1199SEIU Home Care Workers & Legislators Urge State to Cut Out For-Profit Insurance Middlemen to Save $3.5 Billion Annually
March 10, 2026
Over a hundred frontline home care workers from around the state joined State Senator Gustavo Rivera and other legislators in Albany earlier today to urge support for the Home Care Savings & Reinvestment Act (S2332A/A2018A) that would save the state approximately $35 billion over ten years by transitioning home care services to a managed fee-for-service model with direct state oversight and improved transparency.
“Privatizing healthcare has not saved our state money or improved care for New Yorkers. In fact, it has had the opposite effect. Managed care companies have only enriched themselves while leaving some of the most vulnerable New Yorkers behind,” said State Senator Gustavo Rivera, Chair of the Heal. “My Home Care Reinvestment and Savings Act would put an end to this failed experiment and in doing so, help our State save billions annually that could be used to directly fund a better system for consumers and home care workers. This is especially timely given the severe cuts coming our way as a result of the HR1 bill. I urge the Executive and Legislature to pass this bill this session so we can ensure State dollars are being invested the health of New Yorkers, not private health insurance companies.”
“This work can be stressful and demanding, but I love taking care of seniors who deserve to be comfortable in their own homes where they have a better quality of life than in nursing homes. Yet many caregivers live in poverty and without access to affordable healthcare. How can we take care of our patients if we cannot take care of our own health?” asked Lilieth Clacken, a home health aide for over 30 years who traveled from Long Island to the state capitol to demand change. “The state needs to get rid of those insurance company middlemen and invest in services that provide people with quality care in their own home—and allow caregivers like me to earn a living wage.”
By cutting out unnecessary insurance pass-throughs, the legislation would free up an estimated $3.5 billion every year to reinvest directly into home care—strengthening the workforce and improving care quality for seniors and people with disabilities.
"I am a proud supporter and co-sponsor of the Homecare Savings and Reinvestment Act. This legislation will ensure that we do two things incredibly well—provide home care workers with a living wage and ensure that our loved ones receive high quality home care as a human right. This bill must be part of the Budget conversation and should be enacted immediately!” said State Senator Cordell Cleare, Chair of the Aging Committee
With federal Medicaid cuts looming and demand for home care rising, New York cannot afford to waste scarce resources. The Home Care Savings & Reinvestment Act would deliver responsible savings while protecting access to essential services. It’s time to put Medicaid dollars where they belong: supporting care. The legislation will generate an estimated $3.5 billion annually for improved care for consumers and fair wages for their dedicated caregivers.
"Home care is changing, and we need to make sure it changes for the better. That is why I'm proud to co-sponsor the Home Care Savings & Reinvestment Act, which if passed could bring about more transparency, and save the state up to $3.5 billion per year. That's more than $3 billion that the state can use for higher caregiver wages; $3 billion more to improve service quality; and $3 billion more to get additional New Yorkers the care they need from home!” said Assembly Member Khaleel Anderson
Read the Home Care Savings & Reinvestment Act Fact Sheet HERE