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Feds allege NY officials rigged $11B Medicaid bid, draining taxpayer funds

The Justice Department filed suit against Gov. Hochul’s health officials, alleging they rigged the bid for New York’s $11 billion Medicaid homecare program and steered it to a favored vendor, allowing millions to be siphoned from Medicaid during a chaotic transition that impacted hundreds of thousands of recipients. The complaint names Health Commissioner James McDonald and Medicaid Director Amir Bassiri and cites emails showing Hochul’s involvement, while Hochul’s office denies wrongdoing and calls the suit a political attack.