Massive $1.2 Billion NY Health Fraud Scandal Exposed: Scheme Dubbed 10x Worse Than Minnesota

Fraud in CDPAP isn’t just a problem at the top. State investigators say some caregivers — who earn between $18.65 and $20.65 an hour — have billed for patients already hospitalized, deceased, or even for overlapping shifts with multiple clients. One insider told The Post that some “personal assistants” have claimed 23-hour workdays caring for family members, racking up more than $200,000 a year in wages.

The so-called ‘fiscal intermediaries’, private companies that process payroll and paperwork for CDPAP participants, have also come under scrutiny. By 2023, more than 600 intermediaries were being paid collectively up to $1 billion a year, some charging $1,000 per enrollee monthly while providing minimal oversight.

Governor Hochul’s 2023 overhaul sought to clean up the mess by replacing hundreds of intermediaries with a single administrator — Public Partnerships, LLC (PPL), based in Georgia. The transition, fraught with lawsuits and delays, finally took effect in April 2025.

The state health department says the shift has already saved taxpayers $1 billion, cutting administrative costs by more than 90 percent. What once cost the state $1,000 per participant now runs about $68.50 a month, officials said.

“Fraudsters fought tooth and nail for over a decade to keep [the old] broken system in place – but those days are over because we shut them down,” a spokesperson told The Post.

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