Senator Charles J. Fuschillo, Jr. last week announced that the Senate Medicaid Reform Task Force has recommended that the state take over the local share of the Family Health Plus program and implement other reforms and cost containment that would save state and local taxpayers $2.5 billion over five years. The takeover was recommended as part of the first comprehensive overhaul of the state Medicaid program since it was enacted.

Counties and local property taxpayers would receive nearly $2 billion of the savings that would result from the more than 40 proposals to fundamentally restructure Medicaid to make it more efficient, improve the quality of care and provide fiscal relief to state and local taxpayers.

"It is time that New York State responds to the changing financial situation faced by the local governments and deals with the growing burden that is put on local municipalities," Fuschillo stated. "When the Child Health Plus program was first proposed in 2000, the Senate advocated for the state to finance the program with no local share. Now we see the need to do so after costs to local governments have risen by 625 percent over the last year."

In addition to the takeover of the local share of Family Health Plus, the Task Force recommendations include substantial reforms that will save state government $600 million on top of the nearly $2 billion in local savings over five years.

The panels' recommendations include:

* Reforms to the Long Term Care program, including stronger estate planning provisions

* Reforms to control skyrocketing pharmaceutical costs including the establishment of a preferred drug list

* Establishment of disease management programs to better coordinate care and improve the efficiency of the Medicaid program

* Establishment of a comprehensive utilization review to closely monitor patient use of the system and provider billing of the Medicaid system.

The bipartisan panel worked with a 43-member Advisory Panel, held five public roundtable discussions with 53 participants, received more than 70 document submissions totaling more than 1,000 pages, held 10 public working group meetings, listened to health care providers, consumers, local government officials, academics, advocates and representatives of every sector of society impacted by our health care system regarding the role Medicaid plays in this system.

The Task Force also recommended that state and local officials, together with the New York Congressional Delegation request that federal funds provided through the federal government to increase the Federal Medical Assistance Percentage (FMAP) be extended, which could provide state and local governments $900 million in additional Medicaid relief next year and $1.3 billion the following year.

"These changes are necessary in today's New York and should lead to a more stable relationship between the demands on the local government and the necessity of state money," Fuschillo concluded.