A group of home care agencies filed a lawsuit in federal court against New York State’s Department of Health, challenging Governor Kathy Hochul’s plan to overhaul the Consumer Directed Personal Assistance Program (CDPAP) on Thursday, September 19th. This program, a Medicaid initiative, allows individuals with long-term care needs to hire and manage their home care workers. The lawsuit claims that Hochul’s proposed changes, which would reduce the number of fiscal intermediaries administering the program to just one statewide firm, will severely impact the home care industry, eliminate hundreds of businesses, and reduce the quality of care.
The plaintiffs, four home care agencies based in New York City and its suburbs, argue that the state’s decision to select a single intermediary would create a government-supported monopoly, harming competition and reducing service quality. They contend that this violates their constitutional rights under the federal Contracts Clause and will disrupt longstanding business agreements with health organizations tied to Medicaid.
Governor Hochul, who has been vocal about reducing fraud and ballooning costs within CDPAP, defended the changes as necessary. “We’re committed to protecting home care patients, strengthening CDPAP, and ensuring the program is sustainable,” her office stated. The program has grown significantly in cost, now spending $9 billion annually, a sharp rise from just $13,000 in 2015.
Critics of the plan argue that Hochul’s proposal will hurt those who rely on home care services, potentially forcing patients into institutionalized care. The lawsuit follows other legal challenges filed by home care industry groups, highlighting mounting opposition to the state’s effort to centralize the administration of CDPAP.
Despite criticism, Hochul remains committed to reforms aimed at making Medicaid spending more efficient. The legal battle is expected to intensify as the deadline for selecting a single fiscal intermediary approaches in October.
