NY leads states seeking federal bailout on costs for elderly who use Medicare, Medicaid
By APTuesday, January 12, 2010
States seek to shift some health costs to feds
ALBANY, N.Y. — New York Gov. David Paterson, far from alone in leading a state with a growing budget deficit and few options, is trying to build a coalition of several big states as he seeks a federal takeover of health care costs for the elderly poor who receive benefits under both Medicare and Medicaid.
Paterson and Lt. Gov. Richard Ravitch have already spoken with officials in California and other big states, which they wouldn’t name because they are still considering the idea. The savings to New York alone would total the projected deficit for the 2010-11 fiscal year of about $8 billion.
They’re touting the proposal by saying that the cost would be a fraction of the federal government’s health care spending and that it could avert a catastrophe for states that would ultimately require a federal bailout.
California’s Medicaid director says his state is interested as long as it reduces state costs.
Ravitch says the cost would be a fraction of the federal government’s health care spending and would avert catastrophe that would ultimately require a federal bailout.
A spokeswoman for President Barack Obama hasn’t responded to a request for comment on the proposal.
Tags: Albany, Barack Obama, California, Government Programs, Government-funded Health Insurance, New York, North America, Seniors, Seniors' Health, United States
