GOVERNOR CUOMO ANNOUNCES ON-TIME PASSAGE OF HISTORIC, TRANSFORMATIONAL 2011-12 NEW YORK STATE BUDGET
Redesigning Medicaid and Health Care
Total Medicaid spending including federal, state and local spending of $52.6 billion represents a decrease of $337 million, or minus 1 percent. Future growth in Medicaid will be limited to the 10-year rolling average of the Medical CPI, currently 4 percent. As with education, the budget includes a two-year appropriation.
The budget includes a cap of $15.3 billion on Department of Health Medicaid state expenditures, which represent the largest and one of the fastest growing component of state spending.
The budget process brought together health care providers, labor, government and other Medicaid stakeholders to form Governor Cuomo’s Medicaid Redesign Team (MRT). Tasked with identifying ways to provide critical health care services at lower costs and control unsustainable growth, the MRT recommended a series of proposals to fundamentally restructure and reform New York extensive Medicaid program.
Overall, the budget implements a majority of the MRT recommendations. The budget reflects $2.3 billion in spending reductions supplemented by $425 million in lower-than-expected expenditures to achieve the Governor’s original savings target of $2.85 billion.
The budget implements significant reforms including a major expansion of patient-centered medical homes, better control of home health care services, and care management for individuals with complex and continuing health care needs. New models of integrated care, such as Accountable Care Organizations, will help assure long-term control of health care spending.
Savings will be assured by an overall spending cap, enabling the Commissioner of Health to make additional savings actions during the year, if necessary. Here is the briefing book by subject.
http://publications.budget.state.ny.us/eBudget1112/fy1112littlebook/index.html
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