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State Legislators Agree to Added Health Spending

By Mark Scott

Buffalo, NY – State lawmakers Thursday nearly doubled, to $700 million, the amount of money they propose to spend on health programs in the state's next fiscal year.

Legislators say the extra spending will be paid for through new revenues -- including expected rebates from drug companies and savings from the federal government's takeover of prescription drug costs for senior citizens.

Legislators also agreed Thursday to raise the Medicaid reimbursement rate to hospitals for emergency room treatment for the first time in 15 years. The rate would rise from $95 to $150.

Critics worry the extra spending lawmakers are approving cannot be sustained. Analyst E.J. McMahon with the conservative leaning Empire Center for New York State Policy says it's all a result of the state having a big budget surplus this year. McMahon says the Legislature is looking for -- quoting here, "an election year blowout."

Governor Pataki and legislative leaders will soon try to negotiate a final budget by the April 1 deadline.