Proposed Medicaid cuts in New York Executive Budget

ALBANY, N.Y. (NEWS10)— In Governor Hochul’s $233 billion-dollar proposed executive budget, the state funded Medicaid program will total $35.5 billion dollars.

“Medicaid is a really, really important program to a lot of New Yorkers. It is growing quite rapidly though,” explained New York State Department of Health Commissioner, James McDonald. “We have to be thoughtful about how this program is sustainable and live within the global cap.”

Because of rapid growth, cuts are proposed to happen.

“Over the last three years, our Medicaid spending is up 40% and we are trying to find ways now to save over a billion dollars in Medicaid,” said Hochul at her budget unveiling.

Earlier this week, the health commissioner spoke on the matter.

“The governor’s approach is to work the legislature to see if we can find cuts, hopefully on things that won’t negatively impact people. It’s about partnership. It’s about trying to find savings together.”

One proposal would discontinue wage parity for a program that provides services for those needing help with everyday activities. Cutting the supplemental pay benefitf or home care aids could save the state $200 million dollars.

“That program has escalated financially with intermediaries, just jumping in the mix, which has really driven up costs,” explained Assemblyman John McDonald.

Assemblyman McDonald said this will be a hot topic throughout the budget process. Amy Paulin, the Assembly’s Heath Chair, weighed in.

“We are going to have to take a hard look at ways to restore some of the more severe cuts,” said Paulin.

The finalized state budget is due on April 1. 

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