By NICHOLAS L. DEAN
OBSERVER Mayville Bureau
ALBANY - State Sen. Catharine Young, R-Olean, has signed on as sponsor to the bill which would freeze and begin cutting away the cost of Medicaid from county governments.
The Senate bill would require the state to gradually take over Medicaid costs, an initiative that would save property taxpayers billions of dollars.
The proposal would freeze the rate that local governments pay for Medicaid, effective Jan. 1, 2012. Then, on Oct. 1 of next year, counties' contributions would be decreased by 5 percent, with local contributions annually reduced until the state entirely funds Medicaid services by 2019.
"New York has the highest Medicaid bills in the nation," Sen. Young said Thursday. "Medicaid is eating up county budgets, and is by far the largest unfunded mandate. The situation is unsustainable, and taxpayers pay a heavy price. We have to turn our state around to make it more competitive economically, and more affordable to live here. Cutting unfunded mandates and property taxes needs to happen."
According to Sen. Young, Assemblyman Andrew Goodell, R-Jamestown, is similarly supporting the state Assembly's matching version of the bill.
"It is great that Assemblyman Goodell is joining our effort," Sen. Young said. "He has been a tireless advocate for reducing spending, reforming Medicaid, and being on the side of the taxpayers."
Sen. Young said she voted for a $2.7 billion reduction in Medicaid spending, and the Medicaid reform which was passed in this year's state budget through a hard cap that prohibits the state from increasing Medicaid spending by more than the 10 year rolling average of the medical component of the consumer price index.
If Medicaid is taken over by the state, the hard cap will cost taxpayers $10 billion less than if the program were to continue to be funded jointly with local governments.
MEDICAID COSTS
Chautauqua County will pay $3,373,000 more in Medicaid to the state than it did in 2011. That year-to-year increase is a result of a couple of different factors, such as the fact that the county does not have the one-time federal stimulus money it used in 2011 to lessen the burden.
The cost of Medicaid increases roughly $773,000 each year. Last year, the county used $2 million in one-time federal stimulus revenues to offset its payment to the state. With that money not available this year and surpluses depleted, the county now has to shore up that $2 million amount as well as the $773,000 increase.
The county also has to make its first 2013 payment to the state during the 2012 calendar year, which accounts for somewhere around $600,000 of that $3.3 million figure.
OTHER REFORM
In 2006, Sen. Young said Thursday, the Senate successfully pushed to have the state assume the cost of the Medicaid-funded program Family Health Plus from counties, and capped the counties' annual Medicaid increases to 3 percent, saving local taxpayers millions of dollars.
As a result, Sen. Young said, Chautauqua County's Medicaid expenses were reduced by $35.6 million.
"These reforms we achieved have significantly helped local taxpayers and now the state should continue on that course through an entire takeover of Medicaid," Senator Young said.
She said that further restructuring of Medicaid is needed to continue providing necessary services while scaling back unnecessary expenses.
Sen. Young continues on in her release to detail other pieces of legislation she sponsors which have tackled welfare and Medicaid reform. The full release can be found online with this article.
Senator Young said all of the initiatives would go far to alleviate the state's tax burden, grow private sector jobs and boost the economy.
"It would translate into big savings for homeowners, small businesses and manufacturers, which will allow our state to thrive once again. I will push as hard as I can to make it happen," she said.
FOR INCLUSION ONLINE AS A SIDEBAR
ALBANY - Senator Catharine Young (R,C,I-Olean) has signed on as sponsor of legislation that would require the State to gradually take over Medicaid costs from the counties, an initiative that would save property taxpayers billions of dollars.
Senate bill 5889-B would immediately freeze the rate local governments pay for Medicaid, effective January 1, 2012. On October 1, 2012, counties' contributions would be decreased by five percent, with local contributions annually reduced until the state entirely funds Medicaid services by 2019. The state Assembly has a matching version of the bill which Assemblyman Andrew Goodell (R,C-Chautauqua) is strongly supporting.
"New York has the highest Medicaid bills in the nation. Medicaid is eating up county budgets, and is by far the largest unfunded mandate. The situation is unsustainable, and taxpayers pay a heavy price. We have to turn our State around to make it more competitive economically, and more affordable to live here. Cutting unfunded mandates and property taxes needs to happen," said Senator Young.
"It is great that Assemblyman Goodell is joining our effort. He has been a tireless advocate for reducing spending, reforming Medicaid, and being on the side of the taxpayers," she added.
Senator Young said she voted for a $2.7 billion reduction in Medicaid spending, and Medicaid reform that was passed in this year's state budget through a hard cap that prohibits the State from increasing Medicaid spending by more than the ten year rolling average of the medical component of the consumer price index.
If Medicaid is taken over by the State, this hard cap will cost taxpayers $10 billion less than if the program continued to be funded jointly with local governments.
Senator Young added that in 2006 the Senate successfully pushed to have the State assume the cost of the Medicaid-funded program Family Health Plus from counties, and capped the counties' annual Medicaid increases to 3 percent, saving local taxpayers millions of dollars. As a result, Chautauqua County's Medicaid expenses were reduced by $35.6 million.
"These reforms we achieved have significantly helped local taxpayers and now the State should continue on that course through an entire takeover of Medicaid," Senator Young said.
She said that further restructuring of Medicaid is needed to continue providing necessary services while scaling back unnecessary expenses.
Senator Young sponsors several pieces of legislation that tackle welfare and Medicaid reform. Additionally, she and Assemblyman Goodell teamed up with Chautauqua County Executive Greg Edwards to establish new procedures in a Welfare-to-Work program to make it more effective. Next year, welfare recipients will provide manpower to clean Chautauqua Lake in conjunction with the Chautauqua Lake Association. Participants will gain job skills that will help them become more self-sufficient. This demonstration project could be a model for the entire State, she said.
"There are abuses in the Medicaid system that need to be changed. Not only should there be an intensive focus on getting people off welfare and into the workforce, there must be strong efforts to eliminate waste and fraud," she said.
"Regrettably, under Governor Paterson, effective anti-fraud measures such as checking people's assets and conducting personal interviews were eliminated. Senate bill 5402 reinstates these methods that have been proven to deter fraud," she said.
Senator Young also sponsors Senate bill 4384-B which establishes cutting edge methods by using biometric technology to verify identification through a person's physical characteristics such as fingerprints, facial recognition, or iris scans.
"There are countless cases of people cheating the system and collecting Medicaid inappropriately because they are not who they say they are. We must weed those cheaters out," she said.
The Senator said she additionally sponsors Senate bill 594 that would allow local prosecutors to investigate Medicaid fraud and partially keep recoveries for county coffers, thereby helping local taxpayers.
"Local district attorneys and law enforcement know what is going on in their communities much better than a Medicaid Inspector General sitting in Albany. It's common sense," she said.
Senator Young also has written Governor Cuomo to urge him to immediately activate the Mandate Relief Council that was established by a state law passed in June.
The Mandate Relief Council will be made up of 11 members nominated by the Governor and state Legislature. These appointees will identify and review statutes and regulations upon the request of a local government or member of the Council to determine whether these rules are unsound, or unduly burdensome or costly.
The Council will have the power to unilaterally repeal bad regulations. If a law is found by the Council to unreasonably drive up expenses for local governments or school districts, the Governor will be required to submit legislation to modify the law. The Senate and the Assembly will be obligated to vote on the Governor's bill.
"The Mandate Relief Council has the potential to be a powerful tool to repeal unfunded mandates that drive up local costs and taxes. It is urgent that the Council begin its work now. Local governments are putting together their budgets, and they need help," she said.
Senator Young said all of these initiatives would go far to alleviate the State's tax burden, grow private sector jobs and boost the economy.
"It would translate into big savings for homeowners, small businesses and manufacturers, which will allow our State to thrive once again. I will push as hard as I can to make it happen," she said.
