OIG recovers fraudulent benefits payments

The OIG Benefits Program Integrity (BPI) unit investigates allegations of overpayments to clients participating in Medicaid, CHIP, SNAP, TANF and WIC.

Fraud referrals to BPI have increased in the past year due to the increased volume of benefits applications and recipients resulting from the pandemic. In the first quarter of fiscal year 2022, BPI completed investigations of 4,385 cases, referring eight investigations for prosecution and 141 investigations for administrative disqualification hearings. BPI recovered $9,880,512 in fraudulent benefits claims.

A sample of cases recently worked by BPI:

BPI investigated a client in Harrison County who committed an intentional program violation by concealing the father of her children and his associated income as part of their household on benefits applications from December 2016 to January 2020. During the investigation, the investigator obtained witness statements and evidence that proved the father was living in the home and receiving income. The client waived her rights to an administrative hearing to contest the findings. In September, the client was disqualified from SNAP for 12 months and ordered to pay back $36,453 in SNAP benefits and $2,158 in TANF benefits.

In November, BPI resolved a case in Bexar County where a client committed fraud by failing to report her children’s father and his associated income as part of her benefits applications for SNAP. From March 2019 to February 2021, the client received a total of $24,011 in excess SNAP benefits. After being presented with the evidence proving the father and his income should have been reported on the applications, the client signed a Waiver of Disqualification Hearing, agreeing to pay $24,011. They are disqualified from the SNAP program for 12 months.

To learn more about the Supplemental Nutrition Assistance Program, visit this SNAP Program Guide.