Hochul Faces Criticism for Soaring Medicaid Costs

Governor accused of prioritizing health care industry over taxpayers

Published on Feb. 27, 2026

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New York Governor Kathy Hochul has faced criticism for allowing the state's Medicaid costs to soar by 60% over her four budgets, roughly five times the rate of inflation. Her latest proposal would add another 10% to Medicaid spending, which critics say is more about buying political support from the health care lobby than improving care for patients.

Why it matters

Medicaid is a critical program that provides health coverage for millions of low-income New Yorkers, but the rapid growth in spending raises concerns about the program's long-term sustainability and whether taxpayers are getting good value. There are questions about whether the increased funding is leading to better health outcomes or just higher profits for the health care industry.

The details

Hochul's Medicaid budgets have increased state spending by 60% over four years, far outpacing inflation. Her latest proposal would add another 10% to Medicaid costs, bringing the total to $28 billion more than when she took office. However, Medicaid enrollment is declining and the quality of care in New York hospitals remains poor, with the state ranking 48th nationally. Critics argue Hochul is prioritizing the interests of the health care lobby by approving fee hikes and subsidies rather than focusing on improving outcomes for patients.

  • Hochul has used the word 'unsustainable' to describe her own Medicaid budget for the fourth year in a row.
  • Hochul's latest Medicaid budget proposal would take effect in the next fiscal year.

The players

Kathy Hochul

The Governor of New York who has overseen a 60% increase in Medicaid spending over her four budgets.

Bill Hammond

A senior fellow of health policy at the Empire Center who has criticized Hochul's Medicaid spending increases.

Mark Levine

The New York City Comptroller who pointed out that the health care and social services sector was responsible for most of the city's job growth last year.

Paragon Health Institute

A think tank that flagged New York as an 'extreme outlier' in the employment of home health aides, most of whom are paid through Medicaid.

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What they’re saying

“For the fourth year in a row, Gov. Kathy Hochul has used the word 'unsustainable' to describe her own Medicaid budget.”

— Bill Hammond, Senior Fellow of Health Policy, Empire Center (nypost.com)

“The city would have lost 38,000 jobs last year if not for the 71,000 jobs added by the health-care and social-services sector.”

— Mark Levine, New York City Comptroller (nypost.com)

What’s next

The state's Commission on the Future of Health Care, appointed by Hochul in 2023, is expected to release its first report by the end of 2024 with recommendations on how to guide the state's Medicaid spending.

The takeaway

Hochul's rapid growth in Medicaid spending raises concerns about the program's long-term sustainability and whether taxpayers are getting good value, as the increased funding appears to be more about appeasing the health care industry than improving patient outcomes.