Capital Region think tank proposes $3B in Medicaid savings

| Nexstar Publishing

Johan Sheridan

ALBANY, N.Y. (NEWS10) — New York could lower Medicaid costs by over $3 billion, according to 11 proposals by Bill Hammond, the director of health policy at the Empire Center for Public Policy.

The nonprofit group submitted the proposals to a Gov. Andrew Cuomo’s Medicaid Redesign Team at the Albany Capital Center on Friday. Cuomo appointed the Redesign Team on February 4 to save $2.5 billion by April 1, making up for a massive shortfall in the state budget.

Hammond outlines seven ideas that come with price tags:

  • Reduce overuse of personal assistance: $1.4B
  • Improve eligibility screening: $500M
  • Reform the Indigent Care Pool: up to $370M
  • Cap funding for minimum wage costs: $300M
  • Rescind the November 2018 rate increase: $278M
  • Limit subsidies for distressed hospitals: $143M
  • Eliminate subsidized malpractice coverage: $127M

And four that are less precise:

  • Strengthen the global cap
  • Tighten long-term care fiscal review
  • Reject new taxes
  • Reject cost shift to local government

Hammond’s proposals do not affect current beneficiaries or local governments.

The Empire Center is an independent, non-profit think tank and government watchdog group that focuses on reining in spending to improve the state.

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