DOJ Sues New York Officials Over Alleged $11B Medicaid Homecare Procurement Irregularities
The U.S. Department of Justice has filed a lawsuit against officials in Governor Kathy Hochul’s administration, alleging irregularities and bid manipulation tied to a multibillion-dollar Medicaid homecare program overhaul valued at approximately $11 billion.
Federal prosecutors claim the state’s restructuring process improperly favored a selected vendor, Public Partnerships LLC (PPL), in managing payroll services for nearly 250,000 homecare recipients. According to the complaint, this arrangement allegedly resulted in millions of dollars in federal Medicaid funds being improperly directed.
The lawsuit names State Health Commissioner James McDonald and Medicaid Director Amir Bassiri, asserting they played roles in advancing the contested transition despite internal warnings about operational risks and potential disruptions.
Assistant Attorney General Brett A. Shumate of the DOJ Civil Division stated that the case centers on ensuring compliance with federal healthcare funding rules and preventing further misuse of taxpayer-supported Medicaid funds.
“The Justice Department is acting to ensure that federal laws regarding truthful statements and fair dealing in federal health care programs are upheld,” Shumate said, adding that the government seeks to prevent additional harm linked to the program’s administration.
New York officials have not yet issued a detailed public response to the specific allegations in the filing.
Benjamin Harris is a RapidReports front page contributor and editor,proud father of four.
