Federal Investigation Into New York’s Medicaid Homecare Program
ALBANY – There’s growing concern about New York Governor Kathy Hochul’s effort to streamline a key $9 billion Medicaid home care program. Federal investigators are now looking into how these changes are being implemented.
The U.S. Department of Justice (DOJ) has been speaking with officials from Public Partnerships, LLC (PPL), the company chosen by the state’s Department of Health to manage payroll services for the Consumer Directed Personal Assistance Program (CDPAP). Insiders report that the DOJ has been actively investigating the transition, focusing on various issues that have emerged since the switch was announced.
A source close to the investigation shared that the agency is dedicating considerable resources to this inquiry, potentially leading to criminal or civil action once the investigation wraps up. The agency’s Consumer Affairs Branch is particularly involved, indicating the seriousness of the concerns.
Under the new plan, nearly 280,000 individuals receiving care through CDPAP have had to switch to PPL for payroll services. The Hochul administration claims this move aims to reduce instances of fraud and waste, which have reportedly plagued the existing system. However, many advocates worry that the forced transition could do more harm than good.
The transition has already seen significant challenges. A court recently had to step in to manage an unrealistic deadline set by the Department of Health, which was April 1. Many home care aides have reported serious delays in receiving payments, causing them financial strain and prompting some to take legal action. Even with the court’s intervention, caregivers are still facing ongoing payment issues.
Earlier this year, the DOJ expressed its intent to monitor the situation closely. A six-page “statement of interest” from the DOJ has raised alarms about the health department proceeding with the transition despite warnings that it might fail. This statement referenced concerns over misrepresentations made about consumer eligibility for Medicaid and the potential risks to sensitive health data.
Patrick Runkle, Assistant Director of the DOJ’s Consumer Affairs Branch, noted in court filings that the transition process has been fraught with numerous structural and operational issues. He emphasized the difficulties in transferring CDPAP services for such a large population within a short time frame. This situation raises questions about the motives behind the overhaul, especially allegations that PPL’s contract—worth $1.05 billion—was improperly awarded.
According to sources familiar with the investigation, the DOJ is looking closely at the entire scope of the transition, including how PPL was selected. The investigations are not only about operational missteps but also delving into the integrity of the contracting process itself.
In response to these criticisms, a spokesperson for Governor Hochul defended the changes, stating that they are necessary to curb what they term "runaway bureaucratic spending." They argue that eliminating over 600 middlemen will help cut waste and improve efficiency within the system.
The spokesperson insisted that the CDPAP transition is "proceeding effectively" and affirmed the administration’s commitment to ensuring that both consumers and workers receive the necessary care and support. They expressed confidence that the Department of Health would continue working with all relevant stakeholders throughout this process.
Meanwhile, a representative from PPL stated their commitment to supporting consumers and workers as they navigate the ongoing changes. The health department also reiterated its dedication to maintaining continuity of care for consumers and fair treatment for personal assistants involved in the program.
The outcome of the federal investigation could have significant implications not just for the Hochul administration, but for the future of Medicaid home care services in New York. As stakeholders await further developments, questions about accountability, efficiency, and the overall integrity of the home care program remain at the forefront of public discourse.
