Investigation Into Medicaid Contract Allegations Intensifies

Congresswoman Elise Stefanik is urging federal authorities to enhance their inquiry into claims of bid rigging linked to the Hochul administration concerning a $1 billion Medicaid home health contract. This call for action follows the emergence of emails indicating that state officials interacted with representatives from the winning bidder just two weeks before the bidding process commenced.

Stefanik, a Republican from upstate New York who is gearing up to challenge Democratic Governor Hochul in the upcoming gubernatorial election, reached out to Attorney General Pamela Bondi on December 9. In her letter, she highlighted “recent bombshell statements” that have come to light, specifically citing an email from April 4, 2024, sent by Amanda Lothrop, the Medicaid chief operating officer at the state health department, to executives at Public Partnership LLC, based in Georgia.

This email was accessed via a Freedom of Information Act request through the Empire Public Policy Center, a government watchdog group. Lothrop’s message invites PPL officials to join an online meeting along with three other state officials.

In the email, Lothrop expressed appreciation for their communication, saying, “I look forward to continuing to discuss your FMS,” meaning financial management services, along with related considerations specific to New York.

The content of this email reportedly confirms that state officials met with PPL prior to the state’s legislative approval of the bid, well before the company was tasked with managing payroll services for a significant $11 billion consumer personal assistance program.

Stefanik also mentioned that state Senators Jim Skoufis and Gustavo Rivera have accused Hochul of retaliating against investigators concerning the contract situation, alleging she vetoed several bills proposed by Skoufis.

“As DOJ continues its inquiry, we respectfully ask that this investigation occurs with urgency, transparency, and thorough federal oversight,” Stefanik emphasized, pointing out the substantial funds at stake, the importance of the services to vulnerable populations, and the concerning pattern of retaliation claims emerging from Hochul’s office that necessitate full accountability for New Yorkers and all Americans.

The Justice Department has opted not to comment on the situation.

Previously, in October, the state Board of Appeals rejected a lawsuit from opponents of the combined contract, which claimed the bidding process was illegitimate. Hochul’s representatives have consistently asserted that the process remained competitive.

In response to the allegations, Hochul’s spokesman, Sam Spokony, stated, “No matter what false claims anyone makes, the bottom line is this: New York saved CDPAP from financial crisis, protected those in need of home health care, and saved taxpayers $1 billion this year.” He also contended that Lothrop’s email did not pertain to the procurement process carried out by the Department of Health after the legislature’s approval.