Vol. 75/No. 11      March 21, 2011

The panel appointed by the governor is made up of 27 state legislators, representatives from hospitals and nursing homes, and the health care workers’ union, Service Employees International Union (SEIU) 1199.

The Medicaid system currently provides health services to nearly one in four New York State residents. Enrollment spiked during the recession, growing by an average of 5.4 percent in 2009. In 2010 enrollment was projected to increase by 6.6 percent.

The main aim of the new plan is to move most of the 4.7 million New York Medicaid recipients to private HMO programs, which place more limits on availability of some medical services.

The proposals also include a 2 percent across-the-board cut in Medicaid payments to health-care providers and a 4 percent cap per year on future raises in state spending. To remain under the cap, health-care providers would need to find ways to reduce spending themselves or face future cuts in rates imposed by the state. Many hospitals and nursing homes say the changes will likely mean layoffs and reduced services.

The Medicaid Redesign Team decision “resulted in pain, but it was a shared pain,” said George Gresham, president of SEIU 1199 Healthcare Workers East and a member of the panel, according to the New York Times.  
 
 
Front page (for this issue) | Home | Text-version home