Tribes warned about misspending of federal health care money


The Winnebago Service Unit on the Winnebago Reservation in Nebraska. Photo from Indian Health Service

The Office of Inspector General at the Department of Health and Human Services has issued a warning to tribes about the misuse of federal health care funds.

In a November 24 alert, the OIG said it has conducted investigations that uncovered misspending. None of the affected tribes or tribal organizations were identified but agents are worried that the money isn't being used to provide health care in Indian Country.

"In the most egregious cases, funds were converted to personal use, leaving the tribes with dangerous shortages in health care funding for its members," the alert stated.

Gerald Roy, a special agent at OIG, followed up in an interview with The Sioux Falls Argus Leader. He pointed out that tribal officials and employees in Montana and South Dakota have been indicted and convicted for musing federal funds.

"Most of those people who have given us the most pushback are either in jail or headed to jail," Roy told the paper.

The alert was directed at tribes that enter into contracts with the Indian Health Service under the Indian Self-Determination and Education Assistance Act. Tribes that receive Medicare, Medicaid, and Children’s Health Insurance Program funds must ensure they are being used properly, it stated.

"Recent OIG investigations have uncovered instances in which tribes used ISDEAA funds to support unauthorized activities. In some cases, shared costs were not allocated correctly between IHS and other activities," the alert said. "In others, ISDEAA funds were 'borrowed' to meet other tribal expenses."

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Feds warn tribes over misusing tax dollars (The Sioux Falls Argus Leader 12/7)

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