New York’s $1.1 Billion Medicaid Upgrade Stalls Renewals for 147,000 Enrollees
Updated
Updated · POLITICO · Oct 1
New York’s $1.1 Billion Medicaid Upgrade Stalls Renewals for 147,000 Enrollees
1 articles · Updated · POLITICO · Oct 1
Summary
Only about one-third of more than 147,000 Medicaid and Medicare Savings Program enrollees moved into New York’s new system have renewed automatically since the transition began about a year ago.
The $1.1 billion overhaul is meant to replace paper-based local processing with a centralized, real-time eligibility platform run through New York State of Health, but officials acknowledge unresolved problems remain.
Advocates say those problems have triggered inappropriate denials, bad data transfers, a flawed asset-verification tool and no manual override for some erroneous decisions, putting coverage at risk for older, blind and disabled people.
Deloitte built the system under a contract that grew from $177 million in 2023 to $1.18 billion after four amendments, including an $866 million extension to finish migration and meet federal requirements.
New York started the rollout in September 2025 and plans a second wave for more complex cases between November 2027 and February 2028, even as critics warn the current system’s kinks are not yet fixed.
How did a $177 million Medicaid tech upgrade balloon to $1.1 billion while leaving thousands of vulnerable New Yorkers facing wrongful coverage denials?
With complex nursing home cases migrating next year, could an automated system glitch cost elderly patients their life savings or homes?
Are automated government platforms genuinely designed to streamline healthcare access, or do they inadvertently act as digital barriers?