Many of you have probably heard about the major Medicaid fraud scandals in New York State that were revealed recently by the New York Times. The Times investigative reporters discovered that our state may be losing between 4.5 and 17.8 billion dollars each year. We've summarized the story here.
STIC is a Medicaid service provider. A large portion of our annual budget comes from Medicaid fees we collect for providing Consumer Directed Personal Assistance, OMRDD Home and Community-Based Waiver, and some supported employment services.
Each year tens of thousands of people with disabilities in our state benefit from Medicaid-funded service systems that, though far from perfect, do provide supports and services that help them to be as independent as possible in their communities. In many cases, there are simply no available substitutes for these services.
So STIC is intimately concerned about this issue. The steps that New York State takes in response to these revelations will have a potentially profound effect on the people we serve and on our ability to serve them.
And those are mighty big numbers. They are the kinds of numbers that really get people's attention. The kinds of numbers that make taxpayers really angry, and rightfully so. The kinds of numbers that make politicians want to hold somebody accountable, and rightfully so. The kinds of numbers that can lead to a lynch-mob mentality.
So before we get out the ropes and ladders and start inviting honest Medicaid providers like STIC to come out and swing, let's take a breath and look at some facts:
Across New York State, thousands of law-abiding disability service providers receive Medicaid funds. In order to do so, existing law and regulation requires them to maintain extensive records and submit detailed reports on the services billed for. The cost of all this recordkeeping and reporting is very high. Those costs are paid by taxpayers and they cut deeply into the ability of providers to actually deliver the services being paid for. Yet the scandals reported by the Times occurred exclusively because the state's Department of Health (DOH) either did not make sure that all of this expensive, legally-required information was provided or did not inspect it to detect suspicious trends before payments were made-things that the Times found were easy to do.
As the Times and other sources have reported, Governor Pataki and both houses of the State Legislature are heavily supported by health industry lobbyists. DOH's Medicaid oversight resources have been continuously cut back for several years running. The signs of impending disaster began to appear years ago when DOH-regulated nursing homes started showing a rising number of serious deficiencies, and became obvious when the Times revealed massive fraud and neglect in DOH-regulated adult "homes". Yet through all this, none of the state's top leaders demonstrated more than token interest in addressing this problem--that is, not until the muck raised by the latest Times investigation splattered directly on their shoulders.
Now that these people have been caught with their slacks around their Guccis they'll be stumbling and falling all over themselves and each other looking for people to blame. There is a real fear that this scandal will bring down a crushing new paperwork burden on providers who are already submitting more than enough information to enable officials to determine whether charges are legitimate--if only they bother to look at it. Increasing reporting requirements without increasing oversight in Albany will do nothing to prevent fraud. And if existing data is properly tracked and analyzed in Albany by people who are not beholden to or overseen by health industry lobbyists, there will be no need to ask providers for anything more than the law already demands.
So if angry politicians are looking for someone to hold accountable for this mess, they ought to look in the mirror. Of course, that's likely to be too painful for a lot of them, and some of them--or at least one of them--may see this as a golden opportunity to gain national fame as a defender of taxpayers' sacred property rights and the notion that Christian charity begins at home by finally getting those deep Medicaid cuts that they have been trying to achieve for over a decade. Surely this will be a popular populist piece of cake in a monstrous scandal's wake?
Think again.
The Kaiser Family Foundation commissioned a poll in April 2005 to find out about Americans' attitudes toward Medicaid. Despite long-running efforts by Congressional Republicans and Bush Administration officials, as well as state and local politicians, to disparage the efficiency and effectiveness of the Medicaid program, the honesty of its beneficiaries, and the costs to taxpayers of operating it, this poll of a nationally-representative random sample of over 1,200 people found overwhelming evidence that Americans like Medicaid, think it's necessary, and want it to continue and grow.
Here are some highlights, excerpted from the Foundation's press release:
While two-thirds of the public think their state has major budget problems, a substantial majority are reluctant to cut Medicaid to balance state budgets, and a majority think the federal government should maintain (44%) or increase (36%) federal spending on Medicaid.
74% of adults say Medicaid is a "very important" program, ranking it close to Social Security (88%) and Medicare (83%) in the public's mind, equal to federal aid to public schools (74%), and above defense and military spending (57%). About 8 in 10 Democrats (82%) and Independents (79%) view Medicaid as an important government program, while fewer, but still 6 in 10 Republicans (61%) express that view.
About a third of the public believes that Medicaid costs are a major reason for state budget problems. However, 52% say they "strongly" oppose and another 22% "somewhat" oppose cutting back on their state's Medicaid program to balance the budget.
So we'd like to remind any politicians who are planning to use this debacle to ride a wave of public indignation into Medicaid-cutting Valhalla in time for the next set of elections that this approach may leave them up a creek without a paddle.