Advocates in New York are urging Gov. Kathy Hochul to sign a measure meant to codify debt relief protections for people who are involved in Medicaid overpayment investigations and lawsuits.

The proposal, now sitting on Hochul's desk, is meant to bolster protections for Medicaid recipients facing debt due to overpayments from the system meant to provide health care coverage to low-income New Yorkers.

If approved, the new law would include provisions meant to address the effects of the pandemic on Medicaid eligibility while acknowledging the financial problems created by the public health crisis, supporters of the bill said.

“New Yorkers receiving Medicaid are already extremely vulnerable, and it is completely unethical to subject these individuals and families to overly-punitive and unscrupulous Medicaid overpayment investigations and lawsuits that will drive them deeper into poverty,” said Rebecca Antar Novick, the director of the Health Law Unit at The Legal Aid Society​. “Our clients and all New Yorkers should not face dire financial consequences for accessing the public benefits they need and are eligible for, especially while many are still reeling from the financial hardships caused by the pandemic. Gov. Hochul must sign this critical legislation to protect families across the state.”

New York's Medicaid system is one of the largest and costliest in the country. Overpayments are in many instances due to an administrative error. Unlike errors in SNAP or public assistance investigations, a hearing in Medicaid overpayments investigations is not required to be conducted.

Supporters of the proposal say Medicaid recipients can be pressured into signing agreements to settle investigations and money owed due to overpayments, leading to debts owed. In some instances, the investigations can affect immigrant New Yorkers who have limited English proficiency or people who cannot afford to retain an attorney to represent them in the case.