Gov. Hochul quietly rammed through a measure during state budget negotiations earlier this year to replace the hundreds of financial intermediaries that pay caregivers in the popular Consumer Direc…
Gov. Hochul’s plan to overhaul the fraud-ridden $9 billion Medicaid home care program — which allows New Yorkers to get paid to take care of elderly adults — is facing a legal challenge from the “middlemen” companies who work as a payroll agent between Medicaid and the caregivers.
New York’s CDPAP program cost taxpayers upwards of $9 billion in 2023, according to recent Department of Health figures.“It will have the effect of putting hundreds of New York state companies out of business, costing thousands of jobs, and significantly disrupting services and/or fully depriving Consumers of services within their homes, forcing them to be institutionalized,” it continues.
However, the lawsuit argues the changes specifically target the fiscal intermediaries and violate their ability to do business under the state constitution, US constitution and federal Medicaid laws. Naysayers also have complained that any prospective firm has to meet extremely limiting criteria, such as having experience being a statewide fiscal intermediary in another state.
Bryan O’Malley, Executive Director of the Consumer Directed Personal Assistance Association of New York State, was not involved in the lawsuit, but his group has also ripped Hochul’s proposal.
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