The Trump administration has filed a lawsuit against senior New York health officials and Public Partnerships LLC (PPL), alleging that the bidding process for managing the state’s Consumer Directed Personal Assistance Program (CDPAP) was improperly influenced in favor of the company. The U.S. Department of Justice claims that PPL was effectively pre-selected for the contract and subsequently generated millions of dollars in improper profits from the Medicaid-funded homecare program, which serves more than 200,000 patients and 260,000 personal assistants across New York.
The lawsuit names New York Health Commissioner James McDonald, State Medicaid Director Amir Bassiri, and PPL as defendants. Federal authorities allege that qualified competitors were unfairly excluded from the bidding process and that state officials faced pressure from the Governor’s Office while evaluating proposals. The Justice Department is seeking to halt the alleged fraud, appoint a receiver for PPL, and recover funds it says were improperly obtained through the management contract.
New York officials have strongly denied the allegations, calling the lawsuit politically motivated. A spokesperson for Governor Kathy Hochul stated that the state’s transition to a single fiscal intermediary has already saved taxpayers more than $1 billion while reducing fraud, waste, and abuse. PPL also rejected the accusations, maintaining that it won the contract through a transparent and competitive process and has helped modernize the CDPAP program. The case sets the stage for a major legal battle over one of the nation’s largest Medicaid homecare initiatives.
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