NY Governor’s Plan for Trimming Medicaid Costs within Budget Nets Early Win

Starting with a capped proposal on Medicaid spending, an advisory committee appointed by NY state governor Andrew Cuomo has approved reductions in services covered by the entitlement. Seemingly agreed to overnight, the vote on spending cuts came after almost two months of hearings attended by the state’s Medicaid budget director.

Among the cuts approved: limiting awards in medical malpractice cases (amounts up to $250K), shifting some beneficiaries to Medicaid managed care plans, and perhaps most importantly, a cap on spending that will affect how hospitals and clinics deliver service to beneficiaries (with the potential for increased rolls).

The budgetary approval (which spares cuts in payments to providers) will go to the legislature. If passed, the Medicaid deal will give NY greater power in regulating the growth of Medicaid spending in the state — something Cuomo says will result in saving the nation’s most expensive Medicaid system billions while improving its delivery over the next three to five years.