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New York Medicaid Homecare Overhaul Faces Scrutiny Amid Payment Disruptions
ALBANY — Governor Kathy Hochul’s endeavor to revamp a significant New York Medicaid program is encountering challenges, leaving homecare workers unpaid and vulnerable individuals at risk. The situation has prompted federal court intervention aimed at easing the ongoing difficulties.
Court Intervention Seeks to Alleviate Payment Crisis
A last-minute legal action by non-profit Independent Living Centers resulted in a state agreement to extend deadlines for aides and consumers within the Consumer Directed Personal Assistance Program (CDPAP). This extension provides additional time to navigate the complex registration process with the state’s newly appointed payment processing company.
Concerns Rise Over Impact on Homecare Recipients
Brooke Erickson, Vice President for Programs at Regional Center for Independent Living (RCIL), a plaintiff in the legal action, stated, “The state must act immediately. Currently, individuals are largely negotiating with their workers to maintain assistance during this crisis, preventing a surge in emergency room visits.”
Reports of Widespread Payroll Errors for Homecare Aides
Mounting evidence suggests substantial payroll discrepancies affecting homecare aides.
Tara Murphy, a homecare aide, informed reporters on Friday about registration problems with Public Partnerships LLC (PPL), the recently selected firm now managing aide payments. Murphy reported receiving a pay stub for $0 for completed training hours.

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“I did not receive payment from PPL this week, and I am uncertain if I will be paid by PPL,” Murphy stated, highlighting the payment uncertainties.
Recipients and Aides Face Financial Strain
Another individual, a 30-year recipient of the program, informed The Post that two of his three aides did not receive correct payment for their worked hours last week.
This recipient had to personally advance $200 to one aide, but critics are concerned that thousands of the program’s nearly 280,000 participants may be left without essential care as both they and their aides face increasingly precarious financial situations.
PPL Acknowledges Payment Discrepancies, Cites Timecard Issues
A PPL spokesperson stated to The Post that approximately 100,000 aides out of the 160,000 who have transitioned to PPL and submitted “compliant timecards” were paid last week, based on Department of Health figures.
The company indicated that aides who submitted timecards past a strict midnight deadline or those with incomplete paperwork were not paid. Regarding Murphy’s $0 pay stub, PPL attributed it to a possible error related to tax withholdings.
“We have found no systemic errors in the payroll process,” the PPL spokesperson asserted.
Federal Inquiry Underway into Program Transition
The ongoing situation has garnered attention from federal prosecutors within the consumer protection division of the U.S. Department of Justice. They communicated to the court their active monitoring of the unfolding events.
State Defends Reforms Amidst Payment Concerns
Sam Spokony, a spokesperson for Governor Hochul, issued a statement defending the program changes: “Our necessary reforms are ending years of excessive bureaucratic spending. This transition ensures that workers who correctly submit timecards will receive payment.”
Health Commissioner Jim McDonald asserted, “We have made significant progress with hundreds of thousands of consumers accessing essential services and personal assistants registered, logging hours with PPL, and receiving their initial payments.”