New York state is paying health insurers $100 million a year to market Medicaid to the state’s low-income and poor — a hefty subsidy that is often misused, an explosive state study suggests.
The Health Department analysis found that instead of using those government funds to enroll new Medicaid patients, some HMOs are using the money to poach patients from rivals — illegally.
“Marketing costs are largely spent by health plans to attract members of other plans. They do not focus on enrolling the uninsured,” the planning document said.
Health officials question whether the program is even necessary — with 84 percent of the state’s Medicaid-eligible people already on the rolls in managed-care programs statewide.
Gov. Cuomo has convened a team of experts to recommend ways to rein in New York’s $50 billion Medicaid program as he seeks to close a $10 billion budget gap.
The proposal to abolish the marketing program would save Medicaid $113.6 million a year.