New York Gov. Spitzer Proposes $1.2B in Cuts to Health Care Programs, Expansion of Children’s Health Insurance Program
New York Gov. Eliot Spitzer (D) on Wednesday announced a $120.6 billion budget proposal for fiscal year 2007-2008 that would expand health insurance to children and reduce spending on existing health care programs by $1.2 billion, the New York Times reports. The cuts on spending for health care programs would partially offset spending increases in other programs, such as education and tax cuts. Spitzer's budget would restrain growth in Medicaid spending to 1.7%, compared with 8% in recent years (Hakim, New York Times, 2/1). The proposal would:
- Freeze Medicaid payment to hospitals and nursing homes for one year, for savings of $182 million (Perez-Pena, New York Times, 2/1);
- Save $240 million by enrolling seniors who are in the state prescription drug assistance program into the Medicare drug benefit, reducing reimbursements to pharmacies and improving the state Preferred Drug Program;
- Insure an additional 400,000 children in the state's Child Health Plus health insurance program for low-income children by raising annual family income limits from 250% of the federal poverty level to 400% of the poverty level;
- Designate $3.5 billion for HIV/AIDS programs, $95 million for antismoking initiatives and $29 million for stockpiling treatments for use in a pandemic;
- Restructure payments to hospitals for graduate medical education and indigent care; and
- Increase the staff in the office of the Medicaid inspector general by 157, including 100 auditors, to reduce fraud, for savings of $400 million (Ochs, Long Island Newsday, 2/1).