Hochul’s Medicaid Funding in Proposed Budget Misses the Mark

Legislative Column by Assemblyman Ken Blankenbush (R,C-Black River)

The topic of Medicaid funding has been relatively alarming lately, as it is crucial for many families throughout the state. Medicaid is an important health care option for pregnant women, single individuals, low-income families or individuals who are blind and/or disabled.Except in the cases of blind or disabled individuals, each year, the level of Medicaid funding changes depending on different eligibility qualifications. The system is funded federally, through the state and by local governments under the prior agreement that costs were split 50% federal, 25% state and 25% local, but over time, that slowly shifted to 60% federal, 31% state and 9% local. Today, New York is ranked 2nd behind California in our total Medicaid funding with roughly 7.5 million enrollees as of last year alone.

In Gov. Hochul’s proposed 2023-24 State Budget, she added what is called a Medicaid Global Cap, in other words, starting this year, $625 million in federal funds of what would typically go toward the health care program, will now be allocated in other areas of the state budget. Local counties, especially small ones in the North Country, will have major unforeseen costs they will be required to source themselves without the help of the state.

With the federal cut to the Medicaid program, the pockets of hard-working New Yorkers could potentially see tax hikes, which my colleagues and I fight incredibly hard against while in Albany. Residents are already struggling at the grocery stores, at the gas pumps, and in every aspect of their daily lives.

The purpose of Medicaid is to offer state assistance to those unable to afford their medical bills and to elderly residents. Over time, it has gradually reverted to local governments paying the offset costs, which in turn comes out of the pockets of property taxpayers, making New York less and less affordable. Because of Gov. Hochul’s proposal, many of my colleagues and I proposed legislation that will require the Department of Health to pay 10% of the non-federal share for services required by state law as well as legislation to prevent Medicaid fraud.

I encourage everyone to follow the budget proposal for 2023-24 and the cuts Gov. Hochul plans to make that will directly impact every taxpayer in this state. We cannot afford higher taxes and local governments should not be held accountable for hefty health care costs.