Bloomberg News: “New York’s Medicaid Budget Is Bleeding; Some Want Cash Infusion”
“Cuomo seeks program revamp”
“Some call for tax hikes to help fill gap”
Raleigh, N.C. — Bloomberg News recently reported on the multi-billion dollar budget gaps created after New York expanded its Medicaid program.
New York’s experience is highly relevant as North Carolina faces a seven-month budget standoff over Governor Roy Cooper’s insistence on Medicaid expansion. Below are excerpts from the story:
“New York is looking to overhaul its Medicaid program, which could mean cuts to hospitals, doctors, nursing homes, and other providers as the state aims to fill a projected $6.1 billion budget gap.
“The cost of the safety net health-care program is a large portion of the deficit…
“Reimbursement cuts have ‘the potential to jeopardize the stability of the marketplace,’ Eric Linzer, president and CEO of the New York Health Plan Association, said. The 29 plans his group represents have been operating on thin margins for the past few years, he said.
“To help fill the current hole, the state plans to delay $2.2 billion in Medicaid payments into fiscal year 2021 and make the delays permanent, effectively pushing debt into the future in perpetuity, according to the state’s mid-year budget report.
“The state has yet to release details on how it plans to close the remaining approximately $1.7 billion gap before the current fiscal year ends, other than saying it will enact cost-saving measures. Savings may include reductions to rates paid to providers and health plans, as well as discretionary payments, according to the budget office.”