Rigged Bid? $10B Medicaid Shock Wave

Interior view of an empty courtroom with wooden furniture and American flags

The Trump Justice Department is accusing New York’s Hochul-run health bureaucracy of using a sham bidding process to hand a $10 billion Medicaid homecare empire to a pre‑selected company that then siphoned off taxpayer money.

Story Snapshot

The U.S. Department of Justice says New York rigged the bid for a $10 billion Medicaid homecare contract and “pre‑selected” Public Partnerships LLC.
Federal lawyers allege a sham bid process, false statements, and millions in unauthorized profits while vulnerable patients and caregivers were harmed.
Hochul’s administration and Public Partnerships LLC deny wrongdoing and call the lawsuit baseless and political.
The case highlights long‑running Medicaid abuse in New York and the high cost of opaque, union‑friendly blue‑state health schemes.

What The DOJ Says New York Did With A $10 Billion Medicaid Program

The U.S. Department of Justice has filed a civil lawsuit in federal court against the New York State Department of Health, Medicaid Director Amir Bassiri, and Public Partnerships LLC, a Georgia‑based firm that runs New York’s Consumer Directed Personal Assistance Program, or CDPAP.^[14] Federal prosecutors say the state used a sham bidding process in 2024 to award Public Partnerships LLC a huge management contract for the $10 billion Medicaid homecare program.^[13] They allege the scheme let the company generate millions in unauthorized, taxpayer‑funded profits.^[14]

The lawsuit claims New York pretended to run a fair competition but had already “pre‑selected” Public Partnerships LLC before bids were even scored.^[13] According to the Justice Department, Bassiri helped disqualify other qualified bidders after personally scoring Public Partnerships LLC’s proposal, clearing the path for the company to win a roughly $1 billion management deal.^[13] Once in place, the company allegedly billed at higher‑than‑promised rates, erasing the cost savings that were supposed to come from consolidating hundreds of smaller intermediaries into one statewide contractor.^[13]

How Patients, Caregivers, And Taxpayers Were Allegedly Harmed

CDPAP is meant to let people with serious disabilities hire and direct their own home caregivers, with Medicaid footing the bill.^[14] The Justice Department says the rigged contract and sloppy rollout did the opposite of “consumer‑directed” care, driving chaos for thousands of vulnerable patients and family caregivers.^[15] Prosecutors say New York and Public Partnerships LLC misled the public about when the transition would be complete, hiding the fact they could not meet the April 1, 2025 deadline and that disruptions to care were likely statewide.^[14]

The complaint describes a scheme that “funneled millions of dollars of extra revenue” to Public Partnerships LLC while small and mid‑sized New York home‑care businesses were pushed out of the program.^[15] Federal lawyers argue that many patients and aides faced paycheck delays, benefit confusion, and care gaps while the company chased higher profit margins.^[12] The Justice Department is asking the court to stop the alleged fraud, bar further misrepresentations about CDPAP, and appoint a receiver to take control of the company’s operations for the program.^[11]

Hochul Officials Deny Wrongdoing As Oversight History Raises Red Flags

Governor Kathy Hochul herself is not named as a defendant, but the case directly targets her administration’s health leadership and its controversial decision to scrap hundreds of local fiscal intermediaries in favor of a single, hand‑picked vendor.^[11] Hochul’s Department of Health has blasted the lawsuit as baseless and politically motivated, insisting that the procurement was fair, competitive, and designed to cut waste and save taxpayers money.^[1] Public Partnerships LLC likewise says it won the contract through a transparent process and denies any fraud.^[6]

Those assurances land in a state with a long record of Medicaid problems. Federal inspectors previously found New York improperly claimed tens of millions in Medicaid managed‑care reimbursements because plans failed to document eligibility and did not follow care‑planning rules.^[19] The Justice Department and state attorney general have also brought multiple home‑care fraud cases in recent years, including a 2024 settlement where two Brooklyn agencies agreed to pay nearly $10 million for falsely claiming they met wage and benefit rules for aides.^[2] For many conservatives, the new CDPAP lawsuit looks less like a shock and more like the latest chapter in a culture of loose oversight, union pressure, and political favoritism in blue‑state Medicaid.

🚨BREAKING: The DOJ just filed a lawsuit against Kathy Hochul’s admin, alleging it rigged the bidding on an $11 billion Medicaid homecare program.

I WARNED ABOUT THIS LAST YEAR

The bidding on the BIGGEST contract in NY history was insanely rigged and corrupt:

– The consulting… https://t.co/TN4wtyDr9j

— Libs of TikTok (@libsoftiktok) June 16, 2026

For families, the stakes are simple and high. If the Justice Department is right, New York leaders turned a vital home‑care program into a political and financial play, picking winners behind closed doors while taxpayers and fragile patients paid the price.^[14] If the state’s story holds up in court, the case will still expose how massive and vulnerable this $10 billion corner of government health spending has become. Either way, the fight underscores why many Americans want stricter oversight, real transparency, and limits on government power over their healthcare.