Hochul is critical of Collins for trying to shift counties’ Medicaid costs to state
Our Founding Fathers warned us this day would come. Partisan politics would overtake good government for the people. The Medicaid changes being proposed in Washington would cut taxes for wealthy special interests while devastating New York State’s finances and all but eliminating health care for the most vulnerable New Yorkers.
What’s worse, a New York Republican Congressman, Chris Collins is offering an amendment that would wreak havoc on the state. While I understand that the Democrats in Washington are attacking Collins on ethics issues and are having a heated political fight, they shouldn’t be played out at the expense of everyday New Yorkers.
Here are the facts: The overall Medicaid plan would cost the state billions of dollars of lost federal funds and jeopardize hospital stability. As if that were not enough, Rep. Collins would have the state assume the counties’ share of Medicaid expenses outside of New York City. The current breakdown is 13 percent county, 36 percent state, and 51 percent federal. This ill-conceived plan would cost his home state approximately $2.3 billion. Unbelievably, that’s on top of the cost of the Republican Affordable Care Act repeal plan – another $2.4 billion.
Translation: Rep. Collins is proposing a tax increase on New Yorkers to the tune of $4.7 billion. This one-two punch would destroy all the hard work the Governor and Legislature have accomplished in the last six years to lower taxes across the board and achieve the lowest spending increases in recorded history. New Yorkers will be at risk of losing their healthcare, hospitals will be forced to lay off workers, and our vulnerable elderly will find it much harder to afford nursing home care.
On the merits, the counties have no right to claim this is an undue burden. They paid a percentage of health care costs even before Medicaid – and in fact, currently have a more favorable agreement than in decades.
In 1960 – well before New York State and most counties had any sales tax revenue to pay for it – Congress passed the Kerr-Mills Act, which created a national role in funding health care for the elderly. Under this program, the counties in New York paid approximately 44 percent of the cost of care, the state paid about 38 percent, and the federal government paid around 18 percent.
In 1965, Medicaid replaced that program and the counties paid 25 percent. That same year, the state began giving counties the option of collecting sales tax on their behalf. Every county in New York has subsequently agreed to this option. Many counties in the nation don’t get sales tax, and most of those receive less than our counties. Moreover, the state recently agreed to give the counties additional help – after hearing the counties’ complaints of the growing Medicaid costs, the state has held them harmless for any increases since 2011.
As a result, the counties’ share for Medicaid is down from 25 percent to 13 percent, and the state assumed this cost while still living within the 2 percent spending cap, and all while cutting taxes. The state is not asking the counties to do anything more than we have done ourselves. In fact, the state has done far more. If the Collins amendment passed, the state would need to raise income taxes or the counties would have to forego their share of sales tax in exchange for the state picking up the additional Medicaid costs.
In short, Rep. Collins’ amendment and the Affordable Care Act repeal would transfer $4.7 billion in costs to the state which would translate into a new tax for New Yorkers. I know firsthand that the people of the 27th Congressional District face enough challenges in their lives – they don’t need to worry about increasing health care costs or new taxes.
Rep. Collins should stop prioritizing his wealthy friends and start helping his home state by protecting the most vulnerable from losing their healthcare and putting the state budget at risk. Remember, as my mentor Sen. Daniel Patrick Moynihan used to always point out, New York is a donor state – we pay more in federal taxes than we receive back.
Mr. Collins, try practicing good government rather than partisan politics.”
Lt. Gov. Kathy Hochul