Director of Idaho child care nonprofit sentenced for Medicaid fraud

The director of a North Idaho nonprofit that helps children with disabilities has pleaded guilty to Medicaid fraud.

While applying for Medicaid funds for North Star Child Development Center, Tracy Hofius knowingly submitted incorrect information to increase the organization’s Medicaid reimbursement. North Star fraudulently received $154,119 in Medicaid reimbursement. Many of the services Medicaid paid for were not provided by Hofius or other employees of North Star, according to the Office of the Idaho Attorney General.

“When the Legislature gives my office authority to investigate fraud, we get results,” Attorney General Raul Labrador said in a statement. “This defendant stole $154,000 by billing for services never provided to children with disabilities. We recovered every dollar and will continue pursuing anyone who defrauds Idaho’s Medicaid program.”

Having opened in 2006, North Star Child Development Center provides preschool and child care services for children with developmental disabilities.

“Our mission is to help children of all abilities achieve their maximum potential by using research based educational programs to address difficulties with behavioral management, language, social play, self-help, and academic skills in an inclusive setting,” the organization’s website reads.

After pleading guilty as part of a plea deal, Hofius was sentenced to three years of supervised probation. She was also ordered to pay back the more than $154,000 taken from the Idaho Medicaid program while paying court fees and a $1,000 fine.

Hofius will complete 45 days of labor for the Kootenai County Sheriff’s Community Labor Program and complete 120 hours of community service. Her license as a Medicaid provider has been suspended.

North Star Child Development Center declined to comment on the sentencing and did not answer whether Hofius was still employed there. Tax filings from 2023 still listed her as the executive director of the nonprofit.