The U.S. Department of Justice has filed a lawsuit against the New York state Department of Health and related officials over the transition of the state's Consumer Directed Personal Assistance Program (CDPAP) to a single fiscal intermediary — Public Partnerships LLC.

In the suit, filed Tuesday in the Eastern District of New York, the DOJ argues that the state DOH conducted a "sham bid process" and failed to take action to hold Public Partnerships LLC accountable, accusing PPL of siphoning millions of dollars in Medicaid funding by generating "unauthorized profits."

CDPAP allows Medicaid members in New York who are eligible for home care services to choose and hire their own personal caregiver.

The state in 2024 moved to streamline the CDPAP home care program in an effort to curb soaring Medicaid expenses. The transition in the state’s Medicaid policy has seen a troubled rollout and investigations by the state Legislature into accusations of bid-rigging in favor of PPL.

“New York’s backroom deal with PPL has cost taxpayers millions of dollars and cast countless Medicaid patients to the curb. Today’s action is the latest reminder that the Justice Department is mobilizing every available tool to protect taxpayer-funded programs from fraud and corruption,” U.S. Assistant Attorney General Colin McDonald said in a statement.

The state Department of Health blasted the lawsuit in a statement Tuesday afternoon.

“This baseless complaint is the latest attempt by Washington Republicans to score political points at the expense of vulnerable New Yorkers.  It is inexcusable and completely lacking in merit," said Cadence Acquaviva, a spokesperson for the state Department of Health. "The fact of the matter is this administration saved CDPAP from a fiscal crisis by removing hundreds of wasteful administrative middlemen. In the process, we reduced costs for state and federal taxpayers while protecting home care for those who need it."