Key facts
- The DOJ accused New York of an unlawful Medicaid home care scheme.
- The lawsuit targets the state's administration of home and community-based services.
- The alleged scheme involves rigging the bidding process for New York's $10 billion Medicaid homecare program.
- Public Partnerships LLC is accused of generating millions in improper profits.
- New York officials claim the lawsuit is a politically motivated attack and that the program changes have saved taxpayers over $1 billion.
The U.S. Department of Justice has sued top New York health officials, alleging a fraudulent scheme to rig the bidding process for managing the state's estimated $10 billion Medicaid homecare program. The lawsuit, filed by the Trump administration, targets Public Partnerships LLC, accused of generating millions of dollars in improper profits after being "pre-selected" to manage the Consumer Directed Personal Assistance Program (CDPAP).
More than 200,000 patients and 260,000 personal assistants participate in the CDPAP. The DOJ stated that New York's failure to police the vendor betrayed public trust and that the state allowed the company to siphon millions of dollars in excess revenue, erasing expected cost savings.
New York's Health Department rejected the lawsuit's accusations, calling the bidding process fair and competitive. A spokesperson for Governor Kathy Hochul described the lawsuit as a politically motivated attack by the Trump administration and stated that the program's consolidation has already saved taxpayers more than $1 billion while deterring fraud and waste.