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For immediate release: Contact:

August 3, 2010 Lara Kassel, Coordinator


518-320-7100 office, 518-331-6758 cell

Statement regarding FMAP contingency plan


“The Legislature has passed a bill that would create a contingency plan should Congress not
come through with an extension of the current enhancement of the Federal Medical Assistance
Percentage, or FMAP. The plan would fill the gap anticipated should the FMAP extension not
come to fruition by imposing across-the-board cuts to state funds, including a significant hit to
Medicaid.

“Medicaid Matters New York has long opposed across-the-board Medicaid cuts, as they impact
community-based programs and safety-net providers in a disproportionate way. The
organizations and providers that open their doors to or go directly to the doors of Medicaid
consumers seeking care and services must be protected. In addition, we must not forget that a
cut to state Medicaid spending equates to a larger cut overall because of an automatic loss of
Federal matching funds. Cuts of this magnitude could be avoided by enacting real revenue
options, such as the sugar-sweetened beverage tax. Our Medicaid program and the people
who need it deserve state budgeting that is smart and strategic, not short-sighted and
politically expedient.

“Significant strides have been made to ensure that public dollars be spent in the best possible
way for New York’s Medicaid program. However, actions to make sweeping across-the-board
cuts would only serve to undermine what has been accomplished to this point, especially as the
implementation of Federal health reform happens.

“We urge Congress to come through with an extension of the FMAP enhancement without
further delay. Should they neglect to do that, the Governor and the Legislature must use their
authority under this contingency plan in a way that is fair and makes sense to the health and
well-being of all New Yorkers.”

Medicaid Matters NY (MMNY) is a coalition of over 130 organizations representing those New Yorkers most
affected by policy debates on Medicaid. For over six years, MMNY has brought the concerns and voices of Medicaid
recipients to the table in Albany. MMNY is unique in that it is the only organized, statewide coalition that speaks
solely for Medicaid beneficiaries.

For more information, contact Lara Kassel, MMNY Coordinator


at 518-320-7100 or lkassel@cdrnys.org