New York State Department of Health Issues Cease and Desist Letter to Certain Fiscal Intermediaries and Licensed Home Care Service Agencies for Misleading CDPAP Consumers and Personal Assistants

Department Alerts Elected Officials to Reports of Predatory Practices by Some Fiscal Intermediaries and Licensed Home Care Service Agencies

Actions Highlight Further Evidence of Misinformation Campaign by Groups That Have Benefitted from Waste and Abuse of the CDPAP Program

ALBANY, N.Y. (March 11, 2025) – The New York State Department of Health has issued Cease and Desist letters to certain Fiscal Intermediaries and Licensed Home Care Service Agencies (LHCSAs), following complaints that these organizations provided false, deceptive or coercive information to Consumer Directed Personal Assistance Program (CDPAP) consumers, Personal Assistants (PAs) and/or their designated representatives. This misinformation is an attempt to undermine the State's legislatively mandated transition to a single Fiscal Intermediary under Public Partnerships LLC.

"We want to ensure consumers are receiving accurate information so they can make informed decisions about their health care and choose the services that are right for them," State Health Commissioner Dr. James McDonald said. "The deceptive actions of these groups and organizations who have traditionally benefitted from waste and abuse of the CDPAP program are not only illegal, but immoral. We will continue to combat this type of misinformation and give peace of mind to those who rely on the program."

These actions are in violation of the rules and regulations related to the operation of a fiscal intermediary (FI) service for CDPAP authorized under 18 NYCRR, Part 505, or a Licensed Home Care Services Agency (LHCSA), licensed under Public Health Law Article 36.

LHCSAs and FIs have been directed to immediately cease and desist from making the following statements or taking the following actions:

  • Providing false information to consumers about the requirements of the Statewide Fiscal Intermediary transition.
  • Charging a fee to potential personal care workers for the minimum 40-hour training and assessment to become a personal care assistant.
  • Falsely telling PAs that they can provide personal care services (PCS) to their family member currently participating in CDPAP, in violation of 18 NYCRR 505.14.
  • Falsely telling PAs that they can provide PCS without meeting PCS requirements, including training and other assessments, registrations, and background checks.
  • Falsely telling consumers that as of April 1, 2025, they no longer qualify for CDPAP services, or that their PA will no longer qualify to provide PA services.
  • Falsely telling PAs or consumers that a personal care worker in a LHCSA can provide the same services as a PA under the CDPAP in violation of scope of practice regulations.

Agencies are being directed to inform affected CDPAP PAs, consumers and designated representatives of any false or inaccurate information that has been provided, to provide correct information and to direct consumers to contact the consumer's Managed Care Organization, their Local Department of Social Services or Public Partnerships LLC.

LHCSA and FI operators are reminded that the Department will use its regulatory authority to enforce statutes and regulations governing LHCSAs and CDPAP, and such enforcement action may include a recommendation for licensure revocation as authorized under NYS Public Health Law 3605-a, as well as referral to the appropriate authorities for investigation of possible Medicaid fraud subject to recoupment and/or consumer fraud.

This is just the latest action take by the State Department of Health to combat misinformation and deceptive practices seeking to undermine these commonsense CDPAP reforms. In February, it was revealed that The Alliance to Protect Home Care, which has consistently spread misinformation about the CDPAP transition, has been funding its attack ads with $10 million from a dark money group known as "United CDPAP."

The Department will continue to combat misinformation and dispel myths about the reforms that will create a stronger CDPAP for New Yorkers who rely on home care services.