FTC Says New York’s Medicaid Redesign Program May Promote Anticompetitive Behavior

In an April 22, 2015 letter to the New York State Department of Health (DOH), the Federal Trade Commission (FTC) cautioned that part of the State's Medicaid reform program may sanction anticompetitive behavior. The FTC's concern stems from the Certificate of Public Advantage (COPA) regulations, which offer federal antitrust immunity for certain collaborations among providers participating in the Delivery System Reform Incentive Payments (DSRIP) program. Specifically, the FTC expressed its "strong concern" that COPAs immunize collaborative activities that otherwise may be impermissible under federal antitrust laws, and may "lead to increased health care costs and decreased access to health care services for New York consumers."