While New York’s plan to streamline a Medicaid program currently serves nearly a quarter million residents, legal challenges could potentially halt this transition.
Public Partnerships LLC has been selected to oversee the transition and manage the Consumer Directed Personal Assistance Program (CDPAP), which has taken the first step toward finalizing the transition by New York’s April 1 deadline. The company will take over the fiscal administration of the $9 billion program, cutting out hundreds of smaller companies across the state that currently manage the program.
“We’re on track. I feel confident,” said Maria Perrin, the company’s president. “Our systems are ready to go.”
Why Transition?
Hoping for Public Partnerships to save the state about $500 million in annual Medicaid spending, Governor Kathy Hochul approved the transition in legislation, tucking it into last year’s state budget.
The concern about the current CDPAP management system is that the program’s fiscal intermediaries are believed to be charging the state too much for the services they provide, including payroll for a consumer’s aide and the organization of their care.
The new plan will replace more than 600 fiscal intermediaries participating in CDPAP with just one: Public Partnerships. Public Partnerships won the management contract in September and has already signed agreements with several subcontractors. The state is expected to announce that 11 independent living centers will participate in the program.
“I’m pleased that independent living centers will play an important role as partners in this effort, as we create a better and stronger CDPAP for home care users and caregivers,” Hochul said.
Legal Troubles With the Transition
The state currently faces several lawsuits that seek to either halt the transition or reverse it altogether, many of which are filed by home care companies that want to keep the program in place.
The Hochul administration also faces a lawsuit that alleges the state steered the contract toward Public Partnerships months before the contract was officially awarded, with at least one home care leader claiming they were told in advance that the company would take over the program.
Hochul’s administration denied these claims, stating that public partnerships did not receive preference over others but offered the most competitive bid.
However, the lawsuits that the state faces do have the potential to reverse the transition, but Perrin stated she is not concerned, sharing that “There have been no delays as a result of the lawsuits and from what I’ve read, there has been no judgment to stop this program from transitioning.”
What Is Happening With the CDPAP Now
To ease the transition, phone lines were opened on Mondays to allow people who needed help with daily tasks to hire their aides. While many consumers do not have much required right now, the required steps could jeopardize their care if missed.
The aides in the program also have their requirements if they want to stay employed.
Factors that will change under this new leadership include who consumers work with to handle the financial side of their care.
Previously, they worked with their local fiscal intermediary to manage their finances, including paying their aides. However, Public Partnerships will now handle all of this, with its subcontractors working with consumers and their aides at the local level. Perrin stated that these aides may not be paid the same rate they currently earn.
The company cannot say how much aides will be offered in terms of pay, but Perrin said to expect it to be posted online later this month.
While this transition will make Public Partnerships the primary manager of the program, some things about the CDPAP will not change for consumers. The new leadership will not have a role in approving what is covered for consumers; this depends on what is approved by their health care plan.
