Friday, March 13, 2009

Weiner Urges Paterson to Increase City Medicaid Funding

NEWS: Weiner Urges Paterson to Increase City Medicaid Funding

Says State Plan Shorts City Up to $900 Million in Stimulus - Letter to Governor Says It Is ‘Simply Unsatisfactory’

Representative Anthony Weiner (D – Brooklyn and Queens), the New York City Democratic Whip, today sent the following letter to Governor Paterson:

March 5, 2009

The Honorable David A. Paterson

Governor of the State of New York

State Capitol

Albany, NY 12224

Dear Governor Paterson:

As a member of Congress who helped write the American Recovery and Reinvestment Act, and, most importantly, as a member of the New York City delegation, I write to express my concern that the state’s plan to allocate Medicaid savings shorts New York City.

In New York State, the federal government covers 50 percent of the Federal Medicaid Assistance Percentage (FMAP) program costs, while the state and counties cover the other 50 percent. The State then pays roughly 66 percent of the non-federal portion of FMAP, with the localities paying the other 34 percent. Yesterday, when you announced the local shares under the FMAP program for New York City and all the counties, there is a clear discrepancy in funding allocations. The State is not keeping 66 percent, the percentage it pays into the program, of the FMAP funds, but instead is keeping between 76 and 80 percent.

The FMAP program provisions of Public Law 111-5, the American Recovery and Reinvestment Act are clear in providing that localities that bear the burden of Medicaid costs see their share of fiscal relief. If properly allocated, the City of New York should receive up to $2.8 billion. Under the announcement by your staff, the City would be shorted up to $900 million. This is simply unsatisfactory.

I look forward to your prompt compliance with the intent of Public Law 111-5.



Member of Congress