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New York State’s white card expenditure increased to 133.7 billion yuan this fiscal year, an increase of nearly 50% in five years. This is largely due to an aging population and rising medical and long-term care costs. Although the growth rate will be slow in the future, the financial pressure cannot be ignored.
new York State white card (Medicaid) spending continues to increase. According to the latest financial report released by the state government, the state’s white card expenditure is expected to reach 133.7 billion yuan this fiscal year, an increase of about 44.4 billion yuan from five years ago, an increase of nearly 50%. Aging population, rising medical costs and increasing demand for home care and long-term care for the elderly are the main reasons for the rapid increase in expenditure.
Bloomberg reported that the New York State Budget Office recently released an updated report on the mid-term fiscal plan for fiscal year 2027, which shows that white card spending has increased from 89.3 billion yuan in fiscal year 2022 to an estimated 133.7 billion yuan in fiscal year 2027, an increase of about 44.4 billion yuan over five years. New York State’s current fiscal year begins on April 1, 2026, and ends on March 31, 2027.
The White Card provides medical coverage primarily for low-income families, the elderly, and people with disabilities, and funding is jointly borne by federal, state, and local governments. According to the latest budget, of the 133.7 billion yuan to be spent in fiscal year 2027, the federal government will bear about 76.9 billion yuan, the state government will bear about 48 billion yuan and the remaining about 8.8 billion yuan.new york city And distributed among each county.
The state government pointed out that the increase in expenditure is not merely related to the increase in utilization of medical services. Rising payment standards at hospitals and nursing homes, rising prices of prescription drugs, and increased demand for home personal care services have also driven up total costs.
Among these, care of the elderly is considered an important factor. State government financial reports show that managed long-term care plans (managed long-term care, known as MLTC or long-term care), as well as other plans that serve the elderly and those who participate in both the White Card and the federal red and blue cards (Medicare), currently account for about 60% of total White Card spending, and are expected to be closer to 70% by 2028.
MLTC primarily provides home care, personal care, and other services to the elderly and disabled who require long-term care, so that those in need can continue to live in the community without relying solely on nursing homes.
As baby boomers age, demand is expected to increase further. The state estimates that by 2030, residents over the age of 65 will make up 21% of the state’s total population, up from 13% in 2010. Demographic changes will place long-term care as a continuing strain on state finances.
It is worth noting that although White Card expenditure has increased by almost 50% in the last five years, the state government estimates that the growth in expenditure will slow significantly over the next two financial years. According to the latest plan, white card spending is expected to reach about 135 billion yuan in fiscal year 2028, an increase of about 1% from last year; In fiscal year 2029, it will be about 137 billion yuan, an increase of about 1.5%.
However, the state government also warned in its fiscal report that actual expenditures may exceed expectations in the future due to factors such as continued increases in medical costs and expanding long-term care needs. In the absence of effective cost control measures, the long-term financial sustainability of the White Card program will still face challenges.
Summary FAQ
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According to the latest financial report of the state government, New York State’s white card expenditure is expected to reach 133.7 billion yuan in fiscal year 2027, an increase of about 44.4 billion yuan from 89.3 billion yuan in fiscal year 2022, an increase of nearly 50% in five years.
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The main reasons include an aging population, rising medical costs, rising hospital and nursing home payments, rising prescription drug prices, and a continued increase in demand for home care and personal care for the elderly.
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The state government estimates that growth in white card spending will slow to about 1% and 1.5% in fiscal years 2028 and 2029, but also warns that if cost containment is inadequate, the expansion of demand for medical care and long-term care could still cause actual spending to exceed expectations.
