Thursday, February 17, 2011

Medicaid Data

Today's "Holy #*!$" piece of data comes from Newshour that broke down the Medicaid spending issues facing the states.

While we're going to hear a great deal about spending cuts in education and infrastructure it's important to realize how the healthcare monster is destroying our ability to compete in the global economy (in my opinion).

Consider this data on NY State (please excuse the lack of table spacing).....


Federal Share NY State's Share
2005 $22,141,962,444 $21,910,065,831
2006 $22,497,323,342 $22,285,330,029
2007 $22,514,613,640 $22,306,020,782
2008 $23,889,330,132 $23,643,919,498
2009 $29,004,506,802 $20,026,711,833
2010 $31,434,531,113 $20,356,185,342
2011 $33,715,356,000 $26,032,352,000
2012 $30,877,828,000 $30,623,921,000

Between 2010 and 2012 the NYS Medicaid budget is projected to explode from $51.8 billion to $61.5 billion. That means we saw a $10 billion jump in 2 years in total costs of the program.

Much of this spike was covered by Federal Stimulus money that flowed to NYS from 2009 to 2011 so while the total cost of Medicaid was growing in NYS we didn't feel the pain because our share of the bill shrank while the program was expanding.

Now the Federal government would like to go back to a more traditional 50/50 split on Medicaid costs and we've discovered that the programs has grown by 20% in the last 2 years.

Coincidentally, NY State's budget deficit in 2011-12 is projected to be just over $10 billion (roughly equivalent to the jump in Medicaid spending over the past 2 years).

Almost every state has seen similar growth, but one interesting side note would be looking at the "BIG" state data. NYS has been passed in recent years on the population charts by Florida and Texas. Take a look at their medicaid costs compared to ours in 2012.

NYS - $30.6 billion

California - $25.8 billion

Florida - $9.2 billion

Texas - $13.2 billion

NY is by far the leading spender on Medicaid despite having the 4th largest population (NY State's Medicaid budget is 38% larger than Texas and Florida COMBINED!!!!).

I'm not a Medicaid expert, but if you want to help restore funding for your favorite pet project like infrastructure or education I think we might want to look at ways to reign in medical costs in NY State.

Cheers!

10 comments:

Anonymous said...

Yep, NYS is a welfare state. I've seen it over and over. Lazy people, lying people, "me me me me" people, "don't want to work" people. My tax dollars are being wasted in this state.

Laurie said...

I have no problem contributing my tax dollars to people who legitimately need a "hand up". I suspect more of the "abuse" comes from hospitals and clinics trying to rape the system.

D.M.T. said...

Don't just look at Medicaid.if you want to get to the truth of this state.. aka. New York find out why we pay 20% over what the national average for everything we buy here..Gas.Fuel.Elec.etc.etc.then you will have done something.!

Anonymous said...

Well I work in a pharmacy and I see lots of abuse. Taxpayers pay for drugs that are available over the counter. No co-pays, there should be some, any control should have a co-pay. Drug testing should be done.And limit the doctor and ER visits.

Anonymous said...

when ny sends people any where they use the most expensive transportation. 36 to 45 dollars a trip. let them go pera-transit or cab. nothing wrong with either one. i cant even afford the trans they use. they could afford to send more people for less. these people probably never contributed to taxes. also have a way for them to use med facilities without wasting hopital em time most of them more then likely only have the sniffles.

Anonymous said...

The GAO estimated there to be a total of over $48 Billion dollars total in over payment in fiscal year 2010 alone for the Medicaid program. And that figure DIDN'T include the over payments for the prescription drug program.

Do you think part of the problem is the rampant abuse and fraud that occurs every year? I will give the Obama administration credit for one thing, they've doubled the efforts at clamping down on this fraud. But clearly we need to do more.

Anonymous said...

I agree 100% with the first comment. This state is definately a welfare and free handout state. Each time I or a family member visits our doctor or the ER, approximately 80% of the folks being treated are either on welfare or are being supported by this state one way or another. What makes me sad is the fact that most cases are due to smoking. How much do we tax payers have to dish out in order to help support the ramifications of a smoker on welfare. We don't put the cigs in their mouths but, we definatley help support the doctors and staff that treat them. It will never change because lawmakers have made it very difficult when dealing with welfare. Sit on your ass your entire life and let the hard working taxpayer support you and your 7 kids that will most likely end up on welfare too. Another thing that makes me upset is the state prison system. Why not take away from the prisoneers that are also getting a free ride. "you did the crime so you do the time"??? Do the time alright, free attourney, free heathcare, dental and even a collage education. What ever happened to "hard time". I think that went out the window with "an honest hand shake". It's a crying shame that our state has the balls take away from our childrens education but doesn't have the balls to fight lawmakers and change this "upside down" system that we continue to support with taxes.

The Artful Blogger said...

Thanks for all of the comments. Clearly this subject touched a nerve.

I'm really stunned by the gap between our spending in NY and California and Texas. If you take California and Texas TOGETHER they have 3 times the population of NY but we spend 75% as much as Texas and California combined.

It seems like many people in the system (ERs, Pharmacies, Rehab) might be the best sources to identify waste and fraud. Maybe we should try to institute a Fraud hotline modeled after the "See Something, Say Something" anti-terror campaigns.

"See Fraud, Stop Fraud" - call the 1 800 SAVE NYS.

What do you think?

Anonymous said...

I have an issue with Medicaid telling the recipients that they do not have to pay the pharmacy the co pay. If they dont have to pay the co pay why bother tacking one on. I have insurance and I have to pay my co pay why shouldnt they. I have an issue with generation after generation being on this because they know nothing else, like working for a living. I work 2 jobs to make ends meet and see everyday old people that cant pay for their medications so they go without..that is disgraceful when they worked all their lives and now the years that they are suppose to be enjoying they cant because they have no money. Young, ablebodied people need to get off this program and get a damn job. Sad Sad.

Anonymous said...

So much misinformation is thrown around as if it is fact. I am on Medicaid and had to because I became disabled a year and a half ago. I don't qualify for Medicare because there is a two year waiting period. I pay co-pays for most of my drugs. I am forced to always use the generic and can only use drugs on the formulary, so many of the more expensive, newer and more effective drugs are not available to me. One person stated "these people probably never paid taxes". I worked for 37 years paying Social Security and income taxes every year. Yes, there are people who abuse the system and those people should be dealt with individually not throw all of us into one category, though we have done nothing wrong. The majority of Medicaid/Medicare abuse comes through fraudulent use of the electronic billing system. See Pedro Espada. A few facts rather than bold unsubstantiated assertions and misinformation might point us in the direction of a real solution.