Governor Kathy Hochul is facing mounting scrutiny as the U.S. Department of Justice opens a formal investigation into her administration’s controversial overhaul of New York’s $9 billion Medicaid-funded home care program. The move comes after months of chaos, complaints, and court interventions tied to the rollout of reforms that were supposed to streamline services and reduce fraud.
At the heart of the controversy is Hochul’s decision to consolidate more than 600 fiscal intermediaries into a single vendor—Public Partnerships LLC (PPL). The new centralized system was tasked with managing payroll and administrative duties for approximately 280,000 vulnerable home care recipients under the state’s Consumer Directed Personal Assistance Program (CDPAP). But the transition has been anything but smooth.
Caregivers and patients across the state have reported widespread service interruptions, delayed payments, and confusion about eligibility. The problems were so severe that a federal court stepped in to delay the original April 1 implementation deadline, citing massive backlogs and a poorly executed rollout.
In a recent filing, the DOJ’s Consumer Affairs Branch blasted the transition as deeply flawed. Officials warned of structural failures, logistical breakdowns, potential privacy violations, and misleading communications with service recipients. The investigation is also reportedly examining whether the $1.05 billion contract awarded to PPL was improperly steered through a rigged procurement process.
Democratic Congressman Ritchie Torres has joined the growing chorus of critics, raising red flags about the bidding process. Torres alleges that PPL may have been preselected before a fair and competitive review took place. He is now calling for federal and state watchdogs to fully audit the deal and the state’s handling of the program overhaul.
Despite the uproar, the Hochul administration continues to defend the reforms, framing them as a responsible effort to eliminate waste, fraud, and abuse in the Medicaid system. A spokesperson argued that cutting out unnecessary administrative layers would lead to a leaner, more efficient delivery model.
But for thousands of New Yorkers who rely on these services, the transition has been anything but efficient. Advocates warn that mismanagement could endanger the very people the program is meant to protect: low-income seniors, individuals with disabilities, and family caregivers already stretched to the limit.
With the federal investigation now underway, pressure is mounting on Hochul to answer for what critics describe as a disaster of her own making—one that could have long-term consequences for home care in New York and beyond.