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Press Releases

For Immediate Release: April 8th, 2004

Contact: Contact: Jordan Isenstadt (c) 516.991.3842 (w) 212.490.9535 (f) 212.490.2151

 

***PRESS RELEASE***

 

State Senator Liz Krueger Calls for Major Medicaid Reforms to Preserve Health Care Coverage for Poor and Elderly New Yorkers

 

New York, NY – Claiming that New York’s Medicaid system is “inefficient, too expensive and unaccountable,” State Senator Liz Krueger (D-Manhattan) today announced her support of major new Medicaid reforms, backed by the Senate Democratic Minority.  The proposed Medicaid reforms aim to reduce the program’s costs, while increasing availability to more uninsured New Yorkers.

 

“If we do not reform Medicaid, I’m concerned it will not exist as we now know it for future generations of New Yorkers,” said Senator Krueger. “That’s how important this issue is today.  Medicaid costs in New York have jumped 68% since 1995.  Obviously, there is no way that the system can continue to grow at such an alarming rate.  We, as government officials, have a responsibility to take care of those least able to take care of themselves.”

 

Senator Krueger noted that Senate Democratic Leader David Paterson has proposed several innovative reforms to help save Medicaid.  “I commend Senator Paterson for bringing a realistic and common sense approach to Medicaid reform and demonstrating that we can bring fiscal responsibility and accountability to the program while providing high quality, cost-effective health care to every New Yorker in need,” stated Senator Krueger.

 

Senator Krueger noted the proposed Federal and State Medicaid reforms would save New York over $27 billion over the next five years. The State changes alone would save New York $3.2 billion over five years, and it would save New York’s counties and localities $400 million in 2004-5 and at least $6.5 billion over five years.  The reforms would:

 

  • change New York’s federal reimbursement rate from 50% to 57% based on state poverty rates rather than per capita income to make sure New York gets its fair share of federal Medicaid funds;
  • institute an immediate three-year cap on local Medicaid costs, saving counties $6.5 billion over five years;
  • create a Preferred Drug List with strong consumer protections;
  • establish a multi-state bulk purchasing agreement in order to obtain discounts from Medicaid pharmaceutical companies and help keep prescription drugs affordable for New Yorkers;
  • persuade the federal government to reimburse New York for providing health care services for legal immigrants; and
  • move the state away from institutional care and increase home care services for the elderly and disabled, saving New York hundreds of millions of dollars annually.

 

“What is clear about the need to reform Medicaid is that there must be good faith negotiation by the Federal government,” remarked Senator Krueger. “For example, New York’s reimbursement rate is the lowest of any state in the country. The formula using per capita state income is not truly reflective of New York and must be replaced by a formula that takes poverty rates into account.  The federal government should also help ease New York’s fiscal burden by reimbursing the State for health care coverage of legal immigrants.  It is simply poor public health policy that refuses to pay for preventive care, thus resulting in higher costs for emergency health care.”

 

“Finally, with New York facing a multi-billion budget shortfall over the coming years and several counties declaring a fiscal emergency because of the soaring mandated costs of Medicaid, we must look at a fundamental restructuring of the present Medicaid system,” said Senator Krueger. “Most importantly, the reforms presented here do not in any way compromise the delivery of quality health care services to New York’s poor and elderly.”

 

 

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