Webinar Reviews Medicaid Budget Proposals
Medicaid Director Jason Helgerson walked through the Executive Budget Proposal for Medicaid cost containments, the November update of the Medicaid Global Cap, as well as Global Cap spending projections for State Fiscal Year 2017-18 in a presentation held via webinar last week. Helgerson stressed that the three largest current cost drivers in the Medicaid program were drug spending, growth in Managed Long Term Care (MLTC) participation, and investment to fund increases to the state's minimum wage. Federal actions and the state's repayment of federal overclaims are expected to contribute another $32 million worth of pressure to the global cap in 2017-18.
Medicaid spending was trending $26 million (0.2 percent) above projections in November, with Medicaid enrollment down by 54,000 individuals, mostly due to conversions to the essential plan. However, even when transfers to the essential plan are disregarded, Medicaid enrollment is down by 3,356 individuals compared to April 2016. Global Cap spending was projected to increase by $962 million in SFY 2017-18, with $782 million attributed to price increases driven by minimum wage and managed care trend factors and $340 million to utilization. These increases are offset by $161 million in savings thanks to pharmacy rebates, enhanced federal participation, and the removal of $40 million in uncommitted VAP funds.
Helgerson reviewed the proposed Medicaid cuts without much elaboration, and questions were deferred to a Twitter chat scheduled for Wed., Feb. 15th from 2-3 pm. To participate, tweet at @NewYorkMRT using the hashtag #NYMRT. The webinar slides are available here. The Medicaid savings scorecard, which lists proposed cuts with their projected budget impacts, is posted here.
Contact: Darius Kirstein, dkirstein@leadingageny.org, 518-867-8841