not name the parties, and it does not say whether the state will appeal.
Why this matters for providers and DSPs
Many agencies that serve adults with I/DD also run early intervention programs, and families who start in early intervention often move into the adult system later. The ruling turns on whether the state showed its work before cutting a rate schedule, the same question providers raise when other disability rates are cut. Agencies billing telehealth sessions should watch for Department of Health guidance on which rates apply and whether any past claims will be repaid.