Medicare Budget Cuts May Be On The Way

David Paterson, Governor of New York has proposed a cut in the state budget by one percent. $506 mn in Medicaid cuts is part of this proposal. This is being done to avoid a budget deficit that is casting it’s shadow on the financials of New York. State lawmakers have been asked to return to Albany in order to find a solution. This would involve reopening the budget, considering the cuts Paterson has proposed or finding solutions to tackle a deficit in the budget of upto %6.4 bn next year.

 

The proposal by Paterson involves slowing Medicaid growth in spending. The cuts in Medicaid include $269 mn for nursing homes and hospitals. According to Paterson, this spending frenzy has to stop. In addition there has to be more accountability. The need of the hour was real and reoccurring cuts according to Paterson. 

Paterson says that this problem can get very serious and this has to be understood. Dean Skelos, State Senate Majority Leader says that the correct option was to collect tobacco taxes from products sold on American Indian reservations which would amount to $400 mn annually. Another option was to reduce Medicare fraud according to him.

The best option is to improve health maintenance programs including a more personal participation by eating healthy, exercise and overall maintenance of the body and mind. This would result in fewer illnesses and hospitalizations