politics
Justice Department Sues New York Over Alleged Medicaid Fraud in Home Care Program
The U.S. Justice Department filed a civil lawsuit accusing New York state officials and a contractor of facilitating fraud in a $10 billion Medicaid home care program. The suit claims the contractor used a sham bidding process and inflated rates, generating millions in illegal profits.
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U.S. Justice Department filed a civil lawsuit in Brooklyn federal court on June 16, 2026, accusing New York state officials of facilitating fraud in a $10 billion Medicaid program that provides home care to disabled patients.
The suit names the New York Department of Health, its Medicaid director, and Public Partnerships LLC, a company based in Alpharetta, Georgia, as defendants. It accuses the company of creating an “artificially attractive proposal” to administer the program through a “sham bid process” and of improperly inflating hourly billable rates after taking over last year.
The federal government asked the court to order an end to any wrongdoing and to appoint a receiver to run Public Partnerships LLC. The lawsuit claims the company generated millions of dollars in illegal profits through its operation of the program.
It also claims the company and New York officials repeatedly misrepresented when the company’s contract would begin, causing severe disruptions to patient care statewide. Officials ignored limits on what the company was entitled to pocket in profits, spoiling a plan to save hundreds of millions of dollars.
" The lawsuit was filed two months after President Donald Trump’s administration acknowledged making a significant error in facts used to justify its fraud probe into New York’s Medicaid program.
The company stated the program serves more than 250,000 New Yorkers who rely on home care and hundreds of thousands of caregivers. The department stated the courts have confirmed the hiring of Public Partnerships was accomplished through a fair and legally sound competitive bidding process.
It stated it looks forward to the day when disingenuous attacks stop and New York can be viewed as a model for controlling costs and improving quality of care.
