New York and the Medicaid Maze
"Last spring, some state senate Republicans, concerned about Governor George Pataki’s and Attorney General Eliot Spitzer’s seeming lack of interest in Medicaid fraud, proposed the creation of a kind of super-cop to fight health-care scams. But the Democrat-controlled state assembly blocked the legislation, fearing that the new position would strip power from Spitzer, a fellow Democrat running for governor. Spitzer himself opposed the new fraud unit, arguing that it would impose onerous new costs on New York government, though research has shown that the typical anti-Medicaid-fraud worker recovers, on average, $200,000 per year"
New York is the only large state in the country not supporting its Medicaid fraud units with Medicaid fraud recoveries.
In addition to detailing the history of Medicaid and describing many specific examples of fraud, Malanga argues that this initial healthcare program for the poor has "become a benefactor of the health-care industry, a jobs program, and a gigantic arena of political manipulation."
Special interests have consumed this Great Society entitlement.
"Medical transportation firms hired the state senate majority leader’s son as a lobbyist; he helped protect their funding, despite the fact that much of it isn’t necessary. State hospitals have also joined with New York’s top union boss, Dennis Rivera of the hospital workers’ Local 1199, to pressure both Democrats and Republicans to funnel extra revenues into what is already the country’s largest Medicaid program, warning that any attempt to restrict the flow of tax dollars would imperil the state’s fragile hospitals and cost thousands of jobs."
Rivera and 1199 hold State lawmakers hostage politically, in our opinion, like most unions promising to deliver its "rank and file" as votes around election time to endorsed candidates.
Malanga's article focuses on what has worked in other states, what has failed in New York and what must be done to rein in this rapidly expanding government budget -- one that now encompasses nearly half of the State budget.
It's a must read for all elected officials and potential challengers this spring. Count on it being regularly quoted and included in most campaign literature this summer and fall.
Comments