Federal Cuts to Medicaid funding proposed in New York State

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ALBANY, NY (WENY) — A new proposal in the 2023 New York State budget would change the way Medicaid funding is distributed across the Empire State.

Steuben County Manager Jack Wheeler says a cut to federal funding earmarked for counties and changing the distribution model will lead to the county losing $2.5 million in 2023 alone.

“In the out years, we’re talking millions; probably upwards of $6 million in the long run for Steuben County,” Steuben County Manager Jack Wheeler, said.

If the proposal goes through — Wheeler explained it would hurt the Affordable Care Act’s enhanced eFMAP in New York and how it assists counties in providing needed services. The enhanced Federal Medical Assistance Percentage, or eFMAP, helps participating counties have more flexibility through shared Medicaid funds.

Wheeler explained how this plan takes tax dollars away from paying counties.

“It should be shared equally in our view that the federal legislation is written, “Wheeler said, adding, “I’ve been here 15 years, and this is by far the worst proposed budget for counties that I’ve seen come out of Albany.”

Members of New York’s Association of Counties began meeting with state lawmakers on Monday about issues that will impact local governments, including the federal Medicaid Funding cuts. It’s not set in stone yet whether the funding model will change as budget negotiations continue in the state capitol.


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