Pols spar over Medicaid gap

ALBANY — Skeptical lawmakers skewered state health officials Wednesday as they sought details on Gov. Cuomo’s plan to tackle New York’s projected $6 billion Medicaid-induced budget deficit.

The governor pitched a plan that would penalize the city and other local governments for breaching a 3% spending cap and has created a “Medicaid Redesign Team” to identify $2.5 billion in savings in the state’s ballooning health plan covering the poor and elderly before the April 1 budget deadline.

“It is a little bit concerning, scratch that, a lot, very concerning that you are coming to a public hearing on Jan. 29 and you’re telling us that by April 1 we have to just accept something that’s put together by a magical crew of folks,” Sen. Gustavo Rivera (D-Bronx), the chairman of his chamber’s Health Committee, said as he peppered state Health Commissioner Howard Zucker and state Medicaid Director Donna Frescatore with questions about the proposal.

“We don’t know who they are, we don’t know the power that they have, the time limit we have is we either accept it or, according to this language, there’s just an across the board cuts. That is not acceptable,” Rivera added.

Zucker defended Cuomo’s plan to make the state’s Medicaid program “fiscally sustainable” through the work of the task force and by capping spending that is often out of the hands of local governments.

Cuomo has directed the panel to develop solutions that don’t increase costs for local governments or hurt Medicaid beneficiaries.

His budget czar, Robert Mujica, didn’t rule out that the panel could possibly examine raising taxes and surcharges on health insurance plans to cover costs, which has caused anxiety among critics and providers. Hospital groups, insurance companies and local governments have all voiced a willingness to collaborate with the commission.

Fiscal watchdogs have repeatedly noted that local municipalities have very minimal, if any ability, to reduce Medicaid spending.