{"id":64435,"date":"2025-12-08T17:15:07","date_gmt":"2025-12-08T17:15:07","guid":{"rendered":"https:\/\/www.newsbeep.com\/us-ny\/64435\/"},"modified":"2025-12-08T17:15:07","modified_gmt":"2025-12-08T17:15:07","slug":"fiscal-fallout-nys-biggest-budget-item-medicaid-spending-outpaces-all-others-new-york","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/us-ny\/64435\/","title":{"rendered":"Fiscal Fallout: NY&#8217;s biggest budget item, Medicaid spending outpaces all others | New York"},"content":{"rendered":"<p class=\"Paragraph SCXW44075158 BCX8\" lang=\"EN-US\" xml:lang=\"EN-US\">(The Center Square)\u00a0Four years ago, New\u00a0York state\u00a0spent more money per resident on Medicaid,\u00a0the joint-federal-state program for the poor and disabled,\u00a0than any other.\u00a0<\/p>\n<p class=\"Paragraph SCXW44075158 BCX8\" lang=\"EN-US\" xml:lang=\"EN-US\">Today, the\u00a0state spends an\u00a0additional\u00a0$700 per resident\u00a0on Medicaid, a rate of growth that far exceeds that of any other program in\u00a0its\u00a0budget, an investigation by The Center Square found.\u00a0<\/p>\n<p class=\"Paragraph SCXW44075158 BCX8\" lang=\"EN-US\" xml:lang=\"EN-US\">The\u00a0Empire State\u00a0spends $4,924 per capita\u00a0on Medicaid, according to state figures.\u00a0By contrast, the next closest state, Kentucky, spent\u00a0$3,700\u00a0in 2022.\u00a0As recently as\u00a02021, Gov. Andrew Cuomo\u2019s last year in office,\u00a0New York\u2019s\u00a0figure was $4,240.\u00a0\u00a0<\/p>\n<p class=\"Paragraph SCXW44075158 BCX8\" lang=\"EN-US\" xml:lang=\"EN-US\">The spike has occurred despite\u00a0a decline in Medicaid enrollment.\u00a0In October 2023,\u00a0a peak of\u00a07.7\u00a0million\u00a0of\u00a0New York\u2019s\u00a019.6\u00a0million\u00a0residents\u00a0were enrolled in the program. Now\u00a06.8\u00a0million are.\u00a0\u00a0<\/p>\n<p class=\"Paragraph SCXW44075158 BCX8\" lang=\"EN-US\" xml:lang=\"EN-US\">Typically,\u00a0shrinking\u00a0enrollment\u00a0would result in\u00a0shrinking state\u00a0spending.\u00a0But\u00a0that\u00a0hasn\u2019t\u00a0happened. The state\u2019s operating funds for Medicaid\u00a0have\u00a0jumped to\u00a0$44.7 billion\u00a0from\u00a0$27.7 billion\u2014a 61.3 percent increase &#8212; between 2022 and April of this year when the 2026 budget started.\u00a0\u00a0<\/p>\n<p class=\"Paragraph SCXW44075158 BCX8\" lang=\"EN-US\" xml:lang=\"EN-US\">What has driven the increase is\u00a0New York\u2019s\u00a0ten-year-old\u00a0at-home care program for Medicaid recipients, a plan that pays relatives to take care of their loved ones.\u00a0Known as the consumer directed personal\u00a0assistance\u00a0program,\u00a0its budget\u00a0is\u00a0$11.2\u00a0billion. The initiative\u00a0has become so popular that state officials\u00a0are looking\u00a0for ways to\u00a0trim costs.\u00a0<\/p>\n<p class=\"Paragraph SCXW44075158 BCX8\" lang=\"EN-US\" xml:lang=\"EN-US\">Bill Hammond, senior fellow at health policy for the Empire Center for Public Policy,\u00a0notes that\u00a0Medicaid\u00a0takes\u00a0up more than thirty-five percent\u00a0of the state budget, a figure he expects will continue to\u00a0grow under\u00a0Cuomo\u2019s success,\u00a0Gov.\u00a0Kathy\u00a0Hochul, also a Democrat,\u00a0and the Democratic-controlled legislature.\u00a0<\/p>\n<p class=\"Paragraph SCXW44075158 BCX8\" lang=\"EN-US\" xml:lang=\"EN-US\">\u201cShe\u2019s spending a lot more on Medicaid in particular,\u201d Hammond said in an interview. \u201cThey say we have an aging population, but\u00a0it\u2019s\u00a0not increasing 12 percent a year. She has a different attitude\u00a0about\u00a0spending\u00a0than\u00a0Cuomo\u00a0did. Spending has skyrocketed.\u201d\u00a0<\/p>\n<p class=\"Paragraph SCXW44075158 BCX8\" lang=\"EN-US\" xml:lang=\"EN-US\">A Hochul spokesperson was not\u00a0immediately\u00a0available for comment.\u00a0<\/p>\n<p class=\"Paragraph SCXW44075158 BCX8\" lang=\"EN-US\" xml:lang=\"EN-US\">Created in 1965\u00a0as a centerpiece of President Lyndon Johnson\u2019s War on Poverty, Medicaid provides insurance to\u00a071\u00a0million\u00a0poor and frail\u00a0Americans.\u00a0Unlike Medicare, the health insurance program for elderly Americans, state and local governments pick up part of the tab for Medicaid, at least 40 percent in the case of states.\u00a0The federal government spent\u00a0$919\u00a0billion\u00a0on the program\u00a0in 2023-\u201924, the latest year for which figures are available.\u00a0<\/p>\n<p class=\"Paragraph SCXW44075158 BCX8\" lang=\"EN-US\" xml:lang=\"EN-US\">Medicaid is not the only budget item that caused New York State\u2019s state operating funds budget\u00a0to swell to\u00a0$143.8 billion\u00a0this year from\u00a0$123 billion\u00a0in 2022, according to state\u00a0figures.\u00a0<\/p>\n<p class=\"Paragraph SCXW44075158 BCX8\" lang=\"EN-US\" xml:lang=\"EN-US\">In addition to increased spending on Medicaid, the Empire State has boosted annual funding for K-12 public schools, to\u00a0$37.6 billion\u00a0this year from\u00a0$29.2 billion\u00a0in 2022.\u00a0<a href=\"https:\/\/www.thecentersquare.com\/new_york\/article_1de883b8-9946-400b-b87e-c69357cd116e.html\" target=\"_blank\" rel=\"nofollow noopener\">As The Center Square has reported<\/a>, the state spent\u00a0more per pupil,\u00a0$35,095\u00a0in the 2023-\u201924 school year,\u00a0than any other.\u00a0<\/p>\n<p class=\"Paragraph SCXW44075158 BCX8\" lang=\"EN-US\" xml:lang=\"EN-US\">Overall, New York\u2019s K-12\u00a0school\u00a0budget\u00a0has jumped\u00a022.3 percent\u00a0since 2022. By contrast, the state spent\u00a06 percent\u00a0more\u00a0on\u00a0all other budget items, including police, highways and roads, housing and prisons.\u00a0<\/p>\n<p class=\"Paragraph SCXW44075158 BCX8\" lang=\"EN-US\" xml:lang=\"EN-US\">Like their counterparts in Washington, New York lawmakers have struggled to find ways to reduce Medicaid\u2019s costs.\u00a0\u00a0<\/p>\n<p class=\"Paragraph SCXW44075158 BCX8\" lang=\"EN-US\" xml:lang=\"EN-US\">One problem is the program\u2019s popularity. According to\u00a0a\u00a0June\u00a0poll from the\u00a0Kaiser Family Foundation, a nonprofit, 93\u00a0percent of Democrats, 81 percent of independents, and 72 percent of Republicans\u00a0expressed approval\u00a0of the safety net plan.\u00a0\u00a0<\/p>\n<p class=\"Paragraph SCXW44075158 BCX8\" lang=\"EN-US\" xml:lang=\"EN-US\">Despite strong public support, studies show that Medicare\u2019s effect on enrollees has been a mixed bag.\u00a0\u00a0<\/p>\n<p class=\"Paragraph SCXW44075158 BCX8\" lang=\"EN-US\" xml:lang=\"EN-US\">According to a 2013\u00a0article in The New England Journal of Medicine, a study\u00a0by ten health scholars\u00a0compared 6,800 Oregon residents who enrolled in Medicaid\u00a0with 5,800 who did not. It found that Medicaid significantly increased the percentage of people who\u00a0were diagnosed and treated for diabetes, decreased the share of those who tested positive for depression and reduced severe financial strain.\u00a0\u00a0<\/p>\n<p class=\"Paragraph SCXW44075158 BCX8\" lang=\"EN-US\" xml:lang=\"EN-US\">However, the study also found that Medicaid recipients were not more likely to be diagnosed\u00a0for\u00a0hypertension, high cholesterol levels\u00a0or use the medications for those conditions. In addition, the authors\u00a0did not find\u00a0significant\u00a0differences\u00a0in physical health outcomes in the first two years of enrolling in Medicaid.\u00a0<\/p>\n<p class=\"Paragraph SCXW44075158 BCX8\">Fiscal observers note\u00a0that\u00a0New York\u2019s budget would be worse off if Wall Street\u2019s recent boom had not helped bail out the state indirectly. The S&amp;P 500, a basic barometer of the stock market, has increased 47.6 percent since 2022.\u00a0<\/p>\n<p class=\"Paragraph SCXW44075158 BCX8\" lang=\"EN-US\" xml:lang=\"EN-US\">Hammond of The Empire Center added that\u00a0Gov. Hochul is up for re-election next year, an event\u00a0likely to precipitate more state spending on Medicaid.\u00a0<\/p>\n<p class=\"Paragraph SCXW44075158 BCX8\">\u201cNew York had all this federal\u00a0money,\u201d he said, referring to the federal government\u2019s spending infusion as the result of the coronavirus pandemic from 2020 to 2023, \u201cand it spent and continued to spend on Medicaid and education and while it subsided, with an election coming up,\u00a0it\u2019s\u00a0about to be jacked up again.\u201d\u00a0<\/p>\n","protected":false},"excerpt":{"rendered":"(The Center Square)\u00a0Four years ago, New\u00a0York state\u00a0spent more money per resident on Medicaid,\u00a0the joint-federal-state program for the poor&hellip;\n","protected":false},"author":2,"featured_media":64436,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[37],"tags":[67,4429,19085,19632,9,24,1411,63,122,124,123],"class_list":["post-64435","post","type-post","status-publish","format-standard","has-post-thumbnail","category-queens","tag-education","tag-healthcare","tag-investigations","tag-issues","tag-new-york","tag-new-york-city","tag-new_york","tag-nyc","tag-queens","tag-queens-headlines","tag-queens-news"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/us-ny\/wp-json\/wp\/v2\/posts\/64435","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/us-ny\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/us-ny\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us-ny\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us-ny\/wp-json\/wp\/v2\/comments?post=64435"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/us-ny\/wp-json\/wp\/v2\/posts\/64435\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us-ny\/wp-json\/wp\/v2\/media\/64436"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/us-ny\/wp-json\/wp\/v2\/media?parent=64435"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/us-ny\/wp-json\/wp\/v2\/categories?post=64435"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/us-ny\/wp-json\/wp\/v2\/tags?post=64435"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}