Medicaid Reforms Generate Millions In Additional Savings

Carl L Marcellino

July 13, 2006

Senator Carl L. Marcellino today announced that Medicaid reforms he helped to initiate to ease the burden on local governments and property taxpayers, have resulted in significantly greater savings than originally projected. Senator Marcellino called on counties to pass along the unexpected savings to property taxpayers.

"The Medicaid reforms enacted two years ago are generating significantly greater savings for counties than we anticipated and those savings should be passed along to property taxpayers," Senator Marcellino said.

As a result of Medicaid cost containment measures and the State cap and takeover of local Medicaid expenses, Nassau County will save $24,710,838 more than originally projected in 2006 and 2007, for a total savings of $83,609,338 over those two years; Suffolk County will save $21,326,892 more than projected, for a total two-year savings of $89,981,142.

The 2005-06 State budget included measures aimed at stemming the growth of Medicaid, including a sweeping cap on the program’s cost to local taxpayers, as well as strong accountability standards aimed at checking excessive local spending growth.

In 2004, the State began a takeover of the local share of the Family Health Plus program to provide additional savings to local governments and property taxpayers.

Senator Marcellino said, "The updated data makes it clear that local governments are saving even more than projected and presenting a tremendous opportunity to provide relief for property taxpayers."