NY governor proposes Medicaid cuts

Gov. George E. Pataki (R-NY) is recommending cuts in Medicaid reimbursement rates to nursing homes as part of his overall budget proposal to the Legislature.

Pataki is proposing a total of nearly $1 billion in spending cuts for healthcare and Medicaid. He is targeting Medicaid to help close a projected budget gap of $4 billion in the fiscal year beginning April 1, according to The New York Times. Medicaid is the fastest-growing part of the state's $101 billion annual budget.

Pataki also is attempting to raise $234 million in additional taxes and surcharges on hospitals and nursing homes.

The Medicaid cuts, Pataki's aides said, are linked to an initiative that would assist localities by requiring the state to pick up a larger share of their Medicaid costs. In New York, state and local governments, as well as the federal government, share Medicaid costs.