Politics on the Hudson

U.S. Sen. Charles Schumer said today that the federal government could be coming to New York’s financial rescue with at least $5 billion a year for Medicaid.

The relief would be part of a federal bailout proposal being drawn up by President-elect Barack Obama and congressional leaders. It is expected to total between $80 billion and $100 billion this year in Medicaid funding for states in addition to money for infrastructure maintenance and improvement, according to Schumer.

Schumer said the proposal being discussed would temporarily boost New York’s Medicaid reimbursement rate by about 10 percent, which would yield an extra $5 billion annually for the state.

The federal government, state and counties share the cost of Medicaid, but New York receives a smaller percentage of the total cost than other states because of its wealth. New York spends more per capita ($2,283) on Medicaid, a $45 billion program, than any other state in the country and more than twice the national average ($1,026). Congress and the Obama administration hope to have the stimulus package passed by Congress and signed into law by the end of January, Schumer said.