News

State Update:

The Medicaid Redesign Team (MRT)

The public, private committee assembled by Governor Cuomo to find savings and efficiencies in the Medicaid program approved the final recommendations from all of its work groups before 2011 ended. In Phase One of the MRT process, MRT members worked alongside the Governor's office earlier in 2011 to help it close an unprecedented budget gap without raising taxes. The MRT's recommendations are expected to be included in the Governor's 2012 – 2013 budget.

Governor Cuomo's State of the State Address

The Governor called on the legislature to establish health insurance exchange legislation pursuant to the federal health care reform law – the Affordable Care Act. The Medicaid Global Spending cap instituted in last year's budget will continue in 2012. The Governor also said he plans to close the state's $2 billion budget deficit with no new taxes or fees, and he would like to work on mandate relief. In December 2011, Governor Cuomo and the leaders of the state legislature agreed to an MTA tax relief plan and revised tax code. The MTA tax relief plan and revised tax code will provide residents and businesses with much needed tax relief. However, hospitals were not included in the MTA tax relief plan. Hospitals are economic engines in their communities and in most cases the largest employers. On Long Island they are responsible for about 91,000 jobs and contributing about $14.6 billion to the local economy.

Federal Update:

Congress Funds Government Operations through FY 2012, Short-Term Package Addresses "Doc Fix"

As the December 16, 2011 deadline for funding of federal government operations drew near, Congress passed a Defense Appropriations Bill that funds the government through federal fiscal year 2012, which ends September 30, 2012. Had this Appropriations Bill not been passed, the government would have faced a shutdown.

Shortly after this action was taken, and before the year ended, Congress approved a two-month reprieve from the 27 percent physician payment cut that was set to take effect January 1, 2012. Congress also approved a two-month extension of unemployment insurance benefits, and the Social Security payroll tax holiday. All this was achieved without cuts to hospitals. This short-term package expires the end of February 2012.

Next step is to have a Congressional panel develop a year-long solution to the Medicare physician payment fix and the extension of unemployment insurance and the Social Security Tax holiday. House members return January 17, 2012 and Senate members return January 23, 2012. House and Senate leaders will appoint members to the panel.