US sues New York health officials over alleged fraud in Medicaid homecare program
Source: Reuters
June 16, 2026 6:15 PM EDT Updated 9 hours ago
NEW YORK, June 16 (Reuters) - The Trump administration sued top New York health officials on Tuesday over an alleged scheme to rig the bidding process for managing the state's estimated $10 billion Medicaid homecare program, harming patients and caregivers as well as taxpayers.
The U.S. Department of Justice said the lawsuit aims to stop an alleged fraudulent scheme in which Public Partnerships LLC generated millions of dollars of improper profits after being "pre-selected" to take over New York's Consumer Directed Personal Assistance Program, or CDPAP. More than 200,000 patients and more than 260,000 personal assistants participate in the program, state health commissioner James McDonald said in February.
“New York’s failure to police a favored vendor that unlawfully siphoned millions of dollars of Medicaid funding is egregious and betrays the public trust," Brett Shumate, an assistant attorney general in the Justice Department's civil division, said in a statement.
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The defendants include PPL, McDonald and state Medicaid Director Amir Bassiri. The lawsuit seeks to stop PPL's alleged "siphoning of funds from the federal coffers," appoint a receiver for the company and halt further alleged fraud. A spokesperson for New York's Democratic Governor Kathy Hochul said: "This is just another sad attempt by the Trump administration to weaponize the justice system to attack political opponents in an election year. New York’s decision to move to a single fiscal intermediary has already saved taxpayers more than $1 billion while deterring fraud, waste and abuse."
Read more: https://www.reuters.com/legal/litigation/us-sues-new-york-health-officials-over-alleged-fraud-medicaid-homecare-program-2026-06-16/
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