What would your bottom line be like if you didn”™t have to pay for medical insurance? That in effect is what counties around New York are asking themselves as the state Association of Counties (NYSAC) creates a commission to prepare for what could be the opening steps in a state takeover of Medicaid costs.
New York is the only state in the nation that requires counties to substantially fund the Medicaid program at the local level. Currently, counties pay more than $7 billion annually for the state”™s Medicaid program, roughly 14 percent of the total cost. That figure grows by close to $200 million a year. Overall, the convoluted Medicaid program in New York state costs about $52 billion a year in total funds.
Now, counties hope to help hold the line on costs, while extricating their property taxpayers from helping foot the bill for the program.
NYSAC President Thomas J. Santulli (Chemung County executive) on July 15 announced the creation of a county-led commission to transition Medicaid administration from counties to the state, the first step in the potential state takeover of Medicaid in New York state.
“Medicaid is the single largest cost for counties and county property taxpayers in New York,” said Santulli. “We believe the Federal Healthcare Reform Act lays the perfect foundation for a full-blown state takeover of the entire Medicaid program. Let”™s take property taxpayers out of the financing equation for the state”™s Medicaid program.”
Medicaid administrative costs represent less than 2 percent of overall program costs. Currently, each county and New York City administer the publicly funded health care insurance program within their jurisdictions. The state budget includes language directing the state to take over those administrative costs and responsibilities, including the staff, equipment and infrastructure that facilitate this process.
“Counties want nothing more than getting out of the Medicaid business once and for all”, said NYSAC Executive Director Stephen J. Acquario
The commission will be empowered to study the county role in administering Medicaid as the first step of the takeover process and make recommendations to the state Department of Health, which will lead the planning process at the state level.
