Public Employee Press

Political Action 2006
Medicaid cuts target HHC hospitals

As part of his last executive budget, Gov. George E. Pataki aims his most severe blow yet at the public health system. Despite a $2 billion dollar state surplus, the proposal would cut Medicaid by $1.5 billion dollars.

The proposed cuts would slash funding for the city’s Health and Hospitals Corp. to the tune of $170 million, with the network of 12 hospitals losing over $110 million. Lincoln Medical Center in the South Bronx, for example, would lose $14 million.

The reduction would also hit HHC’s four nursing homes, which would lose over $30 million. The annual increase that hospitals receive to offset rising costs (Hospital Trend Factor) would be eliminated, cutting $54.6 million from HHC.

Implementing Pataki’s proposed changes in Family Health Plus would cost HHC an estimated $3.1 million, and mandate co-pays for FHP recipients. Hospitals would be allowed to deny services to FHP patients who cannot make the co-payment. The co-pay would increase from $3 to $25 for inappropriate use of emergency room services, and individuals who work for businesses with more than 100 employees would not be eligible.

While Gov. Pataki complains about the “out of control” costs of Medicaid, the reality is that costs are growing for private health plans as well and Medicaid costs are growing slower than private insurance. Low-wage workers, who usually don’t get health insurance through their employers, must rely on Medicaid.

DC 37 will be organizing a postcard campaign and mobilizing busloads of members March 6 to lobby against the cuts in Albany.