New York governor adjusts Medicaid reduction plans amid federal budget proposal

New York Gov. Andrew Cuomo is adjusting his Medicaid funding proposal after additional cuts were made in President Donald Trump's budget plan for fiscal year 2020, according to The Wall Street Journal.

Mr. Cuomo last month revealed a revised budget that proposed reducing state Medicaid spending by $550 million in the upcoming fiscal year. The reduction faced pushback from hospitals, which have protested amid concerns about the potential effects of the cuts on healthcare services.

The governor's office is now indicating a different plan.

Mr. Cuomo's budget director, Robert Mujica, said during a news conference that President Trump's proposed budget plan would eventually reduce federal Medicaid funding to the state by 20 percent, according to the report. That includes funding for New York State's Essential Plan coverage option.

Mr. Mujica said the additional planned Medicaid reduction "changes the dynamic significantly," and the governor's office has decided to undo the state's proposed reduction. He did not provide details about where the additional $550 million would come from.

Kenneth Raske, president of the Greater New York Hospital Association, welcomed the decision, but said state-focused ads by the Healthcare Education Project — jointly funded by the hospital association group and the 1199SEIU union — would continue.

"I welcome the governor's rethinking," Mr. Raske told The Wall Street Journal. "In Albany, nothing's over until it's over. And even then it's not over."


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