ALBANY - Senate Republican Leader Dean Skelos sent a letter to Attorney General Andrew Cuomo and Governor David Paterson, urging New York to join other states that are considering a legal challenge to what he calls a questionable deal that secured the vote of a Nebraska Senator on federal health care reform legislation, a bill that could add to the Medicaid burden on New York taxpayers.

Charges have been made that this compromise was nothing more than vote buying to secure last-minute support from Nebraska Senator Ben Nelson.  The lawsuit planned by Attorneys General of seven states: Texas, South Carolina, Alabama, Colorado, Washington, Michigan and North Dakota, would challenge the constitutionality of a deal that would permanently exempt Nebraska from billions of dollars in Medicaid costs that would result from the health care reform bill passed by the United States Senate and would cause other states, including New York, to pay more for Medicaid.

“If such an action is pursued, New York should join with these states to protect the best interests of our taxpayers who stand to lose more than $1 billion from the proposed health care reform legislation” said Skelos, in his letter. “An unfair federal Medicaid reimbursement level already shortchanges our state.  And now, because of a questionable vote-buying deal, that burden could increase significantly.  If it takes legal action by the states to prevent such clear discrimination then I urge both of you to support such a suit.”

In addition to joining any legal challenge, Skelos said U.S. Senators Schumer and Gillibrand, as well as New York’s congressional delegation, should be working to secure a fair level of Medicaid reimbursement.  

“While other states will see an increase in their federal Medicaid reimbursement, New York’s share continues to languish well behind what other states receive. The level of federal reimbursement is unfair and is costing New York taxpayers billions of dollars,” Senator Skelos wrote.

Senator Skelos also cited Medicaid audits by the state Comptroller’s office and other recent news stories regarding millions of dollars lost to Medicaid waste and abuse in calling for increased efforts to prevent fraud.