In an emergency session, New York state lawmakers agreed to curb Medicaid spending, but did not adopt far deeper cuts proposed by Gov. David Paterson. The budget deal trims certain Medicaid increases tied to inflation for hospitals, nursing homes and home care, according to the Greater New York Hospital Association.
Hospitals stand to lose roughly $200 million through the end of New York's budget for fiscal 2009, which begins April 1, 2009, the trade group said. Nursing home Medicaid cuts will total $148 million and the sector will see another $125 million eliminated from public nursing home grants during the same period. Home healthcare and personal-care providers will see reductions of $40 million and $45 million, respectively.
Patersons unsuccessful proposal called for $500 million to be cut from Medicaid for the last six months of 2008 and a $1.04 billion reduction in 2009. The governors office said said the two-year budget deal will save the state $400 million in fiscal 2008, which ends March 31, 2009, and $600 million in fiscal 2009. -- by Melanie Evans