Lee Seeks Answers Regarding Impact Of Medicaid Expansion On State Budget

Press Release

In light of a recent report, Congressman Chris Lee (NY-26) today wrote to the New York State Department of Health to request information regarding what impact proposed federal changes to Medicaid will have on New York State taxpayers. The National Conference of State Legislatures report showed new costs would exist for New York State families if House Democrat's health care reform legislation were to become law (to read the report, click HERE).

The text of the letter is below.

Visit http://chrislee.house.gov/fixinghealthcare to learn more about Congressman Lee's efforts to reform America's health care system to lower costs, expand access and improve quality.

FULL TEXT OF LETTER:

November 6, 2009

Richard F. Daines, M.D.
Commissioner
New York State Department of Health
Corning Tower
Empire State Plaza
Albany, NY 12237

Dear Commissioner Daines:

I am writing to seek urgent information on the effect health care legislation heading for a vote this weekend will have on New York taxpayers and our state's budget. H.R. 3962, the Affordable Health Care for America Act, mandates that all states raise Medicaid enrollment to 150 percent of the federal poverty level. H.R. 3962 also raises the Federal Medical Assistance Percentages (FMAP) to 91 percent of this expansion cost by 2019.
According to estimates by the National Conference of State Legislatures, raising enrollment eligibility to 133 percent of the federal poverty level and capping FMAP at 80 percent would create a cost to the State of New York of $3.032 billion from 2014-2019.
It is apparent then that the additional expansion of eligibility to 150 percent of the poverty line, coupled with the lower compensation rate, will create an even greater burden on New York taxpayers. For this reason, I am seeking your estimate of the projected obligations that passage of H.R. 3962 would have on the State of New York.

Thank you for your timely attention to this matter.

Sincerely,

CHRISTOPHER J. LEE
Member of Congress

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