New York City Lawmakers and Advocates Call on Governor to Extend Temporary Medicaid Benefits for Residents Left Uninsured After Sept. 11

A coalition of state lawmakers and health advocates joined New York Assembly member Richard Gottfried (D) on Jan. 7 at a press conference to urge Gov. George Pataki (R) to extend temporary Medicaid coverage for thousands of New York City residents who lost their health insurance following the Sept. 11 attack on the World Trade Center, Newsday reports. The Disaster Relief Medicaid program is open to all low-income city residents, but saw a surge of applications -- about 220,000 -- following the attacks. With coverage set to expire at the end of the month for those who signed up in September, Gottfried called on Pataki to "implement a transition plan" so that current participants can permanently enroll in Medicaid. "There is no way that tens of thousands of people enrolled in Disaster Relief Medicaid can possibly complete the necessary paperwork to transition to regular Medicaid or Family Health Plus [the state's Medicaid expansion program for low-income adults] by January," he said. According to Newsday, a "crucial component" of the disaster relief plan is the "streamlined" one-sheet application, instead of the normal eight-page form. Newsday reports that approval "is usually automatic and coverage begins the same day." Critics of the relief program have said that some applicants who earn too much money to qualify are "abusing the program," which has a monthly maximum income limit of $1,957 for a family of four. But Jim Tallon, president of the United Hospital Fund, said the new application process has "removed the bureaucratic obstacles" that prevented New Yorkers from receiving health coverage in the past, and he and other health advocates are requesting that the state make the shorter application process a permanent feature of both Medicaid and Family Health Plus (Ramirez, Newsday, 1/8).

Pataki Negotiates
Meanwhile, Pataki is negotiating with legislators and the state's largest union for health care workers on a proposal to avoid cuts to general Medicaid reimbursements, which have been under consideration. The plan would also give New York health care workers raises in pay and benefits, the New York Times reports. Under the proposal, possible cuts to the state's $30 billion Medicaid program would be obviated by a $1 billion "windfall" that the state expects to receive from the conversion of Empire Blue Cross and Blue Shield from a not-for-profit to a for-profit company, along with a raise in cigarette taxes. In addition, some of this money would go to hospitals, nursing homes and home health care companies, who would use the funds to increase salaries and benefits for employees. The Times reports that Pataki also plans to ask Congress to "shoulder a slightly bigger share of Medicaid costs and raid some pools of unspent revenues from surcharges on health insurance" (McKinley, New York Times, 1/8).