Bond Sues NYDOH Over Change in CDPAP Program

August 21, 2024

Bond, Schoeneck & King attorneys have filed a legal challenge to a request for proposals (RFP) issued by the New York State Department of Health that incredibly favors out-of-state companies over New York State businesses. 

The five-year, $40 billion contract that will result from the RFP would replace a network of hundreds of fiscal intermediary service providers in the Consumer Directed Personal Services Program (CDPAP) with one single, statewide fiscal intermediary that would oversee $8 billion of Medicaid spending. CDPAP is an innovative program of self-directed home care that allows seniors and individuals with disabilities to hire their own personal assistants and direct their own care. The program currently supports over 250,000 seniors and individuals with disabilities, and the fiscal intermediaries collectively employ nearly 20,000 New Yorkers. The intermediaries provide administrative supports such as Medicaid billing and payroll services.

Bond is representing nine New York-based fiscal intermediaries that are fully capable of bidding for and delivering fiscal intermediary services statewide. The Department of Health’s RFP, however, requires out-of-state experience but disregards New York State experience. That, the legal challenge argues, is unconstitutional, arbitrary, capricious and an abuse of discretion. Bond attorneys Hermes Fernandez, Roger Bearden, Nicole Macris and Jackson Somes are on the suit, filed August 19 in state Supreme Court in Albany.