MEDIA CONTACT
Jeff Powell (402) 471-6223, jeff.powell@nebraska.gov
Lincoln, Neb. – While recent reports have highlighted allegations of widespread fraud in multiple public programs in Minnesota, Nebraska continues to demonstrate strong stewardship of taxpayer dollars through rigorous oversight, auditing, and enforcement measures that protect the integrity of state-administered programs.
Nebraska has implemented multiple layers of fiscal and programmatic controls designed to ensure that funds are spent appropriately, only eligible individuals receive services, and bad actors are identified and removed swiftly.
“Let me make it crystal clear, if you try to commit fraud and steal from Nebraska taxpayers, you will get caught, and you will be prosecuted to the fullest extent of the law," said Governor Jim Pillen.
Strong Oversight Across Key Programs
Child Care and Development Fund Fraud Prevention
DHHS Child Care and Development Fund (CCDF) Program currently has safeguards in place to audit child care claims to reduce fraud and waste of state and federal dollars. Measures include targeted reviews of calendars that support claims submitted by child care providers and on-site visits. Paid claims are reviewed to identify concerns. Identified claims are referred to an internal team who audits the claims and determines if there was an overpayment. More recently, DHHS enhanced it's billing system to suspend claims, prior to payment, if multiple providers bill for the same child, an excessive number of hours, or overtime exceeds and established threshold.
Providers may also be referred to the Special Investigation Unit if fraud is suspected. DHHS has dedicated positions for child care provider fraud investigations and audit reviews. Results of these reviews can lead to provider probation, and possible termination from the child care subsidy program. If a client is found guilty of fraud, their ability to receive subsidy is suspended or prohibited.
DHHS is eager to work with federal partners to strengthen current practices to enhance the integrity of the state's child care program.
Housing Assistance
Nebraska's housing programs, administered through the Divisions of Behavioral Health (BH) and Public Health (PH), are subject to annual fiscal and programmatic audits of contracted agencies. These reviews ensure that documentation aligns with services delivered, invoices reflect legitimate expenses, and providers and recipients meet eligibility requirements.
BH further monitors cost trends, length of stay, and funding caps to prevent unreasonable expenditures. While PH conducts comprehensive annual financial reviews and fiscal risk assessments that may require additional documentation when risks are identified. Providers found out of compliance may face corrective action, contract termination, or legal referral.
Applied Behavioral Analysis (ABA) Services
Within the Division of Medicaid and Long-Term Care (MLTC), Nebraska proactively addressed rising ABA costs by identifying irregular spending early, adjusting reimbursement rates, strengthening provider credential requirements, increasing the frequency of program integrity audits, and implementing rigorous authorization processes. MLTC works closely with the Attorney General's Office to investigate and act against fraudulent behavior.
Food Assistance Programs
Nebraska maintains robust safeguards in both food voucher and food hub programs.
Food vouchers administered through the Division of Children and Family Services (CFS) are limited to approved items, paid directly to verified grocery stores, and include security features that prevent duplication. Sub-recipients must submit paid invoices and expense documentation, which are audited regularly.
The Office of Economic Assistance (OEA) contracts directly with food hubs after verifying insurance, nonprofit status, executed agreements, and federal tax documentation. Risk assessments and monitoring plans are updated annually, and fiscal desk reviews of historical expenditures are conducted to identify waste or misuse.
“Safeguarding public resources is essential to helping people live better lives," said DHHS CEO Steve Corsi. “DHHS has built a culture of accountability that emphasizes prevention, early detection, and decisive action when fraud arises."
A Clear Contrast with Minnesota
Recent high-profile fraud cases in Minnesota highlight the importance of strong internal controls. Minnesota has faced allegations of widespread fraud in multiple programs, including a nonprofit food distribution initiative that continued to receive funding despite repeated complaints, a housing program that ballooned from an estimated $2.6 million to more than $100 million in two years due to inadequate controls, and an ABA program involving false claims and illegal kickbacks.
In contrast, Nebraska's systems are designed to identify irregularities early, limit financial exposure, and intervene before losses occur.
Swift Action When Issues Arise
When unscrupulous providers or recipients are identified in Nebraska, DHHS acts quickly. Agreements are terminated when warranted, corrective action plans are imposed, and findings are promptly referred to the Office of the Attorney General following rigorous internal investigation.
Commitment to Accountability
Nebraska's approach reflects a long-standing commitment to fiscal responsibility and program integrity.
“In Nebraska, we ensure the legitimacy of our providers and the proper use of public funds," said Corsi. “Our multi-level auditing and monitoring protections help ensure citizens receive the right services, in the right amount, from the right organizations."
Report Fraud
DHHS investigates allegations of potential fraud in programs including Medicaid, energy assistance, Assistance to the Aged, Blind and Disabled, Temporary Assistance to Needy Families, Social Service Block Grants and the Supplemental Nutrition Assistance Programs. To report fraud, please click here.
Medicaid provider fraud
To report suspected Medicaid provider fraud or possible abuse, neglect or financial exploitation of patients in Medicaid facilities, please click here.
Licensed, registered or certified healthcare professionals/occupations
DHHS is responsible for investigating complaints against professionals in healthcare professions and occupations. Please use the public complaint form to report concerns regarding a licensed or unlicensed health professional, or licensed business establishment.
To report fraud, waste, or abuse occurring in Nebraska government, call the Nebraska Auditor of Public Accounts' office Hotline at 1-800-842-8348 or visit https://auditors.nebraska.gov/SAE_E-Mail.html
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