N.Y. Governor proposes $2.85B cut in Medicaid spending

New York Governor Andrew M. Cuomo unveiled a proposed 2011-2012 Executive Budget that, if passed as is, would cut Medicaid spending in the state by $2.85 billion for 2011-12.

The proposed budget, according to Cuomo’s office, seeks to eliminate a $10 billion deficit without raising taxes or borrowing and conform the state budget process to “fiscal realities.”

“Following years of unsustainable growth, the budget reflects a year-to-year All Funds decrease of nearly $1 billion ($982 million), or two percent, in Medicaid spending in 2011-12,” Cuomo stated.

According to the governor, the 27 members of the Medicaid Redesign Team will conduct a review of New York’s Medicaid Program and report its findings and recommendations for costs reductions to his office by March 1 for consideration in the budget negotiation process.

“In addition, these proposals will limit future Medicaid program state funds growth to the 10-year rolling average of the medical care component of the consumer price index (currently 4 percent),” Cuomo added.

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