Federal Medicaid changes may raise property taxes and cut local services
Any wholesale Medicaid cuts at the federal level will ultimately show up in local property tax levies and in reductions in local services, Essex County Manager Mike Mascarenas told supervisors at a Monday meeting.
Such cuts would be damaging “not only to the population that receives Medicaid, but to those who pay for it,” Mascarenas said. “I’ve been here 25 years, and what I will tell you with certainty is that the (proposed) change to Medicaid is probably the single biggest threat to property tax that I’ve ever witnessed in Essex County.”
Mascarenas’ comments came in response to a presentation by representatives of the North Country Medicaid Coalition, a nonpartisan group of physicians, Medicaid recipients and community leaders cautioning against draconian cuts to the federal program.
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Congressional Republicans are currently negotiating over a White House bill that budget analysts say would cut Medicaid — which pays health care costs for lower-income people, including children and those in nursing homes — somewhere between $600 and $800 billion over 10 years.
Mandated county contributions
In 49 states, federal and state governments share Medicaid costs. But in New York, state law requires the state’s 62 counties to pay into the system as well. That means Medicaid is dependent on local property taxes.
Essex County is required to pay $7 million annually into the system, Mascarenas said. While that sum is presently capped, the state law could be revisited in the wake of steep cuts.
“The devil will be in the details in terms of what that means,” he said. “I’m certainly not an alarmist, but I want all (department heads) to be aware that if Medicaid is not on your agenda it needs to be, regardless if you think Medicaid matters to you or not.”
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Any increase in Medicaid costs would force counties to raise taxes or shift money away from discretionary funds that they spend for things like roads, senior services and education.
“If changes are made to Medicaid and the state then removes that cap to counties, it could result in hundreds of thousands or millions of dollars that would be pushed to the locals,” Mascarenas said. “We are the government of service; we are where the rubber meets the road. So if the Highway (Superintendents) Association isn’t speaking about Medicaid, if education isn’t talking about Medicaid, there’s a big disservice being done there, because it’s going to get to all sectors of service.”
An unstable healthcare system
Speaking for the Medicaid Coalition, Dr. John Rugge, founder of Hudson Headwaters Health Network and Heidi Schempp, administrator of the Elderwood at North Creek nursing home, warned that the Adirondacks is already teetering on the edge of becoming a health care desert, and cuts to medicare threaten the institutions that provide what care there is.
“The price of care has gone up so much, and we have not seen an increase in Medicaid rates, so we’re already struggling, Schempp said. “So any type of impact to Medicaid would be devastating for the nursing home industry.”
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RELATED READING: North Country coalition speaks out on potential Medicaid cuts
Schempp said 70% of North Country nursing home residents depend on Medicaid, about 7% higher than the national average.
And for rural physicians in private practice, Rugge said, the threat to Medicaid is personal. They tend to see the faces of everyone in the community, and will be unlikely to withhold care, even if reimbursements shrink or disappear.
“From my personal experience I know you can’t live and practice in a community like this without being willing, able and happy to treat everybody who comes through your door,” he said.
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But with 28% of North Country residents on Medicaid — and Medicaid patients typically having more health problems than the general population — these private practices would be at risk, Rugge said.
Supervisors were receptive to a resolution in support of Medicaid, while Supervisors Chair Shaun Gillilland noted it is just one of a number of uncertainties in state and federal funding. “Get ready, because this rodeo is going to be a wild ride,” he said.
Photo at top from Canva.com
There is a large majority of Americans who are supporting the current president and the Republicans with reducing services to the majority of Americans in order to pass permanent tax cuts to the ultra-rich and corporations. “Tariffs” are just another word for taxes, and anyone who didn’t think consumers would pay the additional taxes are now finding out otherwise. Seniors on a fixed income cannot absorb additional property taxes. Now is the time for those who have supported the president to speak up and tell their representatives their loyalty can only go so far. It’s no longer a matter of politics and choosing a side. It’s coming down to not being able to afford living in your home and putting food on your table, and especially not being able to see a physician if/when you need one. Americans need to find their voice and speak up now, before it’s too late.
This is untrue: “There is a large majority of Americans who are supporting the current president and the Republicans with reducing services to the majority of Americans in order to pass permanent tax cuts to the ultra-rich and corporations.”
Poll after poll shows Americans, to include a majority of Republicans, do not support cuts to medicaid and various other safety net programs. Our elected representatives are not representing the views of the majority of Americans in order to support billionaires.
You said it, this is no longer D v R, liberal v. conservative but rather fascism that is actively destroying our American way of life, all of it, regardless of who you are or where you live, in favor of a jet set who has no allegiance to our nation or ideals, no respect for our way of life, values or the work we do.
“Now is the time for those who have supported the president to speak up and tell their representatives their loyalty can only go so far”. You really believe that works? Money controls the government and you get to pick from two candidates that money has chosen for you. In terms of wealth distribution, both the US and Russia exhibit high levels of inequality, with a significant portion of national wealth concentrated in the hands of a small percentage of the population. While some data suggests a slightly greater degree of inequality in Russia compared to the US, recent analysis indicates that the two countries are now at similar levels of income inequality. Trump admires Putin and is jealous of his absolute power and wants the same thing in America. Tax cuts for the American oligarchs that are paid for by tariffs and cuts to social safety nets. Trump and the conservative Republicans were up front with what was going to happen if Trump was elected, it was called Project 2025.
Wow Total Deranged Trump Syndrome in evidence in the north country . There are no cuts to medicare for those who qualify. There is huge fraud and if you took the time away from listeneing to NPR left wing propaganda and went to the DOGE site you would see the specific items that are to be cut. Just like Obama said he would do Just like Clinton and even the turnip in chief Biden. There now is a leader that is stopping the waste and fraud and will cut deficits. . We are 34 trillion in debt and if our bonds collapse eveyone will suffer. Any yes well educated republicans wholly support him and lots of young republicans too. BTW how did the last two democrat presidents end up with multi million dollar homes and bank accounts after never doing a single thing in their lives to create anything. Plus flying around with their billioniaire friends and yachting with them. Give me a break, Trump actually made money. The presidents programs will make eveyone in this country safer and more economically secure. Elections have consequences as the second worst dem president once said.
Cool story bro. Since your radar for propaganda is on and pinging perhaps you can share the source of your well considered insights.
I am particularly curious about a) Medicare cuts. I don’t see the word appearing anywhere in this article or the comments. To what are you referring, random musings?
b) Speaking of random musings and propaganda, can you share any source, evidence or example whatsoever, any anything at all, even a made up scenario that you believe represents “huge fraud?” While you’re at it, can you explain why this “huge fraud” isn’t being pursued by the multiple legal recourses available to address such fraud?
c) Can you explain how “stopping the waste and fraud” has resulted in a budget bill that will add a big, beautiful 4 TRILLION dollars to the national debt?
d) can you identify any “educated republican” who has put that education to good use for the benefit of society?
I eagerly await your response to any of the above questions.
JK, I know you have no response.
Wow, threatening property tax hikes to pay for medicaid cuts? Where do you think the federal government gets the money for medicaid? FROM TAX PAYERS!!! We are already paying and local politicians now have and “excuse” to raise taxes to blow money on other stuff!!!
?? did you read the article?
The issue is, medicaid is funded by a mix of federal, state and local taxes. If the federal contribution is reduced, the shortfall, to come anywhere near maintaining the current standard of care, would need to be made up locally. The only local revenue generation is through property taxes. Therefore, reducing medicaid reimbursement would necessarily lead to property tax increases.
The bill currently under consideration raises taxes by 1000 dollars for everyone earning less than $51,000. So, that would mean, property tax increases AND federal tax increases AND less healthcare assistance for lower income people.
But ofc, Essex county fellow isn’t talking about lower income people as property tax is typically the least of their concerns — but rent is, so, any increase in property taxes will also lead to another increase in rent rates thus exacerbating the housing crisis while also causing wealthy Essex county property owners to cover the difference through property taxes thus negating any federal tax benefits they might derive from raising taxes and reducing assistance for low income people.
IOW, robbing the poor to give to the rich won’t work if it involves reducing medicaid reimbursement rates or other medicaid funding cuts but it will pointlessly wreck our local economy, healthcare system and behavioral health systems.