Medicaid Fraud Probe
US sues New York over alleged $10 billion Medicaid homecare fraud scheme
A Medicaid fraud probe is underway, with the Trump administration suing New York and a contractor that runs a big Medicaid-funded home care program for the state, alleging the company is improperly keeping part of the care payments as part of a fraud scheme. The lawsuit, filed on June 16, 2026, in the Eastern District of New York, accuses Public Partnerships LLC of participating in the alleged scheme, which is estimated to involve the state's $10 billion Medicaid homecare program. Top New York health officials, including the state's Medicaid director, are also named in the lawsuit.
The alleged scheme involves rigging the bidding process for managing the state's Medicaid homecare program, which is said to harm patients. The lawsuit claims that Public Partnerships LLC is improperly keeping part of the care payments, which is a violation of the Medicaid program's rules. The Trump administration is seeking to recover the improperly kept payments and to prevent further fraud. The lawsuit is part of a larger effort to crack down on healthcare fraud, which has resulted in the biggest healthcare fraud crackdown in US history, targeting $14.6 billion in alleged scams.
In a separate case, Tina Marie Armstrong was indicted for billing nearly $199,000 to Medicare and Medicaid for durable medical equipment that was not delivered or authorized. This case is part of a nationwide crackdown on healthcare fraud, which has involved multiple law enforcement agencies and has resulted in numerous arrests and indictments. The crackdown has also involved the use of advanced technology, such as data analytics, to detect and prevent fraud.
In Florida, Governor Ron DeSantis has announced a statewide crackdown on Medicaid fraud, aiming to stop improper payments before taxpayer dollars leave the system. The effort, which was announced on June 17, 2026, will involve the use of a company called SentiLink to help identify and prevent fraud. The Florida Health Care Administration will also be revalidating providers to ensure that they are legitimate and eligible to receive Medicaid payments. The goal of the effort is to protect taxpayer dollars and ensure that Medicaid payments are made only to legitimate providers for legitimate services.
The Medicaid fraud probe in New York is ongoing, with the Justice Department seeking to recover millions of dollars in improperly kept payments. The lawsuit against Public Partnerships LLC and top New York health officials is a significant development in the probe, and it is likely to have major implications for the state's Medicaid program. As the crackdown on healthcare fraud continues, it is likely that more cases will come to light, and more individuals and companies will be held accountable for their role in perpetuating fraud.
As I reflect on the Medicaid fraud probe, I firmly believe that immediate action is necessary to prevent further abuse of the system. My thesis is that without stringent reforms, Medicaid fraud will continue to drain vital resources from those who need them most. If nothing changes, the real winners will be the scam artists and corrupt individuals who exploit the system for personal gain, leaving vulnerable populations to suffer the consequences. It is our responsibility to demand accountability and ensure that Medicaid funds are used for their intended purpose: providing essential healthcare to those in need, not lining the pockets of fraudsters.
Cross-reference independently — do not take our word for it.
Disclosure: NewsAnarchist uses AI-assisted reporting with web search. Always verify primary sources linked above.