New York’s shift to a single fiscal intermediary for its Medicaid-funded home care program left many personal assistants facing delayed paychecks and missing benefits. A federal judge’s preliminary approval of a $162 million class action settlement now provides a path toward compensation for roughly 200,000 current and former caregivers. The agreement addresses claims that payroll practices fell short of state wage parity requirements during the transition.
Program Transition Created Widespread Disruptions
The Consumer Directed Personal Assistance Program allows Medicaid recipients to choose their own caregivers for in-home support. State officials moved the program to a single contractor, Public Partnerships LLC, to streamline administration. The change triggered extensions, court challenges, and protests from workers and patients alike.
Many aides reported inconsistent payments and incomplete benefit contributions after the switch took effect. These issues prompted the class action, one of the first to test enforcement of the New York Home Care Worker Wage Parity Act. The law requires Medicaid-funded home care employers to pay a base wage plus supplemental benefits.
Settlement Terms and Court Approval
The proposed agreement covers general damages, the value of lost benefits, and accrued time off for eligible workers. Plaintiffs’ attorneys from the Legal Aid Society and Katz Banks Kumin LLP negotiated the deal on behalf of the class. A federal judge granted preliminary approval, clearing the way for final review and distribution.
Hugh Baran, a partner at Katz Banks Kumin LLP, stated that the settlement demonstrates the wage parity law’s ability to deliver real protections. The company confirmed it reached the proposed agreement while denying any liability or wrongdoing. Officials noted the resolution will allow full focus on supporting the hundreds of thousands of New Yorkers who rely on the program.
Separate Federal Action Highlights Additional Allegations
The Department of Justice filed its own lawsuit against Public Partnerships and the New York Department of Health roughly two weeks before the settlement news. That complaint accuses the company of making misrepresentations during the bidding process to secure the sole-intermediary contract. It further claims the arrangement generated tens of millions in extra revenue through added costs per care hour.
The federal suit describes harm to patients, displaced smaller providers, and taxpayers. At the time of the filing, the program served more than 250,000 patients and 300,000 caregivers. The private class action and the government case remain distinct, though both stem from the same program overhaul.
Next Steps for Affected Caregivers
Workers covered by the settlement should monitor notices from the plaintiffs’ firms for claim filing instructions once final approval occurs. Payments will address specific categories of underpayment and lost benefits tied to the parity law. The process aims to resolve claims without requiring individual lawsuits.
- Review eligibility based on work performed under the CDPAP program during the relevant period.
- Watch for official communications from Legal Aid Society or Katz Banks Kumin LLP.
- Understand that the company maintains it did nothing wrong despite agreeing to the payout.
The outcome underscores ongoing questions about how large-scale changes to Medicaid administration affect frontline workers who provide daily care. Many aides continue to support vulnerable New Yorkers while awaiting clarity on their own compensation.
