Medicaid Masquerade

The Story

Photo: Kameleon007/iStock

Medicaid has blown a huge hole in the state budget. New York has always run the nation’s most expensive health-care program for the poor, but recent increases to the minimum wage have sent costs soaring. Governor Cuomo and the legislature blame other factors, but responsibility for the situation rests with them.

The Facts You Need to Know

  1. Shifty: Last year, Cuomo quietly delayed almost $2 billion in payments from March to April, thereby shifting them to this year’s budget. Read more.

  2. Wage: When passing the minimum-wage hike in 2016, Cuomo promised to reimburse providers for the extra cost–and that arrangement is now crippling the budget. Read more.

  3. Unions: Medicaid rate hikes have disproportionately benefited hospitals associated with politically connected labor unions. Read more.

“This latest crisis is entirely self-inflicted by Governor Andrew Cuomo and the state legislature.”

Bill Hammond, Empire Center for Public Policy

Twitter Take

The Past is Present

Medicaid’s Fatal Attraction By Ned Regan (Winter, 1996)

“New York’s legislators love Medicaid for the goodies it lets them dispense. Now it could destroy the city’s and state’s budgetary health.”

And in other news...

“New York State lawmakers have agreed to impose a statewide ban on most types of single-use plastic bags from retail sales, changing a way of life for millions of New Yorkers as legislators seek to curb an unsightly and omnipresent source of litter.”