Justice Department Sues NY Governor Hochul's Administration Over Alleged Bid Rigging in $11 Billion Medicaid Homecare Program
The US Department of Justice has filed a lawsuit against Gov. Kathy Hochul’s administration, alleging bid rigging in an $11 billion Medicaid homecare program. The lawsuit names State Health Commissioner James McDonald and Medicaid Director Amir Bassiri, accusing them of favoring Public Partnerships LLC and allowing the company to misuse taxpayer funds. The Department of Justice is taking action to uphold federal laws and prevent further harm to the public.
While Gov. Hochul is not directly implicated in the lawsuit, emails between her office, the health department, and PPL suggest her involvement in the transition process and bid awarding. Despite warning signs, the administration proceeded with the transition, leading to chaos in payroll services for homecare recipients. Hochul's office rejected requests to extend the transition timeline, causing difficulties for thousands of disabled New Yorkers and their caregivers.
The lawsuit reveals that only a small fraction of the homecare recipients had completed the transition to PPL's system within the specified timeframe, despite claims of efficiency by State Health Commissioner McDonald. The Justice Department emphasizes the need to protect taxpayer-funded programs from fraud and corruption, highlighting the consequences of the alleged backroom deal with PPL. Today's action underscores the commitment to safeguarding public resources and holding accountable those involved in fraudulent activities.