Cost reform saves state Medicaid program $600M

Cost reform initiatives brought into New York's Medicaid program have saved it $600 million so far in 2011, reports WTEN.

The program's cost containment included 73 mandates from the state's Medicaid Redesign Team. It was created earlier this year at the order of Gov. Andrew Cuomo.

Medicaid is a $53 billion program in the Empire State, and the goal is to cut the program by $2.2 billion during this fiscal year.

Cuts have come by reducing payments to hospitals and transitioning the state's 4.3 million enrollees into managed care programs. Spending is also being more closely monitored using sophisticated IT tools.

"Although spending remains on target, enrollment growth influenced by the weak economy may impact savings in the current year," New York Health Commissioner Nirav R. Shah said in a statement. "We will continue to closely monitor spending and operational trends to ensure that the state remains within the Global Medicaid Cap."

For more information:
- read the WTEN article
- read press release