Full Breakdown
Justice Department Sues New York Over CDPAP Contract
6/17/2026, 8:56:12 AM
Justice Department Lawsuit Over CDPAP Contract
The Justice Department sued the New York Department of Health, Medicaid Director Amir Bassiri, Health Commissioner James McDonald, and Public Partnerships LLC (PPL). The complaint alleges a sham bid that pre-selected PPL to run the Consumer Directed Personal Assistance Program (CDPAP), misrepresentations about the transition, and contract violations that let the company bill Medicaid at rates generating millions in unauthorized profit. A 2024 law consolidated CDPAP management from 600 fiscal intermediaries into a single entity; PPL received the contract in October 2024.
Program Scale and Financial Stakes
CDPAP serves over 200,000 Medicaid beneficiaries and coordinates 260,000 personal assistants, billing 350 million care hours annually. The contract sets PPL’s compensation at $68.50 per member per month; the DOJ alleges higher hourly billing siphoned tens of millions from funds.
Impact on Patients and Taxpayers
The complaint says misrepresentations delayed the transition, left many caregivers unpaid or underpaid, and forced some patients into institutional care. The alleged profit extraction would erase projected savings, potentially costing taxpayers hundreds of millions.
Official Responses
The Justice Department called the suit a tool to stop fraud. New York’s Department of Health called it baseless and inexcusable, asserting the bid was fair and savings realized. Governor Hochul’s spokesperson called the action a sad attempt by the Trump administration to weaponize the justice system. Public Partnerships denied wrongdoing, saying the selection was transparent and competitive and pledging a full defense. Democratic officials called the case a politically motivated attack; Republican-aligned voices cited the alleged backroom deal.
Discrepancies and Gaps
The DOJ says the procurement was a sham that breached contract terms; New York officials argue the process was lawful, competitive, and yielded savings. The complaint claims the transition missed the April 1, 2025 deadline, while the Department of Health reports efficient progress. No audit of PPL’s billing is available, leaving the scale of alleged overcharges unclear.
Verbatim Quotes
- “New York’s backroom deal with PPL has cost taxpayers millions of dollars and cast countless Medicaid patients to the curb,” — Colin M. McDonald, Assistant Attorney General
- “New York’s failure to police a favored vendor that unlawfully siphoned millions of dollars of Medicaid funding is egregious and betrays the public trust.” — Brett A. Shumate, Assistant Attorney General
- “We strongly disagree with the characterizations in the complaint and will respond fully through the appropriate legal process.” — Public Partnerships LLC spokesperson
- “This is just another sad attempt by the Trump administration to weaponize the justice system to attack political opponents in an election year,” — Kara Cumoletti, spokesperson for Governor Kathy Hochul
Future Legal Steps
The DOJ seeks a permanent injunction, a freeze on any PPL payments above the $68.50 per-member-per-month rate, and a receiver to run CDPAP. Assistant Director Patrick Runkle and trial attorneys Francisco Unger and Shimeng Zhang lead the case. The court’s rulings will decide whether PPL remains the program’s fiscal intermediary.
