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CDPAP SFI – LITIGATION ALERT – TRO GRANTED
Federal court grants temporary restraining order (TRO) in connection with the transition to a statewide fiscal intermediary (SFI) in CDPAP.
Yesterday (3/31/25), a federal judge for the Eastern District of New York granted a TRO in Engesser v. DOH Commissioner James McDonald, a case involving the CDPAP SFI transition. A copy of the Order is here.
According to the Order, DOH Commissioner McDonald is temporarily restrained from implementing certain provisions of the SFI Law that restrict the ability of existing fiscal intermediaries to provide FI services as of 4/1/25. The Order does not prevent PPL from working with consumers that registered with PPL, but it does temporarily prevent DOH from disallowing existing FI’s from providing services to consumers that have not yet registered with PPL.
In a call with PPL and Plans earlier today (4/1/25), DOH expressed the view that the TRO is very limited in duration and in scope. DOH indicates that the TRO applies only to consumers that are not yet registered with PPL or have not yet started the registration process with PPL. However, less clear is whether (and how) contracts with existing FI’s are re-instituted if necessary, whether Plans are permitted to change authorizations from PPL to other existing FIs and in what circumstances, and how current FI’s obtain new authorizations (if any).
Looking ahead, the Order indicates that a hearing on a possible preliminary injunction is scheduled for Friday April 4. It is anticipated that additional information and clarity may become available after this hearing.
HCANYS will continue to provide updates on this and other developments with the CDPAP SFI transition.
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