(Just The News)—In the wake of what appears to be billions of dollars worth of welfare fraud committed against 14 Minnesota Medicaid-funded welfare programs, Texas Gov. Greg Abbott on Monday directed two state agencies to investigate the potential misuse of taxpayer money in one program, Texas’ Child Care Services Program (CCSP).
So far, at least 98 people have been charged, including 85 Somalians, for their role in an alleged fraud scheme targeting 14 high-risk Medicaid-funded services through Minnesota Department of Human Services programs, Attorney General Pam Bondi announced last week. Sixty have already been found guilty, with some pleading guilty last month, The Center Square reported. The charges stem from a multi-year investigation.
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In October, Minnesota Gov. Tim Walz shut down all 14 programs and ordered a third-party audit of Medicaid billing at DHS. In December, he appointed a new director to implement a statewide fraud prevention program.
He did so as Assistant U.S. Attorney Joseph Thompson announced additional indictments stemming from a multi-year investigation into a scheme defrauding DHS programs created to help disabled children and adults, including those diagnosed with autism.
Three programs were targeted by alleged fraudsters for years, which have nothing to do with childcare facilities: Minnesota’s Housing Stabilization Services (HSS), Early Intensive Developmental and Behavioral Intervention Autism (EIDBI) and Integrated Community Services (ICS).
Less than a month after appointing a new fraud director, Walz announced Monday he is not running for reelection . Congressional hearings also are scheduled for next month to address extensive fraud allegations.
While several state-administered welfare programs in Texas do accept Medicaid funding, Texas does not have Medicaid-funded housing or similar programs that were created by the Walz administration. Texas is also one of several Republican-led states that chose not to expand Medicaid provisions.
Texas has also been the target of billions of dollars worth of healthcare fraud schemes involving Medicaid. In July, 55 people involved in a $15 billion healthcare fraud scam were federally charged in the Houston area, The Center Square reported.
Attorney General Ken Paxton claims the OAG’s Medicaid Fraud Control Unit played a key role in the “largest health care fraud takedown in U.S. history.” Their efforts resulted in federal criminal charges brought against 30 defendants last July connected to more than a dozen fraudulent health care schemes in Texas.
“The schemes collectively accounted for more than $177 million in fraudulent billings, $1.7 million in illegal kickbacks, and the unlawful diversion of over 10 million opioid pills,” Paxton said last July. “Charges brought through MFCU investigations included conspiracy to commit health care fraud, unlawful distribution of controlled substances, and violations of federal anti-kickback statutes.”
Despite this, Abbott’s directive does not mention Medicaid fraud.
In a letter to the heads of the Texas Workforce Commission and Texas Health and Human Services Commission, Abbott directed them to investigate any potential fraud within the CCSP.
He acknowledged that the agencies “already have strong anti-fraud processes in place like routine audits of providers and in-person site visits to facilities to ensure the physical safety of Texas children and the good stewardship of state dollars.” Their “strong anti-fraud measures have shown results,” Abbott said, adding that Texas’ percentage of improper payment rates is 0.43% compared to Minnesota’s approximate 11%, citing federal data.
Despite this, he said, “more can be done” because “schemes like the ones uncovered in Minnesota harm taxpayers as well as other families and children waiting to participate” in the CCSP. “Waste, fraud, and abuse of taxpayer dollars will not be tolerated and will be punished to the fullest extent of the law in Texas,” he added.
The TWC has broad authority under Chapter 301 of the Texas Labor Code to enhance fraud detection and prevention efforts, Abbott said. HHSC also has authority under Chapter 42 of the Texas Human Resources Code to regulate childcare facilities, he said.
Abbott directed the state agencies to “identify high-risk providers who participate in the [CCSP] and conduct additional site visits of those providers to ensure compliance with all applicable state and federal laws and regulations; “review current data collection efforts … to prevent, detect, and eliminate fraudulent activity;” ensure all providers participating in the CCSP “are accurately and verifiably reporting the number of children enrolled in the program;” review CCSP oversight processes for Local Workforce Development Boards to verify standards are uniformly upheld and take corrective action for those that aren’t; enhance access to the agencies’ online portal and hotline to make it easier for Texans to report fraud; and submit all completed provider fraud investigations to federal or state prosecutors.
The agencies were directed to provide a progress report to his office by the end of the month and a final report on their efforts by Feb. 27.
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