Assemblyman Phil Palmesano (R,C,I – Corning) is cosponsoring legislation that would reinstate pertinent Medicaid application requirements, including an initial face-to-face interview and use of a resource asset test. Both measures would enhance cost savings and reduce Medicaid fraud.

In 2009, the New York state budget included language which repealed the resource asset test and face-to-face interview for Medicaid eligibility. These two functions helped prevent people from hiding their resources and ensured that people were not defrauding the system by receiving unwarranted health insurance paid for by New York taxpayers, Palmesano explained.

New York’s Medicaid costs more than $53 billion annually and, last year, Medicaid fraud alone cost New York taxpayers $5 billion, noted Palmesano. Moreover, despite the fact that New York has 17 million less residents than the state of California, our state Medicaid system costs 24 percent more than California’s program.

“Medicaid fraud and abuse costs taxpayers billions of dollars annually. Our system is bloated and rife with waste,” said Palmesano. “Medicaid is a powerful safety net for those truly in need. However, there are those out there who would defraud the system no matter the cost to the rest of our state’s taxpayers.”

“Resource asset testing and face-to-face interviews have been proven, effective tools in stopping people from taking advantage of the system,” Palmesano added. “And reinstating these requirements would provide us with a method to combat fraud.”