July 29, 2003
Task Force Begins Work on Medicaid

Gannett News Service

ERIKA ROSENBERG, ALBANY BUREAU

(July 29, 2003) - ALBANY - How to rein in spending on the state's $41 billion Medicaid
health program for the poor is the unenviable job of the Senate Medicaid Reform Task
Force, which met for the first time on Monday.

Not everyone at the meeting even agreed on that goal. Dennis Rivera, head of the
powerful health care workers' union that added billions to the Medicaid tab in a January 2002 deal, said the task force should not simply focus on cutting expenses.

" If the task force goal deals exclusively with reducing costs, I think that is not
working in the most effective way. We have to take a look at the whole health care needs of our community," said Rivera, head of the New York City-based Local 1199 of the Service Employees International Union.

The union won a huge victory in January 2002 when Gov. George Pataki and the Legislature passed a bill pumping more than $2 billion into the health care system to boost salaries for nurses, aides and other employees. Now, the added costs are another strain on state and county budgets. The state raised income and sales taxes this year, in part to avoid big cuts to health spending, but the state comptroller predicts a deficit next year of $5.3 billion.

" I'm not going to second-guess anything that was done in the past," said Senate
Majority Leader Joseph Bruno of the 2002 deal. Bruno, R-Brunswick, Rensselaer County, created the task force.

He said boosting salaries to attract and keep good health care workers was an important goal.

The task force plans to hold discussions with health experts across the state and
develop recommendations by the start of next year's legislative session in January.
Pataki and Assembly Democrats would have to agree to put any reforms into place.

One of the task force's chairmen predicted it will reach its goal of finding ways to
rein in costs for one simple reason - it must be done.

" We can't afford to go on the way that we're going," said Sen. Raymond Meier,
R-Western, Oneida County.

Since 1995, Medicaid spending in New York has grown 68 percent to $41.3 billion this
year. While the federal government will pick up $21 billion, the state will pay almost
$14 billion and counties about $6 billion.

 

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