Cuomo accepts recommendations from the Medicaid Redesign Team

In a press release issued by the Governor’s office they state – “Governor Andrew M. Cuomo today accepted a report from the Medicaid Redesign Team which meets the Governor’s Medicaid spending target contained in his 2011-2012 budget by introducing a global cap on State Medicaid expenditures of $15.109 billion. The report included 79 recommendations to redesign and restructure the Medicaid program to be more efficient and get better results for patients.

New York spends more than twice the national average on Medicaid on a per capita basis, and spending per enrollee is the second highest in the nation. At the same time, New York ranks 21st out of all states for overall health system quality and ranks last among all states for avoidable hospital use and costs. Unfortunately years of attempts to address the problem have been unsuccessful…

The recommendations submitted today to Governor Cuomo meets the Governor’s budget target by introducing a global cap on State Medicaid expenditures of $15.109 billion through a variety of mechanisms, including:

Proposals that would reform the Medicaid payment and program structure and generate $1.138 billion in total state savings
Eliminating the permanent law statutory cost drivers which generate $186 million in state savings
Implementing a two-percent across-the-board rate reduction to generate $345 million in savings
Prepaying certain Medicaid payments to leverage additional enhanced Federal matching funds made possible under ARRA, which generates a $66 million benefit
Industry-led cost containment initiatives totaling up to $640 million in savings, representing an unprecedented partnership between the state and its healthcare industry. The Medicaid program will be subject to a contingency reduction if this goal is not met

To read more of the Governor’s release click here.

To read reaction in the media from across the state click on the links below.

Gov and health bigs forge Medicaid deal (NYPost)

Panel recommends cap on Medicaid expenses (BinghamtonPress)

Health panel pares $2.3B (AlbanyTimesUnion)

Medicaid task force gets some good news (BuffaloNews)