Capital Region think tank proposes $3B in Medicaid savings

New York News
Cuomo at podium for State of the State 2020

Gov. Andrew Cuomo delivers his State of the State address at the Empire State Plaza on January 8. (AP Photo/Hans Pennink, File)

ALBANY, N.Y. (NEWS10) — New York could lower Medicaid costs by over $3 billion, according to 11 proposals by Bill Hammond, the director of health policy at the Empire Center for Public Policy.

The nonprofit group submitted the proposals to a Gov. Andrew Cuomo’s Medicaid Redesign Team at the Albany Capital Center on Friday. Cuomo appointed the Redesign Team on February 4 to save $2.5 billion by April 1, making up for a massive shortfall in the state budget.

Hammond outlines seven ideas that come with price tags:

  • Reduce overuse of personal assistance: $1.4B
  • Improve eligibility screening: $500M
  • Reform the Indigent Care Pool: up to $370M
  • Cap funding for minimum wage costs: $300M
  • Rescind the November 2018 rate increase: $278M
  • Limit subsidies for distressed hospitals: $143M
  • Eliminate subsidized malpractice coverage: $127M

And four that are less precise:

  • Strengthen the global cap
  • Tighten long-term care fiscal review
  • Reject new taxes
  • Reject cost shift to local government

Hammond’s proposals do not affect current beneficiaries or local governments.

The Empire Center is an independent, non-profit think tank and government watchdog group that focuses on reining in spending to improve the state.


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