State Medicaid budgets are feeling squeezed as demand and costs continue to rise past inflation or budget predictions.
The State of New York is entertaining cutting Medicaid services, but many think another source(education) will face cuts first before that happens.
Here’s more the Times Union:
Cuts to health care spending in New York may be needed to offset underestimated Medicaid costs, according to two fiscal watchdogs reports.
A reduction in Medicaid spending could take a variety of forms, including lowering the rates paid to medical providers that serve Medicaid patients, limiting eligibility for the program, cutting payments to insurance providers or curtailing benefits.Instead, they think the state needs to acknowledge the reality of its Medicaid needs, and that the way forward could be a mix of Medicaid spending cuts and reductions in economic development and education spending.
Because education aid is one of the two largest areas of state spending, it might be best positioned to absorb reductions. If the state is trying to find savings moving forward, it’s possible that education aid increases also may be less than anticipated.
