At the Capitol: Combating the rising cost of Medicaid

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ALBANY N.Y (NEWS10) – The Citizens Budget Commission is urging New York State to reduce spending after its report found the state deferred a 1.7 billion dollar Medicaid program payment this Spring.

NEWS10’s Corina Cappabianca has more on what happened and what’s being done to rein in costs.

New York State’s Medicaid budget for the Fiscal Year 2019 was about 77-billion dollars.

And, a report from the Citizens Budget Commission found a 1.7 billion dollar payment that was supposed to be paid at the end of March was instead paid in April… kicking it to Fiscal Year 2020.

((David Friedfel, Citizens Budget Commission Director of State Studies))
it made it look like spending in 2019 was less than it actually was, which sets a bad precedent and it makes it harder to pay the bills in 2020 and beyond.

The state currently has a Medicaid Global Cap of 4 percent or less that was put into place under the Cuomo Administration.

A spokesperson from the Governor’s Office says:

“We continue to monitor Medicaid spending patterns and evaluate year end results for future updates to (the) State Financial Plan…

“We are also working on options to reduce spending to stay under the Global Cap as we prepare the Executive Budget for FY 2021 that will be released in January and by law must be balanced.” -Jason Conwall.

((David Friedfel, Citizens Budget Commission Director of State Studies))
The cap’s been a useful tool, it’s helped to slow the growth in medicaid, it’s helped to push the industry as well as the legislature along to hold down costs up until recently unfortunately. But if it wasn’t for the medicaid cap regardless the state would have had a very hard time to expend those funds in FY 2019.

And, he suggests looking into long-term care costs as a solution.

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