Gov. Kathy Hochul could be left holding a political smoking gun if the state is hit hard by looming federal cuts to Medicaid, POLITICO’s Katelyn Cordero reports.
With Congressional Republicans on the hook to realize $880 billion in savings by Sept. 30, the Democratic governor will be forced to look for ways to compensate for the anticipated hit to the state’s $124 billion Medicaid budget — one of the largest in the country.
Seeming to recognize the tough spot she’s in, Hochul is aiming her frustrations at the state’s seven House Republicans.
“They're in the majority, they have the power,” she said of Republicans recently. “You have the power, and if you don't use that power, then you are complicit in this attack on the American people.”
Hochul’s proposed $252 billion budget, which is now more than three weeks late, leans on previously enacted savings initiatives — such as a troubled home care consolidation and a 2023 tweak to Medicaid’s pharmacy benefit.
More would need to be done if Republicans in Washington, D.C., go through with their proposed Medicaid cuts. State Budget Director Blake Washington said the state Department of Health is looking for ways to restrain costs.
And Health Commissioner James McDonald said any policy changes, even administrative ones that don’t impact care, are likely to face staunch opposition.
“This is not the type of money that the state of New York can just materialize. We are not in the position to offset cuts to spending,” McDonald told the state Public Health and Planning Council at a meeting on April 10. He said even if the state cuts back on administrative costs that don’t impact care, any change it implements in the program is likely to face opposition.
While Hochul has been blaming House Republicans — including one of her chief rivals, Rep. Mike Lawler — health policy experts say she is likely to face repercussions stemming from how the state reacts to cuts.
“It’s like a version of the blame game. If they have a special session where they can say, ‘We were forced to do this by the ogres in Washington,’ the next phase of that will be a bunch or school districts and hospitals making the same complaint about Albany,” Bill Hammond, a senior fellow at Empire Center, told POLITICO.
House Republicans are pointing right back at Democrats and their spending projections. When asked about Hochul’s call for Republicans to step up, Lawler said the governor should be looking at her own budget.
“For them to sit and point the finger, when they’re talking about increasing state spending by billions of dollars more is laughable,” Lawler told POLITICO. “I’m sure all my colleagues would be happy to hear them explain why they think increasing state spending by tens of billions of dollars makes sense at a time when New York is losing population.”
“It’s entirely political. I’ve been clear on the issue of Medicaid that we will protect those who rely on these benefits,” Lawler noted — and then accused the state of misusing taxpayer money on its immigration policies.
Republican Assemblymember Josh Jensen said he wishes the governor and his colleagues in Congress would work together to find a solution that protects New Yorkers from what’s to come.
“It’s always easier for a politician of any party to blame the other party for when there’s not an easy solution because it’s easy to make somebody else the villain,” Jensen said. “While our Republicans in Congress who represent New York could be fighting to ensure that New York State’s Medicaid dollars are secure, there should be more of an onus — especially from state leaders — to want to work cooperatively with our representatives in Congress from both parties.”
IN OTHER NEWS:
— Nassau University Medical Center unveiled a new mobile breast screening van that will begin service next month. The $1 million vehicle is funded through philanthropy and will boost the hospital’s screening capacity by 40 percent, officials said in a press release. It currently performs over 6,500 mammograms annually.
“With this new unit, we can detect more cases earlier, treat more women faster and ultimately save more lives,” Nassau Health Care Corp. CEO Megan C. Ryan said in a statement.
ON THE AGENDA:
— Monday at 1:45 p.m. the Assembly Health Committee will meet.
— Tuesday at 4 p.m. the Senate Health Committee will meet.
MAKING ROUNDS:
— NYC Health + Hospitals appointed Kenra Ford as senior vice president of clinical services operations and Divya Pathak as vice president and chief data and artificial intelligence officer for the health system.
GOT TIPS? Send story ideas and feedback to Maya Kaufman at mkaufman@politico.com and Katelyn Cordero at kcordero@politico.com.
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