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.
The House Republicans’ American Health Care Act would jeopardize coverage for hundreds of thousands of New Yorkers and cost the state government billions of dollars. On the whole, however, it’s far less disruptive than previous GOP alternatives to Obamacare.
The Medicaid “block grant” being proposed by House Republicans would be far less costly to state governments than previously projected under a draft Obamacare replacement bill that became public on Friday.
HCRA, the ACA and NY's Coming Healthcare Storm
Governor Cuomo’s warnings about how repealing the Affordable Care Act would affect New York should be read with caution.