Study finds NY is one of two states to spend less of its revenue on Medicaid

Jul 23, 2017

A new study finds New York is an outlier in more ways than one when it comes to health care spending. The latest analysis from the Pew Charitable Trusts looked at economic trends in states over a period of 15 years.

Even though New York has consistently spent more than a fifth of its  budget on Medicaid, it is one of only two states to spend a smaller portion of its revenue on the health program for the poor. That’s what Matt McKillop of the Pew Charitable Trusts found when analyzing fiscal data from 2000 through 2015.

"Even as Medicaid spending increased, revenue increased even more -- grew even faster," McKillop said.

McKillop found that in fiscal year 2015 — compared to fiscal year 2000 — New York spent 0.1 cent less of every dollar on Medicaid. That decrease, McKillop says, is significant because it impacts the overall state budget.

"Medicaid’s claim on each revenue dollar effects the share of state resources available for other priorities which would include education, transportation, public safety, etc.," McKillop said.

McKillop also looked at tax trends. He found that New York’s tax revenue has grown faster than other states.

Karen Shakerdge is a reporter for WXXI Radio in Rochester.