Federal Medicaid Block Grants Will Destroy Cuomo's Budget By $47 Billion Dollars

         The party's over.

    At least $46.8 billion dollars will be added to New York's Medicaid expenditures, when Congress in the next budget year beginning in October changes to a block grant for Medicaid as proposed in the next federal budget, and California will support block grants for Medicaid.

      Last year's New York State's share of Medicaid expenditures was $13.8 Billion and the cap on next year's expenditure will be $15.1 Billion (+9.4%), which is matched by an equal contribution of $15.1 billion by NY Counties.

Here are the Medicaid comparisons by State.
Medicaid Cost Per Person Served, 1998
(Red States less than half New York's cost)
New York ~  $8,961
California $2,386
Washington $2,563
Oregon $3,652
Virginia $3,740
Florida $3,607
Texas $4,419
Illinois $4,435
Delaware $4,440
Michigan $4,494
Ohio $5,346
Massachusetts $6,870
Wisconsin $5,457
Pennsylvania $5,808
New Jersey $6,856
Rhode Island $6,603

       If the federal Medicaid block grant rate is at the Texas rate per recipient (Texas $4,419), New York's Medicaid total Federal Reimbursement (State +County) will be reduced ($4,419 divided by $9,861 x $30.2 billion) to $13.6 Billion.  But, New York's total predicted Medicaid expenditure (Federal+State+County) cap was $60.4 billion, or New York needs to find an additional  ($60.4-$13.6)  $46.8 billion dollars.  And New York will find no sympathy or support from California for replacement with Medicaid block grants, as California will gain tremendously due to California's $2,386 lower rate.

      Now add that $46.8 billion to all the delusional revenue predictions in Cuomo's budget.    Will that  additional $2,412 per person ($46.8 billion divided by NY population of 19.4 million) or $9,648 for a family of four be funded with new taxes or added to the New York's Debt per person including local debt of $24,195?    Where will the Counties get their increased share? And this will be repeatedly added in future years.

Oh, somewhere in our favored land the sun is shining bright;

The band is playing somewhere, and somewhere hearts are light,

And somewhere men are laughing, and somewhere children shout;

But there is default in Albany — mighty Cuomo has struck out
link to poem