Report shows Nebraska DHHS overpaid child care providers millions of dollars low-income subsidy
Nebraska's Department of Health and Human Services is under scrutiny again.
This time, over allegations that the state overpaid child care providers millions of dollars.
State Auditor Mike Foley's latest report indicates DHHS may have been bilked out of more than $12.8 million between July 1, 2023, and March 31, 2024.
"These are deliberate, we believe deliberate, falsifications of records, where agencies are double billing HHS," Foley said.
The Child Care NFOCUS Aid program helps low-income families remain in the workforce by subsidizing childcare costs.
In a nine-month sampling, auditors looked at $93 million in federal and state money paid out.
Foley said nearly $13 million of that is suspect.
"Billing on days when the child care center wasn't even open, like Thanksgiving Day or Christmas Day. The billing is when the child is at school and not even in the day care system. Billing when the child is at another day care agency, not at yours, are double billing, triple billing — all unacceptable practices. They're getting away with it, and we're blowing the whistle on them. Now, this has got to stop," Foley said.
The report named some providers.
Many are located in the Omaha metro.
KETV Investigates reached out for a response.
Many hadn't heard of the audit and wanted more information before commenting.
The owner of one facility located in North Platte said the state's online billing process was changed and it is very confusing.
She said there was no attempt to over bill and if they owe any money they will pay it back.
DHHS said its fraud unit is working to recover some of the overpayments.
In a statement, DHHS CEO Steve Corsi said he appreciates the auditor's efforts to safeguard tax dollars.
"Since being appointed CEO of DHHS just under 10 months ago, our main focus has been to evaluate the Department and begin putting in place effective safeguards to ensure taxpayer dollars are allocated properly," Corsi said.
"These efforts will be continued aggressively. We look forward to the ongoing collaboration with the State Auditor's office," Corsi said.
Foley said there has been a change with the new leadership.
"They're being more cooperative with us. They're not pushing back. They're not hiding records from us that the witness. Not a cat-and-mouse game anymore. They're serious about cleaning this stuff up," Foley said.
In February, an auditor's report found DHHS mishandled tens of millions of federal funds under the Medicaid-funded Personal Assistance Program.
That report found DHHS was not catching questionable billings for services to disabled Nebraskans.
DHHS said it would work to put safeguards in that program, too.