Albany, NY – March 2, 2025 – New York Governor Kathy Hochul is under scrutiny following accusations that her administration manipulated the bidding process for a $9 billion Medicaid contract tied to the state’s Consumer Directed Personal Assistance Program (CDPAP). The allegations, which have sparked calls for investigation and triggered a lawsuit, center on claims that Hochul’s team pre-selected an out-of-state contractor, Public Partnerships LLC (PPL), to oversee the lucrative home care initiative, sidelining hundreds of existing providers.
The controversy erupted late last year when Freedom Care LLC, a New York-based home care agency, filed a lawsuit in state Supreme Court, alleging that the Hochul administration violated public contracting laws by rigging the bid in favor of PPL. Supporting the claim, Carlos Martinez, CEO of BRIDGES, a Rockland County home care agency, submitted a sworn affidavit asserting that a state official informed him in April 2024—months before the bidding process officially began—that PPL had already been chosen to manage the program. Critics, including Bronx Democratic Representative Ritchie Torres, have seized on this testimony, labeling it a “smoking gun” indicative of a “backroom deal.”
The CDPAP, which allows elderly and disabled New Yorkers to hire caregivers of their choosing—often family members—has ballooned in cost from $2.5 billion in 2019 to over $9 billion annually, serving nearly 280,000 recipients. Hochul has defended the overhaul, arguing that consolidating the program’s 600-plus fiscal intermediaries into a single contractor will curb waste, fraud, and abuse, potentially saving taxpayers $500 million annually. Her administration maintains that the bidding process was transparent, with PPL emerging as the highest-scoring applicant among 100 respondents.
“This is about protecting home care users and taxpayers,” a Hochul spokesperson said in a statement. “No state official knew in April who would be selected, and claims to the contrary are baseless attempts to derail much-needed reforms.”
However, the allegations have gained traction, fueled by additional revelations. In December 2024, reports surfaced that PPL posted job listings for managerial roles tied to the contract as early as August—nearly two months before the official award announcement—prompting critics to argue that the outcome was predetermined. Bryan O’Malley, executive director of the Alliance to Protect Home Care, an industry group representing displaced intermediaries, called it “a mountain of evidence pointing to a rigged bid.”
Representative Torres, a vocal critic of Hochul and a potential challenger in the 2026 gubernatorial race, has twice called for state and federal investigations into the contract award, accusing the administration of exempting the process from independent oversight by the state comptroller. “There may be something rotten in the state of New York under Governor Kathy Hochul,” Torres wrote in a letter to inspectors general last year, urging a probe into what he termed a “multi-billion dollar boondoggle.”
Adding to the complexity, opponents allege that PPL coordinated with the powerful healthcare union 1199SEIU to secure the contract, a move they claim was designed to facilitate unionization of caregivers and boost membership dues—a charge Hochul’s team and PPL have denied. A spokesperson for PPL dismissed the job posting criticism, stating that such preparations are standard practice for large state contracts and that no hires were made prior to the award.
The Hochul administration has faced mounting pressure as the transition to PPL, slated for completion by April 2025, moves forward. Multiple lawsuits from displaced providers seek to annul the contract, while a $10 million advertising campaign funded by undisclosed donors has blanketed the state, accusing Hochul of “gutting” the program. In response, State Health Commissioner James McDonald has requested an investigation into the campaign’s backers, alleging they may be violating ethics and disclosure laws. 17GEN4.com
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