New York Governor Proposes Competitive Bidding For Medicaid Plans

On January 18, 2022, New York Governor Kathy Hochul released a budget proposal that includes a plan to competitively procure Medicaid managed care organizations (MCOs). Currently, the state Department of Health (DOH) uses an application and readiness determination process to contract with MCOs. The budget assumes that this change would result in $100 million in savings.

Under the budget proposal, the DOH would handle the procurements. The proposal pertains to mainstream Medicaid plans, health and recovery plans, and managed long-term care plans. The state would still be ale to contract directly with HIV Special Needs Plans and Programs of . . .