Representative Elise Stefanik is urging federal authorities to intensify their investigation into allegations of bid-rigging within the Hochul administration regarding a $1 billion Medicaid homecare contract. This call for action follows the emergence of emails that show state officials met with representatives from the eventual contract winner two weeks before the bidding process officially started.

Stefanik, a Republican from upstate New York who is eyeing a gubernatorial challenge against Democratic Governor Hochul in the upcoming election, addressed a letter on December 9 to U.S. Attorney General Pamela Bondi. In the letter, she referred to “recent bombshell allegations,” highlighting an April 4, 2024, email from Amanda Lothrop, the Chief Operating Officer for Medicaid at the state Health Department, to key executives at Public Partnerships LLC (PPL), based in Georgia.

The email, which became public through a Freedom of Information Law request by the Empire Center for Public Policy, a government watchdog group, invited PPL representatives to a virtual meeting. In the communication, Lothrop expressed appreciation for the opportunity to connect and mentioned looking forward to further discussions about PPL’s experience in financial management services (FMS) and its potential application in New York.

Lothrop’s email suggests that state officials engaged with PPL representatives two weeks prior to the state Legislature giving the green light for the bidding process. This was well before PPL was selected to handle payroll services for the widely used $11 billion Consumer Directed Personal Assistance Program, Stefanik noted in her letter.

The email “provides further validation” that state officials met with PPL two weeks before the state Legislature authorized bidding to begin — and long before the company was tapped to manage payroll services for the popular $11 billion Consumer Directed Personal Assistance Program, the congresswoman wrote.

Stefanik also noted that state Sens. Jim Skoufis (D-Orange) and Gustavo Rivera (D-Bronx) have accused Hochul of retaliating against them for continuing a state probe into the contract, including Hochul vetoing several of Skoufis’ bills.

“As the [DOJ] continues its inquiry, I respectfully urge your office to ensure that this investigation proceeds with urgency and transparency and with the full weight of federal oversight,” Stefanik wrote. 

“Given the magnitude of the funds involved, the vulnerable population served, and the disturbing pattern of alleged retaliation and opacity emerging from Governor Hochul’s office, New Yorkers and the American people deserve full accountability.”

The DOJ declined comment.

In October, a state appellate panel tossed a lawsuit brought by opponents of the consolidation contract who claimed it was awarded through a “sham bidding process,” and Hochul reps have repeatedly insisted the process was competitive.

“No matter what false claims anyone makes, here’s the bottom line: New York State rescued CDPAP from a fiscal crisis, protected home care for the people who need it, and saved $1 billion this year for taxpayers,” said Hochul spokesman Sam Spokony.

He also insisted the Lothrop email “obviously had nothing to do with the procurement process that was implemented by the Department of Health after being passed by the State Legislature.”