Schumer: Senate Passes Critical Medicaid Fix that Levels Playing Field for NY and 10 Other States with Comprehensive Medicaid Programs - Fix Will Boost NY's Budget by $1.3 Billion in 2014

Press Release

U.S. Senator Charles E. Schumer announced Thursday that the Senate has given final approval to legislation containing a critical Medicaid boost for New York and ten similar states that already cover a broad range of low-income individuals through the Medicaid program. Under the Senate's original healthcare bill, New York's federal reimbursement match would have remained at its historical 50 percent level for certain populations. Under the "fixes" bill approved today, that match rate for New York State will increase significantly to 75 percent in 2014, 80 percent in 2015, 85 percent in 2016, 86 percent in 2017, 90 percent in 2018, and 93 percent for 2019 to accommodate states that have expanded their Medicaid programs already.

This will mean an extra $1.3 billion for New York in 2014 alone, according to state estimates. That represents a $2.1 billion turnaround compared to the original Senate bill.

"This is a huge win that New York has fought for since the days of Senator Daniel Patrick Moynihan. This change means that New York will start to get back more of the money it sends to Washington. It could save New York state and the City billions of dollars over the next few years," Schumer said. "This issue was rightfully a sticking point for the whole New York delegation because we wanted to make sure this bill was the best it could be for New York. The bill signed by President Obama will be a huge improvement for New York over the original bill."

Under the reconciliation bill passed today, all states will receive a 93% match for its population of childless adults in 2019 -- thus creating parity that did not exist in the Senate bill. This change eliminates the disparity in the match rate that existed under the original Senate bill and acknowledges the progress that states like New York have already made in covering Medicaid beneficiaries. Under the new bill, New York will not only receive a boost in their FMAP for any new Medicaid enrollees with incomes between 100 percent and 133 percent of poverty, but will also receive the same higher reimbursement for existing enrollees below that income range.

In the negotiations between the House and the Senate that produced the bill passed today, Senator Schumer took the lead in proposing a level playing field approach for "do-gooder" states like New York and 10 others. Working with his New York colleagues in the House, Senator Schumer succeeded in securing a level playing field approach in the reconciliation bill that was unveiled today.

In the reconciliation bill, New York's FMAP match rate will get a graduated and significant boost for New Yorkers that they have been covering for over a decade (childless adults up to 100% of poverty) and for all the newly enrolled, newly eligible childless adults. That reimbursement rate would be increased significantly to 75 percent in 2014, 80 percent in 2015, 85 percent in 2016, 86 percent in 2017, 90 percent in 2018, and then up to 93 percent for 2019.

Schumer said the enhanced FMAP match rate was one of several measures by which the legislation passed today will benefit New York. Among other highlights:

· Tax credits for up to 250,000 New York small businesses to help make coverage more affordable.

· Prohibit insurance companies from excluding coverage of pre-existing conditions for 4.4 million children in New York, starting this year.

· Close the donut hole and improve other Medicare benefits for 3 million New York seniors.

· Allow 2 million New York young adults to stay on their parents' insurance plans.

· Ensure affordable coverage options for 2.7 million New Yorkers who are uninsured and 734,000 New Yorkers who purchase health insurance through the individual market.

· Provide tax credits for up to 1.6 million New Yorkers to help make health insurance more affordable -- bringing $26 billion in premium and cost sharing tax credits into New York.

· Reduce family health insurance premiums by $1,640 - $2,350 in New York, compared to what they would have been without health care reform in just 5 years.

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