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LeadingAge NY Asks Governor to Retract MLTC Competitive Procurement Proposal

In a letter to Governor Hochul last week, LeadingAge NY sought an amendment to the Executive Budget withdrawing the proposal to competitively procure Medicaid managed care plans, including Managed Long Term Care (MLTC) plans. This proposal threatens to limit consumer choice and disrupt established relationships between consumers and providers and between providers and plans. It would substantially reduce the number of plans eligible to serve older adults and people with disabilities to at least two, but no more than five, per region. Currently, there are approximately 20 MLTC plans (excluding Programs of All-Inclusive Care for the Elderly (PACE)) operating in New York.

The closure of plans that are not selected through the procurement will require the transition of tens of thousands of vulnerable individuals to new plans with networks that might not include the individuals’ existing providers. This disruption of regular sources of care will be distressing and harmful to Medicaid beneficiaries. Massive shifts of patients and residents to new payers will also inevitably disrupt authorizations for services and reimbursement of providers. Further, LeadingAge NY is concerned that the procurement will result in a heavy reliance on large insurers that focus on non-elderly, non-disabled populations. As a result, the specialized expertise and commitment of our MLTC plans sponsored by non-profit long term care providers will be abandoned to the detriment of consumers and providers.

Health care and aging services providers, MLTC plans, and consumers who would like to preserve an array of plan options and oppose the competitive procurement are encouraged to send an email to the Governor via our "call to action" here.

Contact: Karen Lipson, klipson@leadingageny.org, 518-867-8838