Nebraska is one of 10 states — and the only one led by Republicans — included in a congressional investigation into possible Medicaid fraud.
The U.S. House Committee on Energy and Commerce announced the expanded investigation last week, citing reports and law enforcement actions that have indicated high levels of Medicaid fraud.
The other states included in the probe are California, Colorado, Massachusetts, Maine, New York, Pennsylvania, Vermont and Washington.
A letter sent March 3 to Nebraska Gov. Jim Pillen and Department of Health and Human Services CEO Steve Corsi requested detailed information about the state’s investigative procedures, previous improper payments, recovery efforts and both past and current audits. The committee asked the state to submit written responses and documentation by March 17.
Jeff Powell, communications director for the Department of Health and Human Services, said the agency received the letter and is preparing a response. He said the department “maintains multiple layers of fiscal and programmatic safeguards designed to protect taxpayer dollars, including rigorous oversight, auditing and enforcement measures.”
The letter specifically mentioned Nebraska’s sharp increase in spending on applied behavioral analysis, or ABA, services — a therapy commonly used for children with autism. From 2020 to 2024, Nebraska experienced nearly a 1,800% increase in Medicaid spending for ABA services. In 2024, the state spent about $85 million on the therapy for more than 1,500 families.
Since then, Nebraska has reduced ABA reimbursement rates to align with surrounding states, a move expected to lower overall spending. However, the congressional letter referenced a September audit report that identified issues in the ABA program, including duplicate invoices, missing documentation and providers lacking proper credentials.
The letter also pointed to several Medicaid fraud cases in Nebraska in recent years. One example involved an Omaha personal assistance provider who was convicted of billing Medicaid for services she never performed. Another involved a Lincoln therapist who was found guilty of submitting false Medicaid claims.
The investigation follows allegations of widespread fraud in Minnesota, which prompted the federal government to withhold Medicaid funding from that state and increased scrutiny of Minnesota Gov. Tim Walz.
In a statement, Pillen said he immediately directed the Department of Health and Human Services to conduct an internal review to ensure similar fraud is not occurring in Nebraska after the Minnesota situation became public.
Nearly 350,000 Nebraskans are enrolled in Medicaid, and about half of them are children, according to the health research nonprofit KFF. The federal government covers roughly 70% of the program’s total cost.
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