A group of New York clergy and faith leaders are voicing concern over proposed changes to the state’s Consumer Directed Personal Assistance Program (CDPAP) — a Medicaid program providing essential home care to about 250,000 state residents who suffer from chronic illness or physical disability.
Last month, Gov. Kathy Hochul announced that New York has tapped Georgia-based Public Partnerships (PPL) to take over the state’s CDPAP.
The change would happen by mid-2025, pending budget approval — and if multiple lawsuits and other efforts to derail the change are unsuccessful.
“We urge the Department of Health and the State Legislature to reconsider these changes to protect and enhance the lives of those we serve,” wrote more than a dozen clergy members in a letter to Acting Health Commissioner James V. McDonald.
In their letter, they express concerns that the transition could disrupt essential services for individuals with disabilities and chronic illnesses. They criticize what they describe as Hochul’s lack of transparency in selecting PPL and the removal of local fiscal intermediaries, which they claim could reduce culturally competent care.
Sam Spokony, spokesperson for Governor Hochul, dismissed claims of a “rigged bidding process.” He noted that changes to the CDPAP program were approved by the State Legislature in April as part of the budget. The Request for Proposals was publicly bid, over 100 proposals were reviewed, and PPL scored the highest based on the established criteria.
Historically, the CDPAP program allows individuals with long-term health needs to receive in-home skilled nursing or daily living assistance from a chosen caregiver, including family members.
Currently, more than 600 fiscal intermediaries, or home care agencies, serve as middlemen for the Medicaid program. These organizations assist in various tasks between Medicaid and service providers, often handling payroll.
The letter highlights concerns about the transition to one fiscal intermediary, noting it could lead to potential job losses for local providers. It also points to what they call PPL’s “troubling” history in other states, which has allegedly resulted in unpaid caregivers and gaps.
PPL, set to relocate its national headquarters to New York, is facing an ongoing lawsuit for allegedly violating federal and Pennsylvania state laws by denying or underpaying overtime wages.
“This is an active lawsuit so we can provide minimal comment,” Lacey Hautzinger, Senior Director Marketing and Communications at PPL, said. “This issue is not about wage theft, but about program process changes, and the lawsuit is not relevant to CDPAP.”
Hochul announced in a newsletter that PPL’s move will create more than 1,200 jobs.
“The supposed 1,200 jobs touted by PPL may be jobs new to that out-of-state contractor, but not a net increase in employment because more than 600 New York companies will be put out of business,” the letter by clergy members wrote.
Hochul also told Bloomberg News that the home health aide program is being exploited, with budget officials linking rising costs to potential fraud and abuse among numerous home care agencies.
This month, for example, eight people have been charged with defrauding New York’s Medicaid home care program by allegedly stealing $68 million through a bribery and kickback scheme.
The federal indictment reveals ongoing issues with the CDPAP, which allows untrained individuals to care for loved ones and is vulnerable to fraud due to limited oversight. The governor’s office has indicated that such fraud is part of why they chose a single vendor, PPL, to handle all paperwork for the program’s consumers and workers.
“We agree it is important to ensure that taxpayer dollars are protected. One of the key reasons we are reforming CDPAP is to remove bad actors that have misused taxpayer dollars,” Spokony said.
In addition to addressing what she calls overspending and exploitation of the program, Hochul also emphasized that the revamped CDPAP will focus on culturally sensitive care.
Under this initiative, CDPAP eligibility for home care users will remain the same, so current recipients won’t need to reapply for it and the state claims that services will continue without disruption.
The governor announced a transition process that will include meetings with CDPAP users, caregivers and disability and aging advocates in the coming months.
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