New York would pay a price for running a high-cost Medicaid program if the Senate GOP health plan becomes law.
A federally mandated state takeover of local Medicaid costs would likely set up a three-way fiscal tug-of-war between upstate counties, downstate suburbs, and New York City.
One tantalizing idea emerged during the debate over repealing “Obamacare” — the Collins-Faso amendment to the now-pulled American Health Care Act.
There have been a lot of conflicting claims about how the House GOP health plan – due for a vote today – would affect New York State. Here is a fact-check for some of them.
Federal “block-granting” of Medicaid could have outcomes ranging from a multi-billion dollar gain to a multi-billion loss for New York’s $63 billion program, depending on how such a reform is designed, according to an analysis by the Empire Center’s health policy director, Bill Hammond.
The uproar over proposed federal legislation mandating a state takeover of county Medicaid costs inspires a thought experiment: What if the mandate included New York City?
Reform in the shape of a block grant would replace the current system of open-ended matching aid, which has been blamed for encouraging overspending and gamesmanship as some states sought to maximize their federal funding. A prime example of the phenomenon is New York, which operates one of the costliest Medicaid programs in the country.
A mandated state takeover of local Medicaid costs, added to the House GOP health bill by U.S. Reps. Chris Collins and John Faso, promises relief for property taxpayers across New York. However, some counties stand to save more than others.