ALBANY – Gov. Pataki pledged yesterday to include a “cost-containment package” for the huge Medicaid program – which could be a boon for fiscally strapped New York City.
Pataki, speaking to Long Island business leaders, didn’t provide any details of his plan, designed to help the state and local governments gain control of what have become runaway Medicaid costs.
State budget experts predicted Pataki’s plan – to be revealed on Wednesday when the governor presents his budget – would sharply cut some hospital services and druggist fees, and eliminate some of the programs now provided for the poor and near-poor.
“Why should the state and local governments be paying for things like Rogaine and Viagra?” asked one expert.
Mayor Bloomberg and local government leaders have been demanding relief from the skyrocketing Medicaid program, which costs the state, city, and county governments about $18 billion a year.
The city must pick up 25 percent of most of its overall cost, or about $3.8 billion, and that cost has been rising by about 10 percent a year.
Pataki, meanwhile, renewed his pledge against seeking an increase in “job-killing” state taxes while managing a projected $12 billion budget deficit.