Morning Briefing
Summaries of health policy coverage from major news organizations
With Budgetary Crisis Looming, N.Y. Governor Aims To Cut Billions From What He Deems As Main Culprit: Medicaid
The New York Times: How To Fix A $6.1 Billion Budget Hole? Attack Health Care Spending
Facing the worst budgetary crisis since the early days of his decade-long tenure, Gov. Andrew M. Cuomo on Tuesday unveiled plans to seek billions of dollars in savings from what he described as the primary culprit: runaway Medicaid spending. The state’s enormous Medicaid bill is a result of both its size — with more than six million New Yorkers enrolled — and generous array of benefits, resulting in an inexorable rise in cost. (McKinley and Ferre-Sadurni, 1/21)
The Wall Street Journal: Cuomo Trims Spending In Budget Proposal To Plug $6.1 Billion Deficit
The governor called for the creation of a Medicaid Redesign Team, similar to a panel he formed in 2011, to identify $2.5 billion in savings in the program before the current fiscal year ends on March 31. The governor is proposing a tax cut for small businesses that will eventually total $39 million, and is resisting calls from unions and progressive groups to raise income taxes. The state revised its revenue projections upward by $2 billion in the budget proposal, citing stronger-than-expected income-tax receipts. (Vielkind, 1/21)
In other news on Medicaid —
The Hill: Trump Poised To Kick Off Election-Year Fight Over Medicaid
The Trump administration is poised to kick off a major partisan feud over Medicaid in 2020, as officials are reportedly planning to soon introduce a way for states to block grant Medicaid money. The guidance, which The Wall Street Journal said could be released as early as this month, will test the Trump administration’s ability to allow states the flexibility to make drastic changes to Medicaid. Imposing block grants in Medicaid has long been a major conservative goal, and with time running down in President Trump’s first term the administration is facing pressure to come up with health care victories, even though some argue the policy may not be legal without congressional approval. (Weixel, 1/22)
The Associated Press: Louisiana Medicaid Managed-Care Contract Awards Thrown Out
Multibillion-dollar Medicaid contracts awarded by Gov. John Bel Edwards' administration have been scrapped by Louisiana's chief procurement officer, who determined the health department mishandled the bid process for deals to provide health services to 1.5 million people. Louisiana's state procurement officer Paula Tregre said the health department failed to follow state law or its own evaluation and bid guidelines in determining which private companies should receive contracts to manage care for most of Louisiana's Medicaid patients. (Deslatte, 1/21)
