NY health plans question if state's new Medicaid policy is legal

The New York Health Plan Association, which includes managed health plans in New York State, questioned the legality of Democratic Gov. Andrew Cuomo's "emergency" regulations to stabilize the state's individual exchange, including banning health insurers who exit the exchange from participating in the state's Medicaid program.

Mr. Cuomo said June 5 insurers exiting the New York State of Health marketplace would be prohibited from participating in Medicaid, Child Health Plus and the Essential Plan programs. The new regulations will be implemented through the New York State Department of Financial Services.

Paul Macielak, president and CEO of NYHPA, said June 5, "There are issues about the legality and timing of the directive to ban plans that don't participate on the exchange from the Medicaid, Child Health Plus and Essential Plan markets, and the impact it might have on the overall marketplace in New York."

Mr. Macielak added, "In many ways, the governor's press release has the potential to create more uncertainty for plans than the uncertainty of the proposals being discussed in Washington." 

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