Kathy Hochul must act to prevent costly health-care ‘reform’ plan
Gov. Hochul has criticized a $9 billion home health-care program, labeling it a “racket” that has burdened taxpayers. However, the powerful health-workers union, 1199 SEIU, is now seeking to capitalize on her reform efforts to further drain finances.
Hochul has described the Consumer Directed Personal Assistance Program in the state, which uses funds to compensate family members caring for loved ones at home, as “one of the most abused programs” in New York’s history.
Despite Hochul’s stance, The Post’s Vaughn Golden reports that 1199 is aiming to unionize the family workers providing care, which is expected to add more financial strain to taxpayers.
The relaxed CDPAP eligibility rules established in 2015 caused enrollment to surge from 20,000 to 250,000, with Medicaid spending on the program tripling over five years due to increased vulnerability to abuse.
In 2020, a Brooklyn operation was exposed by the FBI for exploiting care workers’ hours to pocket millions in state and federal Medicaid funds.
Despite this, Hochul’s office has not clarified whether her reforms, such as consolidating the 700 payroll agents of Medicaid and caregivers into one intermediary, will reduce costs.
Indeed, 1199 is pressuring the companies vying to serve as the intermediary to advocate for higher caregiver wages and benefits, and to also support the unionization of these workers.
They are urging the bidders to sign a memorandum of understanding, as shared with The Post, stating that they and 1199 SEIU will work together to secure enough funding to raise caregiver wages and benefits and that the contract will remain neutral regarding whether the caregivers choose to join the union.
The bidders are likely to comply: “The political world does not mess” with 1199 SEIU,” Empire Center health-industry expert Bill Hammond notes. “Any bidder would understand the implications of dealing with 1199 SEIU when presented with this agreement.”
If 200,000 caregivers were unionized, it would be a major victory for 1199, which already has 450,000 members.
Yet this move would counter the program’s purpose, which is to assist family members in caring for their loved ones, not unionized employees.
If funding is increased for “workers” to receive better pay and benefits, taxpayers will not see any savings; instead, costs will likely rise.
The governor may hesitate to challenge the union, and the Legislature is expected to be compliant.
However, if Hochul genuinely aims to end the “racket” she has criticized and control escalating costs, she should immediately put a stop to this blatant power play.
