New York asks to use federal Medicaid savings on health-care reforms

New York State is asking for permission to use federal Medicaid savings sparked by the state’s Medicaid Redesign Team (MRT) to put that team’s action plan in place.

The state applied for a waiver with the federal government that would allow it to use up to $10 billion over five years to follow the MRT action plan, which calls for modifying the state’s health-care system. The funding would come from federal savings produced by MRT reforms. Those reforms are estimated to save the federal government $17.1 billion over five years.

The $10 billion requested in the waiver would go to state initiatives aimed at reducing hospital readmissions, expanding access to primary care, establishing health homes, and transforming safety-net providers. New York also wants to use the funding for work-force training, long-term care integration to managed care, and developing strategies to produce Medicaid savings.

“The reforms put in place by the Medicaid Redesign Team have already resulted in major savings for taxpayers and better quality of care for New Yorkers,” Gov. Andrew Cuomo said in a news release. “This waiver amendment will allow New York State to fully implement the groundbreaking MRT action plan to permanently restructure our health-care system and continue to make New York a national model.”

Cuomo set up the MRT in January 2011, giving it the mission of reforming the state’s health-care system and cutting costs. The MRT submitted a report in February of that year that was designed to lower Medicaid spending for the 2011-2012 fiscal year by $2.3 billion. The state’s legislature approved 78 of the report’s 79 recommendations.

New York estimates the MRT’s recommendations will save $34.3 billion over five years. Those savings would be split between the state and federal government.

Contact Seltzer at rseltzer@cnybj.com