In Albany, legislators have vehemently opposed Governor Kathy Hochul’s proposals to overhaul a $6 billion Medicaid homecare initiative, titled the Consumer Directed Personal Assistance Program (CDPAP), which has faced criticism for its vulnerability to fraud.
The governor’s proposed measures, aimed at curbing the program’s costs, have been described as severe by critics who argue they would adversely affect the elderly and disabled beneficiaries dependent on the program for homecare.
One program recipient, Geri Mariano, expressed her fears at a Friday press conference organized by the 1199 SEIU healthcare union, saying, “I’m terrified I’ll be forced into deadly and abusive facilities in light of the governor’s proposed draconian budget cuts to homecare, specifically the Consumer Directed Personal Assistant Program.”
Mariano also questioned the governor’s motives, stating, “Honest to God, I don’t know why Governor Hochul hates me and all others wanting to remain in our homes with these programs.”
The program is distinctive for allowing individuals to employ friends, family, or acquaintances as caregivers, compensating them with over $43,000 annually, with these wages funded through Medicaid.
However, the program’s lack of stringent oversight has led to widespread abuse, as highlighted by a 2020 FBI investigation into a Brooklyn-based agency that defrauded millions from the program.
Governor Hochul’s budget proposal includes reforms such as capping caregiver work hours and granting the state Department of Health greater regulatory power over the program’s financial intermediaries. These changes are projected to save New York $200 million annually.
Hochul aims to remove the $1.55-per-hour increase to the minimum wage for CDPAP aides in New York City, Westchester, Nassau, and Suffolk counties.
When asked for a comment, the governor’s office said, “The cost of this program has spiked by a massive 1,200% in just eight years, threatening our ability to pay for other critical health care services and balance our budget.”
The statement added, “We need common-sense reforms to protect New Yorkers who rely on home health care and to safeguard taxpayer dollars.”
However, some legislators raised doubts regarding the governor’s claims regarding fraud within the program.
State Senator Shelley Mayer expressed skepticism regarding the alleged widespread fraud within the program, emphasizing the lack of evidence and stating, “To the extent that there are specific, identifiable, evidence-produced examples that need fixing in the policy, of course, the door is open.”
According to Department of Health data, the number of beneficiaries in CDPAP has increased by over 78% since 2015.
The 1199 SEIU union and its allies have launched advertising campaigns to oppose the governor’s reforms, highlighting the issue’s significance within the state’s political landscape.