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New Television Ad: Use Stimulus Funds

The Healthcare Education Project (HEP), a joint initiative of 1199SEIU and the Greater New York Hospital Association (GNYHA) has begun airing two new television ads urging Governor David Paterson to use a portion of the nearly $11 billion in Medicaid funding New York State will receive under the federal economic stimulus package to avoid massive health care cuts to hospitals, nursing homes, and home care.

The new ad, which praises President Obama for recognizing states’ dire need for fiscal relief, is part of HEP’s ongoing campaign to educate New Yorkers about the hugely destructive effect Governor Paterson’s proposed $3.5 billion in health care cuts—including $2 billion in cuts to hospitals, nursing homes, and home health—would have on patients and communities across New York.

The ad will help correct the inaccurate notion that the Medicaid funds in the stimulus bill automatically address the budget concerns of New York’s hospitals, nursing homes, and home care providers.


Facts Video:


The stimulus bill provides New York State with $10.9 billion in Medicaid funding via an increase in the federal Medicaid matching rate (known as FMAP) over the next 27 months, including $6.9 billion for state fiscal years 2008-09 and 2009-10, or $4.6 billion after counties receive their share. Unlike the stimulus bill’s education funds, which must be dedicated to schools, Congress does not require that New York direct the FMAP funds to the state’s Medicaid program, although doing so would dramatically reduce the need for the governor’s proposed health care cuts, which would severely disrupt access to care across the entire state.

“If properly allocated,’ said 1199SEIU President George Gresham, “the Medicaid funds President Obama and Congress are sending to New York will help protect essential healthcare services for our most vulnerable residents while preventing devastating healthcare cuts that will only make things worse. With hospitals, nursing homes, and home care providers already struggling just to survive, using the Medicaid relief funds any other way just doesn’t make sense.”


Times Of Need Video:


The Healthcare Education Project has advocated for a “5-5-5 plan” to reduce New York’s budget deficit via $5 billion in increased Federal funding, $5 billion in increased revenue from domestic sources, and $5 billion in other State actions, including equitable spending cuts spread across all sectors. GNYHA and 1199 have also urged Governor Paterson to access the State’s rainy day funds, develop a plan to reduce hospitals’ suffocating medical malpractice costs, and pursue reforms to HMOs and insurance companies, whose bloated profits come at the expense of hospitals and the communities they serve.