A New York state lawmaker is calling for an investigation after the U.S. Department of Justice filed a lawsuit alleging Governor Kathy Hochul’s administration improperly handled the bidding process for an $11 billion Medicaid home care contract.
The lawsuit, filed Tuesday by the Department of Justice in U.S. District Court for the Eastern District of New York, alleges state officials rigged the selection process for a company chosen to oversee payroll services for New York’s Consumer Directed Personal Assistance Program, commonly known as CDPAP.
According to the complaint, state officials consolidated payroll services for nearly 250,000 home care recipients and selected Public Partnerships LLC to administer the program. The state had argued the change would reduce costs and streamline operations, but the transition faced significant criticism and operational challenges.
The lawsuit names New York State Health Commissioner James McDonald and Medicaid Director Amir Bassiri as defendants. Governor Hochul is not named in the complaint, and the lawsuit does not directly accuse her of wrongdoing.
In response to the allegations, Assemblyman Chris Tague called for an investigation by the New York State Attorney General’s Office.
“This is a grave breach of public trust, and New Yorkers deserve answers immediately,” Tague said in a statement. “The DOJ’s allegations are explosive: a favored vendor, millions in taxpayer dollars allegedly siphoned away, vulnerable patients and caregivers left in chaos, and Hochul administration officials right in the middle of it.”
Tague further criticized the Hochul administration, saying the governor bears responsibility for actions taken by officials under her leadership and urging a full public investigation into the matter.
The Republican lawmaker said he would support public hearings, subpoenas if necessary, and efforts to hold those responsible accountable if the allegations are proven true.
Tague currently represents the 102nd Assembly District and is running for the 51st State Senate District seat, which includes Schoharie, Otsego, Delaware, Sullivan, and parts of Ulster, Broome, and Chenango counties.
The Department of Justice lawsuit remains pending in federal court.
