N.Y. governor wants panel to find $2.5 billion in Medicaid savings
New York Gov. Andrew Cuomo recently charged a panel of healthcare industry and government officials with finding ways to save $2.5 billion in Medicaid spending for the state’s next fiscal year, which starts April 1. Much to the chagrin of New York City officials, no city leaders were tapped for the 21-person panel.
The redesign team—co-chaired by Michael Dowling, CEO of Northwell Health, and Dennis Rivera, former chair of SEIU Healthcare—was formed because the state’s roughly $75 billion Medicaid program had been a key contributor to a projected $6 billion budget gap.
The Cuomo administration cited the minimum wage increase to $15 and higher costs in home care for the elderly and chronically ill as among the drivers of higher Medicaid spending.
The state and city have already been feuding over a policy proposed by the governor that would require local governments that exceed a state 2% property tax increase cap to pick up the totality of the annual increase in Medicaid costs in their jurisdiction. New York City contributes about $5 billion a year to the Medicaid program, but it would be on the hook for an additional $1.1 billion if costs grow at about 7%, which is similar to the rate in recent years.
The city has objected to paying more because it says its role in administering Medicaid is limited to checking who can participate while the state sets eligibility standards and benefit levels. During a budget hearing earlier this month, New York Mayor Bill de Blasio warned that the city would have to reduce services to sustain that kind of cost increase. ●