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For Release — Thursday, October 12, 2006

MEDICAID COSTS IN NEW YORK FAR OUTPACE OTHER STATES', PPI ANALYSIS SHOWS

ALBANY—New York's Medicaid spending is more than twice the per-capita national average, both for total spending and for most major program categories, a new Public Policy Institute analysis shows.

As of 2005, New York State led the nation with total Medicaid costs of $43.4 billion -- some $9.5 billion more than second-place California. New York's average of $2,258 in Medicaid spending for every state resident was also the nation's highest, well over twice the national average, and far ahead of states such as Massachusetts, Pennsylvania and New Jersey.

New York's Medicaid spending of $9 billion on hospitals and related forms of care was the highest in the nation, and the state's per-capita spending on hospitals was more than twice the national average. The Empire State was the national leader in Medicaid spending on both nursing homes (at $6.9 billion), and on home- and personal-care programs that are intended to keep older and disabled individuals out of nursing institutions ($7.8 billion).

The Institute analyzed Medicaid spending as the latest installment in its Just The Facts series of key economic and statistical indicators for New York. The analysis is based on data from the Kaiser Family Foundation for fiscal 2005.

New York's overall Medicaid costs remained the nation's highest despite an increase in 2005 of 4 percent that was below the national average of 6 percent.

The state's Medicaid spending on prescription drugs was fourth-highest in the nation, on a per-capita basis, with total costs of $4 billion.

The Institute's Just The Facts series includes 52 tables comparing job growth, the cost of doing business, tax burdens and other key economic and social indicators. The updated figures on Medicaid spending and other Just The Facts tables are available at www.ppinys.org/reports/JustTheFacts.html.