Cayuga County Manager Wayne Allen is asking county legislators to choose a Medicaid payment plan that he says prevents the county from planning for a large unknown expense in future budgets.

In 2005, the state recognized the uncontrollable growth of the state's Medicaid Program and came up with a system to control costs to counties.

By September, legislators must decide whether they want to pay a certain percentage of their local sales tax, an incentive the state calls the sales tax intercept, or go with the cap payment option that Allen recommends.

The change in payment method commences Jan. 1, 2008.

Allen's advice received full support from the seven-member Ways and Means Committee Tuesday night. Allen suggested legislators select the capped Medicaid payment, which will grow at defined annual rates.

Almost half of the county's tax levy, the tax charges to county residents, is comprised of the county's Medicaid costs, a program mandated by the federal government.

The county's Medicaid costs were budgeted at $12.79 million in this year's budget, representing 41 percent of the tax levy.

The Medicaid program was established in the 1960s to act as an instrument providing health services to the poor and disadvantaged. By selecting the cap option, the county will no longer be subject to large spikes of Medicaid growth in the future.

Medicaid will be increased about $350,000 each year, according to state statistics. The cap option places a 3-percent maximum increase to Medicaid costs each year.

“Now there isn't this unknown each year. You can't do this to local governments anymore,” Allen told committee members Tuesday night.

“Your best interest is to go along with the cap,” Allen said. “Numbers clearly indicate the cap is in your best interest.”

In the sales tax intercept option, the state uses a statewide formula which determines the percentage of county sales tax revenue that will be intercepted by the state.

Staff writer Kristina Martino can be reached at 253-5311 ext. 238 or kristina.martino@lee.net

Medicaid cap payment option

Year Medicaid Cap % increase

2005 $11,747,433 -

2006 $12,158,593 3.5

2007 $12,540,385 3.14

2008 $12,892,808 2.81

2009 $13,245,231 2.73

2010 $13,597,654 2.66

2011 $13,950,077 2.59

2012 $14,302,500 2.53

2013 $14,654,923 2.46