NEW YORK (AP) — The U.S. Justice Department accused New York state officials Tuesday of facilitating fraud, saying they let a Georgia company use a sham bidding process to gain control of and then abuse a $10 billion program to provide home care to disabled Medicaid patients.
Federal lawyers made the claims in a civil lawsuit in Brooklyn federal court, naming the state’s Department of Health, its Medicaid director and the Alpharetta, Georgia-based company Public Partnerships LLC, as defendants.
In the lawsuit, the federal government asked a judge to order the end to any wrongdoing and to appoint a receiver to run the company.
The lawsuit came two months after President Donald Trump’s administration acknowledged it made a significant error in facts to help justify its fraud probe into New York’s Medicaid program, undercutting a federal campaign to tackle waste, mostly in Democratic-led…
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