Helping Medicaid is a critical piece of New York Gov. David Paterson's request for federal aid to states, as outlined in a letter Monday to President-elect Barack Obama.
Paterson joins other governors from across the country who are asking the federal government for direct aid to states and funding of critical infrastructure projects.
Paterson also asked Congress to consider a $500 billion package to help stimulate state economies, including $250 billion for countercyclical programs such as Federal Medicaid Assistance Percentages (FMAP).
"As a result of the current recession, states' Medicaid rolls have expanded dramatically, increasing the burden on already stressed state budgets," he wrote. "A temporary increase in FMAP would help states like New York that are forced to consider significant cuts to healthcare and other essential services. The Medicaid match rate should be temporarily increased to provide $200 billion over at least two years to mitigate cuts to these programs."
Paterson also called for help with unemployment insurance, food stamps, Temporary Assistance for Needy Families (TANF) and childcare and $250 billion for flexible education block grants to states.
As part of his request for infrastructure assistance, he called for $20 billion to help states with healthcare IT projects.
"With seven health IT projects that are ready to go, New York estimates that we are ready to obligate in excess of $300 million within 180 days to implement a plan for health information exchange and $1 billion for provider electronic health records," Paterson said. "A national investment of $20 billion is necessary to implement qualified statewide programs and to promote the adoption of electronic health records by physicians and hospitals."
The request for healthcare IT investment came under a call for $300 billion for infrastructure investments.
Besides healthcare information technology, the ready-to-go infrastructure projects include rehabilitation and construction of transportation, water, schools, housing and broadband services.
"No state has been more severely impacted by this crisis than New York, the home of Wall Street and the global capital of business and finance," said Paterson. "Our recovery plan includes initiatives that the Empire State needs the most right now - not only to overcome the current crisis, but to begin laying the foundation for the economy of the future."
Paterson said that since meeting with Obama in Philadelphia earlier this month he has consulted with fellow governors, including Deval Patrick (Massachusetts), Jennifer Granholm (Michigan), Jon Corzine (New Jersey), Ted Strickland (Ohio) and Jim Doyle (Wisconsin), regarding the appropriate size and scope of legislation to stimulate our economy and put Americans back to work.