Counties Ask State to Keep the Local Medicaid Cap
The New York State Association of Counties (NYSAC) is calling on State Lawmakers to reject efforts to require local taxpayers to fund new Medicaid costs.
NYSAC is asking State legislative leaders to remove Part R of the Health and Mental Hygiene Article VII language proposed in the SFY 2021 Executive State Budget, and the accompanying $150 million cost shift to local taxpayers. At the same time, counties said they will continue working with State leaders and with the Medicaid Redesign Team to address what is under local control and make recommendations for solutions that are under state control.
“Counties oppose all efforts to undo the local Medicaid caps that have helped counties stay under the tax cap and save local taxpayers money. Any state Medicaid proposal must protect local taxpayers and services, and keep the caps in place,” said NYSAC President John F. (Jack) Marren, the chairman of the Ontario County Board of Supervisors. NYSAC's campaign slogan is Protect local taxpayers, #KeeptheCap.
This year's Executive Budget proposal released last month includes three separate initiatives, referred to collectively as “Medicaid Local District Spending Reforms,” that would impact the Medicaid local share counties pay in support of the state Medicaid program. As proposed, it appears that all three spending reforms could be applied against any one county or New York City.
1) Cap eFMAP Federal Fiscal Benefits to Counties — Caps the amount of federal savings for counties and New York City from the Affordable Care Act. As proposed, the savings would be transferred to the benefit of the state financial plan.
2) Require Counties and NYC to adhere to the 2% Property Tax Cap or lose the savings from the state-funded local Medicaid growth cap.
3) Adhere to a Local Share Medicaid Costs Increase of No More than the global Medicaid cap (now pegged at 3%)— If a county's local share and associated savings exceeds the 3% in any given year, the county is required to refund any amount in excess back to the state.
The state budget process now moves to the State Legislature, where both houses are expected to release their budget priorities in the next two weeks and then Legislative Leaders will negotiate with the Governor on the final terms of the spending plan.
For more information on this proposal, www.nysac.org/medicaid.