As New York Faces Big Medicaid Cost Overruns, Cuomo Stays Mum
November 20 2019 - 5:57PM
Dow Jones News
By Jimmy Vielkind
Expenses in New York's Medicaid program are running at least $3
billion over budget, but the administration of Gov. Andrew Cuomo
has so far said little about its plans to deal with the issue.
Administration officials are three weeks past their legal
deadline to release a midyear budget report, which will include
details about the overruns. The delay in disclosure has left
advocates and lawmakers wondering about Mr. Cuomo's plans for the
Medicaid program -- the state's largest expenditure -- and the
possibility of immediate service cuts.
"What we expect to be dealing with in the coming fiscal year is
on the scale of billions," said Assemblyman Richard Gottfried, a
Democrat from Manhattan who chairs the chamber's health committee.
"Paying for health care in New York is expensive. So when you talk
about a 5 or 10% cut in the program, you really can't do that
without causing serious damage."
A representative for Mr. Cuomo deferred comment to the
administration's Budget Division, whose spokesman Freeman Klopott
wouldn't say if the state would make midyear service cuts or
explain why the midyear report hasn't been posted.
Budget Director Robert Mujica told reporters in September that
Medicaid spending was a concern, but that the administration was
preparing a budget that doesn't raise taxes. In a statement, Mr.
Klopott said the administration was "developing a plan that will
fix the structural imbalance while also continuing high-quality
care for more than six million New Yorkers."
After taking office in 2011, Mr. Cuomo, a Democrat, established
a cap on the allowable growth in the Medicaid program and won
legislative approval for the state Department of Health to reduce
spending if outlays exceeded the set limit. According to Bill
Hammond, health policy director for the fiscally conservative
Empire Center for Public Policy, this year's cost overruns were
first disclosed in a May fiscal plan update.
That document said the Medicaid program only stayed within the
cap last year by pushing a $1.7 billion payment from March into
April, when a new fiscal year began. That overrun carried into the
current fiscal year and has only been exacerbated by increasing
enrollment in long-term care programs and payments to distressed
hospitals, the state's Budget Division said in an information
statement posted in October.
That document estimated Medicaid spending was between $3 and $4
billion above its allotted rates. It said the administration would
provide more details in an update due Oct. 30, including whether
the state would pare spending in the next few months, and how the
overruns would affect an overall $4 billion budget deficit
projected for the next fiscal year.
More than 6 million New Yorkers get health care through
Medicaid. Not accounting for the overruns, the state Health
Department projected it would spend $21.7 billion on Medicaid in
the fiscal year that ends in March 2020.
Mr. Hammond said the Medicaid situation would cause the state's
deficit to expand. He faulted the Budget Division for holding back
the midyear update, which by law should have been posted on Oct.
30. Mr. Cuomo has failed to meet the deadline every year that he
has been governor.
"We're so dependent on them to tell us what's going on, because
they have more information than anyone else," Mr. Hammond said.
"When you find out they've been holding that back and actively
distorting facts it pulls the rug out from everybody."
(END) Dow Jones Newswires
November 20, 2019 17:42 ET (22:42 GMT)
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