Second Circuit Rejects Challenge to NY Home Care Contracts (1)

The Second Circuit on Tuesday said New York State “had a rational basis” for switching to a single, statewide provider for home care services and affirmed dismissal of a case challenging the decision.

The court’s unsigned opinion rejected arguments from four fiscal intermediaries that handle administrative, financial, and compliance responsibilities for the state Medicaid’s home care services program. They claimed the state violated the constitution when it eviscerated their private property—their contracts with the Department of Health—and refused to compensate them for the loss.

The state’s decision “neither effected a taking of private property nor disrupted Plaintiffs’ reasonable expectations under ...