New York administration expands Deloitte Medicaid contract to $1.1 billion

The administration of New York Governor Kathy Hochul has faced scrutiny for expanding a contract with Deloitte Consulting to $1.1 billion without a competitive bidding process. The New York Department of Health originally awarded the firm a $177 million contract in 2023 to centralize the Medicaid application process into a single statewide portal.

In August, the administration amended the deal by an additional $866 million. Watchdog groups and policy experts argue that an expansion of this magnitude should have triggered a new public bidding process to ensure taxpayers receive the best value. While the state is permitted to amend existing contracts under specific exemptions, critics note that this amendment is more than four times the original price.

Records from the comptroller’s office indicate that monthly payments to Deloitte will rise from approximately $9 million during the first three years to roughly $25 million per month following the amendment. A spokesperson for the Department of Health stated that the deal followed legal requirements.