Sickening and Fascinating At the Same Time...

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  • Heidi
    Daycare.com Member
    • Sep 2011
    • 7121

    Sickening and Fascinating At the Same Time...

    This is a list of providers who have allegedly committed fraud against WI SHARES (state childcare subsidy). I found one who bilked the system over $100K.



    There are a few that were obviously providers untrained who did not know the correct way to bill. Too bad they got lumped in with the real criminals.
  • Play Care
    Daycare.com Member
    • Dec 2012
    • 6642

    #2
    Originally posted by Heidi
    This is a list of providers who have allegedly committed fraud against WI SHARES (state childcare subsidy). I found one who bilked the system over $100K.



    There are a few that were obviously providers untrained who did not know the correct way to bill. Too bad they got lumped in with the real criminals.
    How does that happen?! I remember when I was first starting out they did a sting and a bunch of local child care providers were arrested, but then never heard anything else about it. I assume most got the charges dismissed.

    Comment

    • butterfly
      Daycare.com Member
      • Nov 2012
      • 1627

      #3
      Yikes! I don't get being dishonest to make a buck. I couldn't live with the guilt. Plus it seems to catch up with you sooner or later.

      Comment

      • Heidi
        Daycare.com Member
        • Sep 2011
        • 7121

        #4
        Okay...there are a few variations, but here is the general scenario:

        We are both low-income moms with multiple children. Mom #1 opens a daycare, and hires mom #2 (and 3 and 4 and 5 and 15) to come work for her as a "teacher".

        The state pays for all those mom's childcare (minus a small co-pay) because they are still low income (because childcare workers make diddly). They pay the "going rate", which is lets say $5 per hour. The "teachers" make minimum wage or so.

        Then, the daycare enrolls all the children of all these moms, but doesn't actually need to children to attend or the mom's to work there. They just bill the state, collect the money, pay the moms their "wage", and pocket the difference.

        I am just not clever enough, I guess!

        Comment

        • daycarediva
          Daycare.com Member
          • Jul 2012
          • 11698

          #5
          Yet another reason I won't take state pay clients. One billing error and you're either underpaid or committing fraud. No thanks!

          Comment

          • Blackcat31
            • Oct 2010
            • 36124

            #6
            Originally posted by Heidi
            Okay...there are a few variations, but here is the general scenario:

            We are both low-income moms with multiple children. Mom #1 opens a daycare, and hires mom #2 (and 3 and 4 and 5 and 15) to come work for her as a "teacher".

            The state pays for all those mom's childcare (minus a small co-pay) because they are still low income (because childcare workers make diddly). They pay the "going rate", which is lets say $5 per hour. The "teachers" make minimum wage or so.

            Then, the daycare enrolls all the children of all these moms, but doesn't actually need to children to attend or the mom's to work there. They just bill the state, collect the money, pay the moms their "wage", and pocket the difference.

            I am just not clever enough, I guess!
            Since my state seems to follow a lot of what your state does.... I now know why they changed the rules here for Child Care Assistance...

            Our state will NO longer pay for care of children in centers/homes that the parent is working in. OS if Mom #1 worked at ABC child care, she could not use assistance for her child to attend there as well.

            Also our state stopped allowing RELATIVES (grand parents, sisters, aunts etc) to be paid to watch their related children.

            Also in MN if there is ever an overpayment made to a provider, the PARENT is the one charged for it NOT the provider so no matter what, we (the provider) get paid.

            We also get a 15 day minimum notice of ANY chance in a family's assistance AND if a family just up and leaves with no notice, we still get paid the final 2 weeks AND if a family doesn't pay their co-pay...the state will suspend their child care assistance ALL TOGETHER until they pay the provider IN FULL.

            Our state used to really be bad about assistance but not any more. Now the only reason I don't take assistance is because it is tied to the "potential" unionization of family child care providers and I REFUSE to be unionized or pay "fair share" dues.

            Comment

            • Heidi
              Daycare.com Member
              • Sep 2011
              • 7121

              #7
              Originally posted by Blackcat31
              Since my state seems to follow a lot of what your state does.... I now know why they changed the rules here for Child Care Assistance...

              Our state will NO longer pay for care of children in centers/homes that the parent is working in. OS if Mom #1 worked at ABC child care, she could not use assistance for her child to attend there as well.

              Also our state stopped allowing RELATIVES (grand parents, sisters, aunts etc) to be paid to watch their related children.

              Also in MN if there is ever an overpayment made to a provider, the PARENT is the one charged for it NOT the provider so no matter what, we (the provider) get paid.

              We also get a 15 day minimum notice of ANY chance in a family's assistance AND if a family just up and leaves with no notice, we still get paid the final 2 weeks AND if a family doesn't pay their co-pay...the state will suspend their child care assistance ALL TOGETHER until they pay the provider IN FULL.

              Our state used to really be bad about assistance but not any more. Now the only reason I don't take assistance is because it is tied to the "potential" unionization of family child care providers and I REFUSE to be unionized or pay "fair share" dues.
              We no longer get a 10 day notice, and no support on collecting co-pays. We have caseworkers who retroactively change authorizations, AFTER care has been provided. These changes are courtesy of Governor Walker. We all know Mr. Walker and the union are not playing in the same sandbox! In our case, the childcare union has tried valiantly to get them to reinstate notice periods and enrollment based pay. We do not, however, have forced unionization.

              The other changes you noted are definitely courtesy of Wisconsin after too many providers took advantage. But, if you are a daycare worker, it is now almost impossible to get any state assistance for childcare. They will not pay to have kids go to that center, and they will not pay for them to attend another center, because the turkeys that committed fraud got smart and started daycare "rings".

              Comment

              • Hunni Bee
                False Sense Of Authority
                • Feb 2011
                • 2397

                #8
                Originally posted by daycarediva
                Yet another reason I won't take state pay clients. One billing error and you're either underpaid or committing fraud. No thanks!
                Yes. I read a few of them, and it seemed that most of the providers on the list either had parents not sign their kids in/out or failed to keep completely accurate attendance records...

                Not an overly hard trap to fall into...

                Comment

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