Medicaid poses too big a burden, time for major reform to program, he says
State Senator James L. Seward (R/C/I – Oneonta) has announced that he is co-sponsoring legislation (S.5889-B) that he believes will reform the cost administration of New York State’s Medicaid system through a phased-in state takeover.
This takeover, according to Seward, will gradually eliminate the local share that has traditionally been paid by county governments and funded by property taxes.
“After working for years to convert the masses in Albany, a property tax cap is finally in place,” said Senator Seward. “The cap is a major milestone but it needs to be linked to substantial mandate relief for local governments, a step we can take by exorcising the biggest mandate demon—Medicaid.”
The bill provides for an eight-year gradual state takeover of the local Medicaid costs.
The end result would eliminate Medicaid costs from county budgets, helping to provide municipal governments with flexibility to substantially reduce local property taxes.
Currently, the proposal is designed to initially freeze local Medicaid costs thereby providing $180 million in immediate local savings by eliminating the automatic three percent annual spending increase currently required by statute.
Starting in the third quarter of 2012, the local share would be reduced by five percent, which would provide counties with an additional $75 million, totaling $255 million in savings for county governments.
Between 2012 and 2019, local Medicaid costs will continue to be gradually reduced as the state assumes an increasing share of the burden.
Additionally, the timing of the bill is aligned with the federal Affordable Care Act, which provides an opportunity for the state to restructure Medicaid in a way that standardizes services, reduces costs and improves patient outcome.
“Five million New Yorkers are now enrolled in Medicaid—that’s 26 percent of the state’s population. Any program that extensive needs to be managed at the state level.
“Now is the time for the state to take this burden off of the shoulders of our local officials. If we are serious about property tax relief, then a state takeover of Medicaid must be a priority,” Seward said.
