Medicaid Block Grants Would Save NY Taxpayers $32 Billion Dollars Without Affecting Services To Present Beneficiaries

Letter to Congress:

   CuomoTARP.blogspot.com         BY FAX                         5/12/2011
               To:  Darrell Issa, Chair House Oversight and Government Reform; Lamar Smith, Chair House Judiciary; Patrick J. Leahy, Chair Sen. Judiciary; Charles E. Grassley, Sen. Judiciary; Paul Ryan, Chair House Budget; Harold Rogers, Chair House Appropriations; Kent Conrad, Chair Sen. Budget;  Daniel K. Inouye  Chair Sen. Appropriations

Re: Save $200 billion at federal level by block granting Medicaid money to NY and not harm nor eliminate services for poor NY Medicaid recipients, while ending massive over-billing fraud by NY State.

Re: Block granting will save local NY property taxpayers $8 billion, because NY splits its Medicaid expenses 50/50 with the Counties.

Dear Sirs:
      This blog has reported:   "New York spent $2,903 per person on Medicaid in 2010 — a third more than any other state.   The U.S. average is $1,364.   Nevada spent the least: $666 per person."  That means that if Medicaid is block granted to the States at the National average, NY will receive less and must fund its Medicaid corruption out of its budget and tax revenue. New York's Medicaid is capped at $60.4 billion. So calculating, we have $28.38 billion (1,364 divided by 2,903 x $60.4 billion) as block grant eligible total Medicaid expense.  Thus, New York would reduce its total Medicaid expenditure by $32 billion ($60.4 billion - $28.4 billion) of fraud and/or false or excessive billing.


       New Yorkers cannot afford to pay its average cost of all government benefits in New York at $9,442 per person.  New York has the highest state and local debt of $31,536 which must be added to USA debt per person of $44,805.   For New Yorkers, it's a combined local, State and Federal debt of $76,341 per person.  link 1

 
    The following newspaper reports show many billions of dollars of fraudulent criminal taking of federal funds by NY State.

    1. "Daily rate for Medicaid patients tops $5,000 in nine institutions in NY and was described as a "cash cow for the State."   "Introne, Gov. Andrew Cuomo’s liaison, said state officials were working with the U.S. Centers for Medicare and Medicaid Services to analyze and resolve the matter."
http://lonelyconservative.com/2011/04/new-yorks-per-diem-medicaid-rate-four-times-higher-than-other-states/  link 0 
    2.It was reported in Wall Street Journal that, "The state spends $700 million a year to house about 1,400 disabled people in the facilities. But it bills Medicaid more than three times that amount. By taking advantage of federal matching funds, the state pockets approximately $1 billion extra every year—and uses it to subsidize other areas of the budget."

http://online.wsj.com/article/SB10001424052748704013604576247300936116610.html?mod=WSJ_NY_LEFTTopStories   link 1

   And 3.  $22 billion dollar fraud as NYS Keeps Getting Caught For Committing Fraud, But There Never Seems to Be Any Consequences
http://governmentrico.wordpress.com/2010/09/20/nys-22-billion-dollar-medicaid-fraud-nys-health-department-and-research-foundation-for-state-university-of-new-york-suny/   link 2

     Using #2 above as an example, we determine that NY spends per these Medicaid recipients: $500,000 ($700 million divided by 1,400 people).  If instead, these recipients were in a NY nursing home, where the daily rates range from a high of $376 to a low of $253 (link 3),  and a full time aide was assigned for two eight hour periods at $30 per hour total cost for $480 a day.  The combined cost per recipient would be a maximum of $856 per day or $312,440  a year.   But most recipients would not need so much attention and the Medicaid federal reimbursement rates for NY nursing homes are much lower than the average nursing home rates used.

      Summary for this example:  NY bills Medicaid for $1.5 million per these Medicaid recipients for services which could be better supplied at a maximum $312,440 per recipient or at one fifth the cost.

      Worse still for NY residents, NY State uses this excess Medicaid billing to bill its Counties and ultimately their property taxpayers for these fraudulent and excessively expensive services, which do nothing for the Medicaid recipient, but do enrich the State's bloated government.

   Conclusion: Block granting Medicaid to the States would be a giant benefit for NY taxpayers, have no effect on services provided to Medicaid beneficiaries and would substantially reduce Federal expenditures by $16 billion dollars a year for just NY State.  A rough estimate could be made by using one half ($8 billion) of the NY share of excess of $16 billion federally paid expenditure and multiplying it by half the number of states (25 states would be over the median Medicaid reimbursement rate).   The federal government would save a minimum $200 billion per year or about a minimum 14% of this year's projected deficit ($1.4 trillion) without harming Medicaid recipients.

    And collaterally, you would save the NY property taxpayers $8 billion dollars a year, which is approximately 45 percent of property tax levy  (link 4)     While at the same time, benefiting 25 States, including California, which would be rewarded for their honest services

                                     Sincerely yours,

                                    CuomoTARP.blogspot.com

CC: others

link 0
http://lonelyconservative.com/2011/04/new-yorks-per-diem-medicaid-rate-four-times-higher-than-other-states/
link 1
http://online.wsj.com/article/SB10001424052748704013604576247300936116610.html?mod=WSJ_NY_LEFTTopStories
link 2
http://governmentrico.wordpress.com/2010/09/20/nys-22-billion-dollar-medicaid-fraud-nys-health-department-and-research-foundation-for-state-university-of-new-york-suny/%20
link 3
http://www.health.state.ny.us/facilities/nursing/estimated_average_rates.htm
link 4
http://uticadailynews.com/election_releases/17474-Hawkins-Outlines-Plan-Reduce-Local-Property-Taxes-for-State-Takeover-Medicaid-More-State-Funding-for-Schools-Opposes-Property-Tax-Cap.html