Albany, New York – The U.S. Justice Department has accused New York health officials and Public Partnerships LLC of allowing fraud in a $10 billion Medicaid home care program, but the claims remain allegations in a civil lawsuit and have not been proven in court.
The lawsuit, filed in federal court in Brooklyn, targets New York’s Consumer Directed Personal Assistance Program, which allows people with disabilities to hire caregivers, including family members. Federal lawyers allege the state used a “sham” bidding process to make Public Partnerships LLC the program’s sole fiscal intermediary.
The DOJ claims Public Partnerships, a Georgia-based company, generated millions of dollars in improper profits by charging excessive hourly rates and exploiting weak state oversight. The lawsuit seeks to stop the alleged conduct, remove the company from its role, and appoint a receiver.
New York officials denied wrongdoing and said the bidding process was fair, competitive, and legally sound. Gov. Kathy Hochul’s office accused Washington Republicans of politicizing the case and said the program changes saved taxpayers more than $1 billion.
Public Partnerships also denied the allegations, saying its selection was transparent and lawful. At this point, there is evidence of a federal accusation and lawsuit, but no court ruling establishing fraud.
Sources:
- Associated Press – MBFC Rating
- Reuters – MBFC Rating
- U.S. Justice Department – Unrated
Discover more from News Facts Network
Subscribe to get the latest posts sent to your email.
