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Earlier we noted that state legislatures are eager to pass Medicaid costs to the private sector. Newsday weighs in with a shrewd editorial that pinpoints the source of New York State’s burgeoning Medicaid program ($44 billion and climbing fast), along with some potential solutions:
New York's Medicaid bill is way out of line, compared to other states…its $44-billion annual cost exceeds spending on education, law enforcement, environmental protection, transportation and all social services. …
What most separates this state from the Medicaid pack is what it pays for hospital and nursing care. This is due largely to a tradition of delivering a disproportionate amount of care at costly, heavily regulated teaching hospitals. Market forces at work in other states have been slow to take here. Reimbursement rates and pay have been boosted beyond the national average by powerful trustees and union leaders who pool their clout to lobby lawmakers. This explains why the state's Medicaid spending has been well above others for years.
Newsday calls the naked emperor to account: New York’s legislators view Medicaid spending through the skewed lens of special interests. Until states face up to the real dynamics driving Medicaid spending, real reform will remain elusive.
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