Senator Kemp Hannon announced the creation of the Senate Task Force on Medicaid Reform, a panel that will develop a long-term vision for making the Medicaid Program in New York State more efficient while providing quality affordable health care. The bipartisan task force will be chaired by Hannon, chairman of the Senator Health Committee and Senator Raymond Meier, chairman of the Senate Social Services Committee.

"New York State has always been the flagship in meeting the health care needs of its residents, but the ship is about to sink with the growth of the Medicaid program," Hannon said. "As co-chair of the Medicaid Reform Task Force, I look forward to the challenges before us. It is time for thoughtful and meaningful analysis and public debate for true reform."

Since 1995, Medicaid spending has increased by $17 billion or 68 percent to $41.3 billion in SFY 2003-04, reflecting 22.8 percent of all state spending. Of that $41.3 billion, the state's share of Medicaid spending is $13.8 billion, the county share is $6.4 billion and the federal share is $21 billion. The legislature restored $1 billion in state funding to the existing system this year just to maintain current health care service levels.

The Task Force will focus on the three largest and fastest growing categories of Medicaid spending: long-term care, acute care and pharmaceuticals.

"This Task Force is a serious, bipartisan effort to bring real reforms and a long-term vision for the state's Medicaid program that will reign in spending, provide relief for the state's budget, as well as for county budgets and local property taxpayers, while ensuring support for a strong health care system," added Hannon.

The Task force is scheduled to make recommendations that can be implemented as part of the 2004-05 state budget.