The U.S. Department of Justice has filed a sweeping lawsuit against the New York State Department of Health, Medicaid Director Amir Bassiri, and Public Partnerships LLC (PPL), alleging that a 2024 bidding process for the state’s Consumer Directed Personal Assistance Program (CDPAP) was manipulated to favor a single contractor.
According to prosecutors, state officials had effectively selected PPL before the competitive process was completed. The complaint alleges that timelines were misrepresented and that lax oversight allowed excessive billing practices that wiped out projected savings worth hundreds of millions of dollars. Federal officials argue that the arrangement ultimately harmed both patients and caregivers while placing a heavier burden on taxpayers.
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Vice President JD Vance sharply criticized the alleged conduct, calling it “disgraceful fraud” that diverted public funds intended for health care services. New York Governor Kathy Hochul pushed back against the allegations, describing the lawsuit as politically motivated and pledging a vigorous defense. Her administration maintains that reforms to the program have generated approximately $1 billion in savings.
The controversy gained further attention after a video clip from a Department of Justice announcement went viral on X.
“My name is Matthew Gagliotti and I’m the head of the Justice Department’s Criminal Division. Thank you all for joining us today as we announce the largest coordinated health care fraud takedown in the history of the Department of Justice.
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Today marks a decisive moment in our fight to protect American taxpayers from fraudsters and to defend the integrity of America’s health care system. We are announcing today charges against 324 defendants for their alleged participation in health care fraud schemes involving approximately $14.6 billion in false claims submitted to Medicare, Medicaid, and other health care programs.”
The remarks were part of a broader Justice Department announcement reflects nationwide efforts to combat health care fraud and recover taxpayer funds. The case involving New York’s CDPAP program now adds another high-profile dispute to the federal government’s expanding scrutiny of health care spending and oversight.