The U.S. Department of Justice (DOJ) sues New York State and certain state officials over an alleged Medicaid home-care fraud scheme. Filed Tuesday in the Eastern District of New York, the lawsuit targets the New York State Department of Health, the state’s Medicaid director, and Public Partnerships LLC (PPL), which operates a large home-care program for Medicaid participants.
According to the DOJ, the scheme involves the use of a sham or improper bidding process that allowed PPL to gain control of the program and then allegedly abuse the roughly $10 billion Medicaid home-health initiative. DOJ says the company and related parties make false or misleading statements about PPL’s ability to take over and manage the Consumer Directed Personal Assistance Program and related consumer-directed services.
The complaints describe concerns about how the transition and oversight of the program were handled, and they allege wrongdoing that contributed to fraud within the Medicaid system for disabled individuals who receive home care. The sources report that the DOJ is seeking legal remedies through the federal court filing, while the state and the company have not been described in the provided excerpts as conceding the allegations.
