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Hochul’s $11 billion bid-rigging scandal is how Medicaid works in New York

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Hochul’s $11 billion bid-rigging scandal is how Medicaid works in New York

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With the feds joining the parade calling out fraud in Gov. Kathy Hochul’s rancid home-care-aide “reform,” maybe the fundamental corruption of New York’s Medicaid programs will start to unravel.

The Justice Department’s Civil Division last week filed suit over the 2024 scheme to consolidate payrolls for nearly 240,000 home care aides covered by the $11 billion Consumer Directed Personal Assistance Program.

That makes a half-dozen lawsuits so far: It’s a parade!

Under CDPAP, Medicaid covers aides to help out elderly or disabled folks around the house, paying roughly $20 an hour.

New York lawmakers loosened the rules in 2015 so friends or relatives could get paid to do the work — whereupon costs rose by the billions as enrollment doubled.

The number of “middlemen” (businesses and nonprofits) that handle CDPAP payrolls shot up from seven to 700 — as scams skyrocketed, too.

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