[Copied from a letter by Joseph L. Bruno of the New York State Senate.]

August 18, 2005

Senator Charles Schumer
313 Hart Senate Building
Washington, D.C. 20510

Senator Schumer,

Last week, at a public forum in Glens Falls, you criticized State government for not doing enough to reduce the local share of Medicaid.  In fact, the State is doing a great deal to reduce the local share of Medicaid.  Rather than simply offering criticism and finger pointing, there are several constructive actions you could take to help New York address the Medicaid problem, including fighting for an increase in the federal share New York receives for Medicaid.  First, let me inform you on what the State Senate is doing on Medicaid reform.

This year, the Legislature approved a cap on local Medicaid costs and an accelerated State takeover of local Family Health Plus costs that will save local taxpayers more than $3 billion.  The Family Health Plus takeover was an initiative first proposed by the Senate Majority,
through our Medicaid Reform Task Force that recommended Medicaid reforms that would save State and local taxpayers $2.5 billion, while ensuring that New Yorkers continue to receive quality care.  Unfortunately, the Assembly would not support most of the Medicaid
reforms proposed by the Senate.

In addition, the Senate has lead [sic] the fight against Medicaid fraud by passing a bill, sponsored by Senator Dean Skelos, to strengthen the state's efforts to root out and stop Medicaid fraud and improve accountability for Medicaid spending.  However, the Assembly
refused to pass the Senate's bill.  Governor Pataki did seize upon the main recommendation of the Senate plan by appointing a Medicaid Inspector General.  The Senate Medicaid Reform Task Force will hold a series of statewide hearings on Medicaid fraud to build support for
State action on a problem that is costing New York taxpayers billions of dollars.

The Senate will continue to work on reforming Medicaid and cracking down on fraud, and we will keep fighting for new measures until we get laws enacted that adequately address the problem.  There are several things that you and your colleague Senator Clinton could do to be
helpful.

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Henry J. Stern starquest@nycivic.org
New York Civic
520 Eighth Avenue
22nd Floor
New York, NY 10018

(212) 564-4441
(212) 564-5588 (fax)