Health Commissioner Dr Nirav Shah says the waiver asks the federal government to let New York keep $10 billion dollars of $17 billion in expected Medicaid savings over the next few years to invest in primary care, and even housing for some of the state’s sickest and costliest Medicaid recipients.

“This will substantially reduce the number of unneeded, expensive emergency room visits that currently occur today thorough out  the system, ” Shah said. The money would also be used to help struggling public nursing homes and increase mental health care.

The plan is supported by the state’s major hospital and health care workers' groups.