Nick Reisman

To hear Gov. Andrew Cuomo tell it, the $3 billion gap in New York’s Medicaid program will be a challenge for the 2020 state budget.

“We have a reduction in federal aid. We have an increase in the labor costs. We have an increase in coverage for the program, which is a good thing. They’re all good factors, besides the reduction in federal aid, but it’s going to be a major financial issue for the state next year,” said Cuomo.

But who exactly will feel the pinch if Medicaid spending slows down or is reduced? Hospital groups already are mobilizing an effort to oppose any cuts, worried they could face the brunt of it. Still, health analyst Bill Hammond of the Empire Center says hospitals have seen an increase in funding from the program over the years.

“Hospitals in particular have seen significant revenue from Medicaid and other sources, so dialing that back a little bit shouldn’t be an existential threat,” said Hammond.

And perhaps most importantly, the question remains whether patients themselves, those of us who interact with the health care industry on a monthly or even daily basis, will be affected by any changes in Medicaid spending. Hammond says probably not.

“They’re very careful to protect the consumer. They don’t touch benefits. They don’t touch eligibility. They traditionally have gone after the compensation for Medicaid providers,” said Hammond.

But what could be on the chopping block as a result are other areas of the state budget, major items New York already spends a lot of money on to make the spending plan balance. And that includes the second largest item aside from health care: schools.

© 2019 Spectrum

You may also like

NY Health Department Asserts Cuomo Order ‘Could Not Be the Driver’ of Nursing-Home Deaths in the State

Zachary Evans The New York State Department of Health has concluded that an executive order requiring nursing homes to readmit coronavirus patients, issued by Governor Andrew Cuomo, was not the driving factor behind coronavirus deaths in the s Read More

EDITORIAL: Nursing home report requires a second opinion

It’s great that the Cuomo administration and its Health Department issued a report this week detailing the causes of nursing home deaths at the height of the state’s coronavirus outbreak. And it’s great that the department Read More

What we know (and don’t know) about NY COVID-19 nursing home deaths after DOH report

David Robinson The state Department of Health's own analysis of COVID-19 nursing home deaths has renewed politically the charged debate over how and why coronavirus ravaged the most vulnerable New Yorkers. Read More

Faced with $10B deficit, MTA says it’s eyeing cutting overtime spending

Alfonso Castillo The financial impact of the COVID-19 pandemic on the Metropolitan Transportation Authority is adding urgency to the agency’s efforts to curtail overtime numbers that critics say remain alarmingly high. The MTA said at Wed Read More

City and state officials contend with a dire future as New York reopens

Brian Pascus As New York begins to reopen from the Covid-19 lockdown, Read More

Pandemic, recession don’t bring down school budgets

Stephen T. Watson This year's school elections were delayed and then shifted entirely to voting by mail thanks to the Covid-19 pandemic, which also shut down schools here and across the country. District officials worried this new method of Read More

Here’s Cuomo’s Plan for Reopening New York

Jesse McKinley ALBANY, N.Y. — Gov. Andrew M. Cuomo on Monday presented a soft blueprint for how New York State’s economy might begi Read More

States with few virus cases get big share of relief aid

Geoff Mulvihill Alaska, Hawaii, Montana and Wyoming are not epicenters of the coronavirus pandemic. Yet these four states scored big this spri Read More


Sign up to receive updates about Empire Center research, news and events in your email.


Empire Center for Public Policy
30 South Pearl St.
Suite 1210
Albany, NY 12207

Phone: 518-434-3100
Fax: 518-434-3130


The Empire Center is an independent, non-partisan, non-profit think tank located in Albany, New York. Our mission is to make New York a better place to live and work by promoting public policy reforms grounded in free-market principles, personal responsibility, and the ideals of effective and accountable government.