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How Kathy Hochul’s admin handed firm a $1B Medicaid contract without competitive bidding

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Cite

Golden, V. (2026, September 27). How Kathy Hochul’s admin handed firm a $1B Medicaid contract without competitive bidding. New York Post. https://nypost.com/2026/09/27/us-news/how-kathy-hochuls-admin-handed-firm-a-1b-medicaid-contract-without-competitive-bidding/

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New York Post · collected 2026-09-27 · by Vaughn Golden

Quick Summary

The Hochul administration amended a contract with consulting firm Deloitte, increasing it from $177 million to $1.1 billion without competitive bidding, raising concerns about transparency and taxpayer value. The initial contract aimed to centralize Medicaid application processing in New York State, but watchdogs argue that the significant increase should have triggered a public bidding process. Critics like Manhattan Institute’s Bill Hammond and Reinvent Albany’s Rachael Fauss suggest the amendment deserves scrutiny to ensure taxpayers are receiving optimal service for their investment.
Written by AI on 2026-09-27, from this article's own text only (the story summary below draws on all the coverage).

AI analysis

Story summary

In 2023, Gov. Kathy Hochul’s Department of Health in New York awarded Deloitte Consulting a contract worth $177 million to centralize parts of the Medicaid application process previously managed by counties into one statewide portal. However, this initial agreement was amended in August with an additional $866 million, bringing the total value of the contract to $1 billion. Critics argue that such a significant increase should have triggered a competitive bidding process according to state regulations, which mandate public bidding for new contracts and specific exemptions only for emergency situations or minor amendments to existing contracts. The amendment’s size—more than four times the original price—raises concerns about whether taxpayers are receiving the best value for their money.

Written for “New York Medicaid Contract Controversy” on 2026-10-30, grounded in this article and the 0 other(s) covering the same event.

Story

📰 New York Medicaid Contract Controversy
Politics · 1 article(s) covering the same event.

Compared with similar articles

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How this article was measured signals, leaning charts, publisher record, byline, topics and claims

Signals How these are calculated →

Claims extracted
17
sentences that state something as happening or true
Uncertain
0%
0 of 17 hedged ("reportedly", "may", "according to")
Leaning
Leans left
of the writing, not the subject · beta estimate
Publisher signals
66/100
New York Post's corrections and hedging, across everything collected from it. Not a measure of accuracy.
Outlets on this story
1
Politics
Same framing elsewhere
1
articles that frame the event the way this one does
Analyzed 2026-09-27 · how these are computed

How this is being covered How these are calculated →

Article leaning vs. publisher reliability
Source leaning vs. consistency

Publisher

New York Post · 15307 article(s) · 35 correction(s) detected
Running correction rate · 35 correction(s)

Who wrote this

Vaughn Golden
39 article(s) here · 1 carrying a prediction
🔮 AI chatbots will be banned from feigning human emotions in conversations with kids, under a new law signed by New York Gov. Kathy Hochul Wednesday.
🔮 Republican gubernatorial candidate Bruce Blakeman warned New York voters that congestion pricing could come to a “community near you” if Gov. Kathy Hochul wins reelection Blakeman, the Nassau County executive, vowed to kill the program outright if he beats the Democratic incumbent in the Nov. 3 election as he claimed Hochul could have a menu of new taxes she could unleash if she secures another term. “Doesn’t matter whether it’s New York City, Buffalo, Rochester, Syracuse, Albany, Binghamton or any town in between,” Blakeman claimed while speaking on Fifth Avenue in Manhattan Tuesday.
🔮 Hotel bills were for her entire team, and may have included multiple stays for multiple nights.
🔮 Big Apple Mayor Zohran Mamdani will finally hit the campaign trail with Gov. Kathy Hochul — with less than two weeks before Election Day, the incumbent Democrat announced Thursday.
🔮 Kassay, who is seeking a second two-year term to the Assembly’s third district in Suffolk, is facing Republican Will Sussman in the Nov. 3 election.
🔮 New York state’s rosy mid-2026 economic picture could come crashing down if a potential AI-fueled market bubble bursts, Gov. Kathy Hochul’s Budget Director Blake Washington warned recently.
🔮 “People will say elections are term limits.
🔮 Rep. Tom Suozzi will snub a Long Island campaign event with Gov. Kathy Hochul on Saturday because of a scheduling clash — as other down-ballot New York Democrats distance themselves from the unpopular Empire State leader.
🔮 Blakeman, the Nassau County executive, also hammered Hochul for her infamous 2024 claim that “young black kids in the Bronx” don’t know what a computer is — insisting youngsters in the borough “know more about a computer” than the governor will “ever know.”
🔮 Democrat Cait Conley finally condemned Mayor Zohran Mamdani’s anti-Israel rhetoric — but only after Rep. Mike Lawler backed her into a corner for repeatedly dodging the question.
Also by Vaughn Golden
Nothing else under this byline is closely related to this article, so these are simply their most recent.
All 39 articles by Vaughn Golden →

Topics

ALBANY DOH Deloitte Department of Health Post

Subjects

Deloitte ORG · 6× DOH ORG · 2× Hochul PERSON · 2× ALBANY GPE · 1× Deloitte Consulting ORG · 1× Department of Health ORG · 1× Kathy Hochul PERSON · 1× Manhattan Institute Health Policy ORG · 1× Medicaid ORG · 1× Post ORG · 1×

Narrative

Gov. Kathy Hochul’s Department of Health had initially handed Deloitte Consulting a $177 million contract in 2023 to centralize a part of the Medicaid application process that was still being handled by counties into one statewide portal.
framing: assertive · carried by 1 article(s) · first seen 2026-09-27
🔮 That means the state paid Deloitte roughly $9 million per month for the first three years of the contract compared with $25 million a month it will spend now after the $866 million amendment signed in August.

Claims (17 extracted, 0 hedged)

– The Hochul administration skirted competitive bidding by quietly amending a contract with a high-powered consulting firm to boost their deal to an eye-watering $1.1 billion, The Post has learned. asserted
Post → skirt → billion
Gov. Kathy Hochul’s Department of Health had initially handed Deloitte Consulting a $177 million contract in 2023 to centralize a part of the Medicaid application process that was still being handled by counties into one statewide portal. asserted
that → hand → portal
But the contract ballooned well beyond that as the administration amended the deal by $866 million in August — a move watchdogs say should have triggered a public bidding process. asserted
watchdogs → balloon → process
“For a contract expansion of this size it seems like they should be rebidding it,” Manhattan Institute Health Policy expert Bill Hammond told The Post. asserted
Hammond → seem → Post
Governments are required to follow competitive bidding procedures and choose the lowest responsible company, with specific exemptions for emergency deals and amendments to existing contracts. asserted
Governments → require → contracts
“This certainly deserves scrutiny to ensure taxpayers are getting the best deal for the services being provided.” asserted
taxpayers → deserve → services
Deloitte’s original $177 million contract for the “Medicaid Eligibility and Client Management (MECM) system” was amended several times before, growing to $317 million before the big August increase. asserted
contract → amend → increase
Just over $200 million was actually spent, per comptroller’s office records. asserted
million → spend → records
That means the state paid Deloitte roughly $9 million per month for the first three years of the contract compared with $25 million a month it will spend now after the $866 million amendment signed in August. asserted
it → mean → August
State DOH spokesperson Cadence Aquaviva said that the Hochul administration deal with Deloitte followed the law and was necessary for “sunsetting an outdated, error-prone system.” asserted
deal → say → system
“Once it is complete, this platform will save state taxpayers hundreds of millions of dollars while allowing us to strengthen the program and reduce the potential for waste, fraud and abuse,” the DOH spokesperson said. asserted
spokesperson → save → waste
The federal government — under the Centers for Medicaid and Medicare Services — is paying for 90% of design and implementation costs of Deloitte’s new portal and 75% of the operations, the spokesperson said. asserted
spokesperson → pay → operations
Deloitte did not return a request for comment. asserted
Deloitte → return → comment
The firm has been involved in building pricey IT systems for the state before, such as the COVID-era vaccination “Excelsior Pass.” asserted
firm → involve → Pass
The program provided Empire State residents with a digital health record for vaccines and testing that was sparsely used despite costing taxpayers over $60 million. asserted
that → provide → million
Former State Budget Director Sandra Beattie recently admitted to violating ethics laws for schmoozing with Deloitte’s lobbyist while the firm was raking in massive contracts. asserted
firm → admit → contracts
A spokesperson for the governor’s office did not return a request for comment. asserted
spokesperson → return → comment
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