New York Medicaid Upgrade Stumbles as Thousands Face Coverage Gaps

New York's Department of Health started transitioning more than 147,000 Medicaid and Medicare Savings Program recipients to a new case-management platform in September 2025, aiming for real-time eligibility decisions. To date, only about a third have successfully renewed their coverage without help, while advocates cite a surge in wrongful denials, faulty data migration, and an automated asset-verification system that staff cannot override.

The $1.1 billion contract with Deloitte, originally $177 million, has expanded to $1.18 billion after multiple amendments, including an $866 million extension. A second wave of more complex cases, such as long-term care patients, is planned for late 2027 to early 2028. State officials concede the system still has kinks but stress that testing continues and federal review has been completed. Critics warn that unresolved problems could jeopardize coverage for seniors, the blind and disabled.