Governor’s budget attempts to ease local Medicaid costs
A first look at Governor Andrew Cuomo’s budget proposal shows some progress on easing current Medicaid burdens for counties in New York state–but it’s not quite as specific as some would like.
The governor is proposing a phased-in program that would shift all growth in Medicaid costs to the state, which means that within a few years counties would effectively see their share of expenses capped.
In 2013-14, local government Medicaid growth will be reduced to 2%, then reduced by an additional 1% annually over the subsequent two years so that in 2015, counties’ and New York City’s Medicaid expenses will no longer grow. The takeover of the 3% Medicaid growth factor will save counties and New York City $1.2 billion over five State fiscal years.
This is short of what county leaders have been hoping for. But the Governor did add this language.
The Executive Budget also provides substantial relief in health care spending for all counties and the City of New York by reducing growth in the local share of Medicaid payments by 1% annually beginning in 2013-14, fully eliminating all growth by 2015-16, and beginning a phased-takeover of local government administration of the Medicaid program.
These initiatives provide significant administrative mandate relief and will save local governments cumulatively nearly $1.2 billion over five years.
Although it doesn’t set any specific time or money targets for passing Medicaid costs to the state from counties, this does seem to indicate that Cuomo knows this is very much on people’s minds, and that it’s something he intends to do something about.
NCPR will broadcast Cuomo’s full budget address at 2 pm.
So he’s capping the rise in costs over a couple years? How big of the governor. It’s not nearly enough when the current costs are already a huge burden for counties. As mentioned last week in this blog, the state needs to take over all the costs and soon. So much for mandate relief.
The state should either scrap Medicaid or fully fund it. Nothing but cowards in Albany.
Yes, so much for mandate relief. If you want to have mandates, man up and fully fund them through the income tax.
Want to be really brave and progressive with Medicaid funding? Establish a legalized and regulated medical marijuana system in which EVERY tax dollar it creates goes directly to fund the Medicaid program. And on the flip side, the Medicaid costs could potentially drop over time given medical marijuana could potential save huge amounts of Medicaid spending that currently goes to big pharmaceutical companies.
It could be a win-win if done correctly. We could learn a great deal about such a system from other states and cities who have had such a system for years. That’s not to say it wouldn’t be without growing pains and a difficult political battle, but it can be done over time with the right leadership.