New York expands Deloitte Medicaid contract to $1.1 billion without a rebid
The Hochul administration increased Deloitte Consulting’s Medicaid portal contract from $177 million to $1.1 billion by amendment, bypassing a competitive bidding process.
In 2023, New York’s Department of Health granted Deloitte Consulting a $177 million contract to centralize Medicaid applications into a single online portal. The agreement was later expanded to $317 million and, in August, received an $866 million amendment, bringing the total value to $1.1 billion—an increase more than fourfold the original amount. State officials maintain the change follows legal requirements and will modernize a flawed system, citing federal funding that covers most design and operational costs.
Critics, including policy experts from the Manhattan Institute and Reinvent Albany, argue that such a large amendment normally mandates a competitive rebid to ensure taxpayer value. Deloitte, which previously delivered the costly Excelsior Pass, declined to comment, and a former state budget director admitted ethics violations involving the firm’s lobbyist.
Why it matters
The deal raises concerns about transparency and fiscal responsibility in a massive state Medicaid IT project.
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