Unshackle Upstate Calls for Creation of a Task Force to Overhaul the State's Medicaid Program

At a March 10 news conference in Albany, Sandy Parker, president and CEO of the Rochester Business Alliance, joined the Unshackle Upstate coalition and called on the Governor and Legislature to include in the 2009-10 state budget the creation of a Temporary Commission on Medicaid Reform that would make recommendations for widespread improvements and cost reductions in that medical insurance system.

With $11 billion in enhanced federal Medicaid reimbursement (FMAP) coming to New York over the next two years, the state's elected officials have a golden opportunity to meaningfully reform New York's Medicaid program to bring it back in line with the rest of the country. Currently, New York spends $2,283 per capita on Medicaid, more than any other state - and twice the national per capita average of $1,026.

"This historic infusion of federal Medicaid reimbursement presents New York with a once-in-a generation opportunity that cannot be wasted," said Brian Sampson, executive director of Unshackle Upstate, a coalition representing 45,000 employers and more than 1.5 million workers. "It is imperative that the state use the $11 billion in FMAP funding as a bridge to reform our costly Medicaid system once and for all."

Unshackle Upstate reaffirmed its support for Medicaid reform in the 2009-10 budget, and applauded Governor David A. Paterson for taking the lead in proposing Medicaid reimbursement reform, and for insisting that the additional FMAP funding must be tied to fundamental Medicaid reform. However, Unshackle Upstate strongly believes that the final legislation that comes out of the current round of Medicaid budget negotiations should be just the first step in a multi-year effort to invest the FMAP funding to produce future savings for the state.

Unshackle Upstate is calling for the creation in the final State budget of a Temporary Commission on Medicaid Reform to recommend systematic reforms that will help keep Medicaid spending flat in FY 2010-11 and achieve additional long-term state savings, while promoting high-quality, cost-effective health care. To ensure adoption of the Commission's reforms, Unshackle Upstate is calling on the Governor and Legislature to expressly condition - and thereby link - appropriation of the FMAP funding in FY 2010-2011 to enactment of the Commission's reforms (or similar reforms that keep Medicaid spending flat in FY 2010-11).

"The Governor and Legislature should put the best and brightest Medicaid minds together to figure out how to invest the $11 billion in FMAP to create long-term substantial State savings," said Sandy Parker, president and CEO of the Rochester Business Alliance. "New York State's Medicaid program increased 51 percent over the past decade from $30 billion in 1999 to $45 billion today. Our taxpayers and businesses simply cannot afford this already unsustainable and ever-expanding program."

"When it comes to Medicaid, we often have to invest money now to save money down the road," said Parker. "This was true with the Berger Commission recommendations, as well as with the Governor's current proposal to invest more in primary and preventative care as the pathway to saving money on in-patient services. Typically, however, we don't have any extra money to invest in Medicaid. Now we have an extra $11 billion, so let's invest it and let's do so wisely."

"Make no mistake, Unshackle Upstate is calling for the Commission as an addition to - not an alternative to - the Medicaid reforms currently being debated in Albany," said Sampson. "We support some - but not all - aspects of the Governor's proposed Medicaid reimbursement reforms, and we firmly believe the Governor and Legislature should work together to enact meaningful Medicaid reforms as part of the final budget package this year."

Unshackle Upstate's full Medicaid Policy Statement is available on the coalition's website. With respect to the Medicaid program, Unshackle Upstate:

Recognizes that Upstate hospitals and other providers occupy a unique place in the Medicaid debate and a "one size fits all" approach to Medicaid does not reflect the economic realities of Upstate New York or its health systems;

• Opposes broad-based Medicaid cuts in reimbursement rates not linked to structural reforms;
• Opposes cost-shifting to private health insurance; and
• Supports Graduate Medical Education (GME) funding.

The Unshackle Upstate coalition represents more than 45,000 employers and more than 1.5 million workers in every region of Upstate. The coalition's website www.unshackleupstate.com provides a direct way for citizens to send a message to elected officials in Albany.