Elise Stefanik calls on feds to ramp up bid-rigging probe of Hochul homecare contract after ‘bombshell’ email emerges
Elise Stefanik, the Republican congresswoman from upstate New York who is slated to run against Governor Hochul next year, has called on the federal government to deepen its investigation into alleged bid‑rigging for a $1 billion Medicaid home‑care contract.
The allegation came after newly released email correspondence showed that state officials had met with representatives of the winning contractor, Public Partnerships LLC (PPL), two weeks before the bidding process officially opened.
In a letter dated December 9 to Attorney General Pamela Bondi, Stefanik warned that “recent bombshell allegations have surfaced.” She cited a March 4, 2024 email sent by Amanda Lothrop, the State Health Department’s Medicaid Chief Operating Officer, to senior executives at PPL.
The email, which the Empire Center for Public Policy obtained through a FOIL request, invites the PPL team to an online discussion with Lothrop and three other state officials. “Thanks so much for taking time to connect,” Lothrop wrote. “We look forward to continuing the discussion about your FMS [financial management services] experience and our NY considerations.”
Stefanik argued that this message confirms that state officials held a meeting with PPL well ahead of the legislature’s authorization to begin the bidding. She noted that this was long before PPL was chosen to manage payroll services for the $11‑billion Consumer‑Directed Personal Assistance Program (CDPAP).
On the other side, Hochul has repeatedly maintained that the bidding process was fair and competitive. She has also defended the contract’s value, saying that the program saved taxpayers roughly $1 billion this year while safeguarding essential home care for vulnerable residents.
Stefanik pointed out that State Senators Jim Skoufis (D‑Orange) and Gustavo Rivera (D‑Bronx) have accused Hochul of retaliating against them for pursuing an investigation into the contract. The senators claimed that the governor vetoed several of Skoufis’ bills in response.
In her letter, Stefanik urged the Department of Justice to conduct the inquiry with “urgency and transparency” and to apply the full weight of federal oversight. She explained that, given the large sums involved and the troubling pattern of alleged retaliation and opacity, both New Yorkers and the national community deserve comprehensive accountability.
The DOJ declined to comment on the matter. In October, an appellate panel dismissed a lawsuit from opposition groups that alleged the contract was awarded through a “sham bidding process.” Hochul’s spokesperson, Sam Spokony, countered by stating that 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.”
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