New York City Seeks State Help To Cover $4 Billion in Expected Medicaid Costs

With New York City's Medicaid costs expected to escalate over the next few years, city officials next month plan to ask the state to help eliminate some of the cost burden, the New York Times reports. The federal government now pays 50% of the state's Medicaid costs, but state law requires that county and city governments cover another 25% of the costs. Of the $4.3 billion paid yearly by all local governments, New York City pays $3 billion. The Times reports that the state has expanded its Medicaid program over the past few years, and it is now one of "the most generous in the country." Although the city's requests for state money are routinely "unheeded," officials hope state lawmakers will approve a reduction in the city's Medicaid services and tightened eligibility requirements. The Times reports that city officials also may ask the state to cut payments to providers. City officials also are planning to "band together" with the New York State Association of Counties to present a uniform argument for Medicaid cost relief in the state capital. For its part, the association is asking the state to cap the counties' Medicaid payments so if new benefits are added, the state and federal government would cover the costs (Steinhauer, New York Times, 11/27).