New Governor of New York Planning to Cut Medicaid

Andrew Cuomo, the new Democratic Governor of New York, plans to reduce state Medicaid spending by $2.1 billion, which amounts to more than $4 billion in total Medicaid reductions when federal matching funds are included, according to a report by the Wall Street Journal.

The cut mitigates new state burdens in Medicaid spending with the expiration of enhanced federal Medicaid funding for the states in mid-2011. In New York, the state's share of Medicaid costs will grow by more than $3 billion.

To further alleviate the burden, the Cuomo administration will likely ask HHS for a Medicaid waiver. Mr. Cuomo has said he intends to overhaul the Medicaid program but has revealed few specifics of his plan.

New York's Medicaid managed-care model, launched in the 1990s, covers about 65 percent of enrollees but accounts for 17 percent of Medicaid spending. Some of the most costly Medicaid populations, such as nursing-home residents, aren't enrolled in the managed care model.

Read the Wall Street Journal report on Medicaid.

Read more coverage of state cuts of Medicaid programs:

- Arizona Hospitals Prepare for Cuts to State Medicaid Program

- New GOP Governors Want More Control of Medicaid From Congress

- Mississippi Governor Made $1.6M Medicaid Cut During FY 2010


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