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CONTACT: Stephanie Smiley, (608)
266-1683
DEPARTMENT PURSUES VENDOR FRAUD ENFORCEMENT AUTHORITY FOR PUBLIC
ASSISTANCE PROGRAMS
MADISON—Secretary Dennis G. Smith and Inspector General Alan White
today called on the federal government to allow Wisconsin to take the lead
in pursuing Supplemental Nutrition Assistance Program (SNAP) vendor fraud
cases, in a letter to Tim English, SNAP regional administrator.
SNAP provides food assistance funding to states, which administer the
application and benefit distribution process locally. In Wisconsin, the
program is called FoodShare (formerly Food Stamps). States can pursue
individuals enrolled in FoodShare who commit fraud, but only the federal
government can investigate and prosecute vendors in the state who defraud
the SNAP system. Wisconsin already conducts vendor fraud investigations
for the Women, Infants and Children (WIC) supplemental food program and
Medicaid.
“The current system that requires the federal government to pursue
vendor fraud while states are only allowed to pursue member fraud is
disjointed, inefficient and ineffective,” said Smith. “State officials
who administer the SNAP program should have the tools and authority to
pursue vendors who are defrauding the program. This would ensure that
taxpayer dollars are used efficiently and appropriately while protecting
FoodShare members at risk of being victimized by unscrupulous vendors.”
The Department of Health Services (DHS) manages many of the state’s
largest public assistance programs, including Medicaid, FoodShare and WIC.
A new Office of the Inspector General (OIG) within DHS was created last
October by Governor Walker to consolidate and improve program integrity
and fraud prevention efforts. The 2011-12 biennial budget includes funding
to support this work.
“The OIG has identified areas where we must improve collaboration
between state and federal agencies so that we can ensure program
integrity,” White said. “We are asking the federal government to act
as a true partner with Wisconsin by allowing us to pursue a comprehensive
effort that would most effectively protect taxpayers as well as
individuals who need the FoodShare program.”
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Last Revised: January 20, 2012
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