NEW YORK (BLOOMBERG) \u2014 New York\u2019s Medicaid spending is projected to rise to nearly $134 billion in the current fiscal year, about $45 billion more than the state spent five years ago, driven by an aging population, rising medical costs, and growing enrollment in home health care.<\/p>\n
Despite a 50% increase in the federal-state program supporting healthcare for the poor and elderly, New York expects to hold Medicaid spending growth to just 1% and 1.5% for fiscal years 2028 and 2029 respectively, according to the state\u2019s Mid-Year Financial Plan Update<\/a> released Friday.<\/p>\n Tim Ruffinen, a spokesman for the state\u2019s Division of Budget, declined to comment. <\/p>\n New York ranks first among US states in Medicaid spending per capita, and the program eats up almost half of the state\u2019s roughly $282 billion budget. Medicaid costs are shared by the federal government, the state, counties and New York City. <\/p>\n In addition to an aging population, increased reimbursement rates for hospitals and nursing homes, as well as higher drug costs, are driving up spending, the state said. <\/p>\n President Donald Trump\u2019s budget bill in 2025 included sweeping cuts to Medicaid safety-net programs like food stamps. <\/p>\n In 2030, federal spending for New York\u2019s Medicaid program is expected to decline to about $69 billion from about $76 billion the prior year.<\/p>\n Enrollment in the state\u2019s managed long-term care program for seniors and individuals dually enrolled in Medicaid and Medicare comprise about 60% of Medicaid spending. By 2030, New Yorkers aged 65 and older are projected to comprise 21% of the state\u2019s population, up from 13% in 2010, putting significant pressure on the state budget, the Mid-Year update said.<\/p>\n