New York Changing Medicaid Program Sparks Democratic Pushback

Democrats are pushing back against a change to New York’s Medicaid program that could impact 250,000 state residents.
Medicaid supports some of America’s most vulnerable residents, supplying low-income residents with health insurance.
New York said it would start contracting with a single company for its $9 million Consumer Directed Personal Assistance Program (CDPAP) by October 1. The program aids 250,000 people, mostly the disabled and elderly, receive care from a friend or family member while living on their own. But some lawmakers are questioning the change’s impact.
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“We’re really very concerned about the changes that would occur,” said state Senator John Mannion, chair of the Senate Disabilities Committee, according to Spectrum News.
Mannion was joined by several other lawmakers who signed a letter asking for the Centers for Medicare & Medicaid Services (CMS) to stop the state from its contract by the October 1 deadline.
“Is this going to work for individuals? Is it going to save the dollars that have been projected?” Mannion said. “…We’re reaching out to the federal government to say ‘We really need an analysis of this.'”
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CMS received the letter and said it would respond to appropriate officials.
“The Medicaid program is jointly administered by the state and federal governments where states operate within broad federal parameters,” a spokesperson for CMS told Newsweek. “CMS reviews formal requests from states on a case-by-case basis and does not speculate on any potential decisions.”
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If the contract goes through, the program will implement the changes on April 1, 2025.
While many of the state officials who asked for CMS assistance voted for the state budget approving the Medicaid changes, Mannion said many of them voted because they liked the spending plan overall, not the Medicaid change itself.
“We did not have the time to dedicate to this issue in a manner it really deserved,” Mannion said.
Under New York’s current Medicaid, nearly 700 entities manage the program, but the state is looking to have only one financial contractor by October.
Other states like Massachusetts have made similar switches, but they typically take place over the span of several months. Massachusetts took eight months to make the change, and New York is planning to switch during a six-month period, despite serving roughly five times more people.
“The state is hoping to transition to just one entity to manage that program moving forward, and obviously such a major move is triggering some alarms among legislators at state and federal levels,” Alex Beene, a financial literacy instructor for the University of Tennessee at Martin, told Newsweek.
“The state is claiming the move to one entity will help cut unnecessary costs out of the process and leave more money for direct care, but at the same point, a monumental shift like this raises fears that the transition won’t be smooth, and it could result in a disruption of care from recipients.”
Newsweek reached out to New York Governor Kathy Hochul for comment via email.
“CDPAP is an important program that empowers New Yorkers to choose their own care at home,” a spokesperson for Hochul previously told Spectrum. “We’re committed to protecting home care patients, strengthening CDPAP and ensuring the program is sustainable. Our reforms will advance that goal by making sure taxpayer dollars are effectively serving the patients who need them.”
Hochul has expressed concerns about the program being manipulated across the state, saying it was a “racket” and “one of the most abused programs in the State of New York.”
The many financial intermediaries made the program difficult to oversee, Hochul told local publication THE CITY afterward.
“The racket part, as I described, was really this middleman,” she said. “What I simply looked at was the middleman, middlewoman, people in between who are absorbing dollars that I want to see go directly to these families that need our care. This is never about them getting less.
“This is exactly why we’re reforming the program—to protect CDPAP users and caregivers, cut out hundreds of middlemen, and ensure taxpayer dollars are effectively serving the New Yorkers who receive care at home.”