January 13, 2004

New York Health Care Reform Working Group Interim Report

While New York continues to enjoy the finest health care system in the nation, we are faced with an indisputable fact that health care costs continue to rise sharply each year, placing greater financial pressure on the State and local governments, private employers and consumers. In this period of fiscal difficulty, we must closely review government operations, including our health care system, in a comprehensive manner to ensure high quality and affordable service delivery. The Medicaid program has grown into an extremely complex system with a maze of federal regulations and laws. This coming fiscal year, if left unchecked, Medicaid will grow by approximately $2 billion, becoming a $44 billion program. State and local governments can no longer afford the current Medicaid program without substantive reforms.