New York Health Department Proposes 2% Cut to Medicaid Payments, 4% Cap on Annual Spending Increases

A proposal by the New York State Department of Health would cap annual Medicaid spending increases at 4 percent and cut Medicaid payments to all healthcare providers by 2 percent, according to a New York Times report.

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The 2 percent cut represents $345 million in payments to healthcare providers in the state.

The state budget calls for a $2.85 billion reduction in Medicaid spending to close a $10 billion state budget gap. Gov. Andrew Cuomo is hoping to build the support of healthcare providers around the cuts by including their representatives in a committee that will identify areas of savings for the program.

The committee is expected to release its recommendations on Tuesday, according to the report.

Read the New York Times report on New York Medicaid.

Read more coverage on Medicaid:

Arizona Senate Committee Votes to Drop out of Medicaid

Texas Eyes Medicaid Overhaul to Allow ACO-Like Arrangements

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