Here is the situation:
The United States of America is based on a federalist structure, meaning states have autonomy and the federal government cannot tell states what to do. We, also, have the Eleventh Amendment, providing states with sovereign immunity.
In child welfare, there are these events called "audits". This is when the Regional Department of Health and Human Services Office, Administration for Children and Families sends down its team to conduct Social Security Act Title IV-B and E compliance reviews to see if states are properly administering the public money.
Every audit period, the Administration for Children and Families Region 5 has generated glowing reports for Michigan and the state basques in the federal radiance of operating an efficient and effective child welfare system. As soon as the federal report is published, the Michigan Auditor General comes along and contradicts everything Region 5 found.
Many, in shock and awe, may read this in disbelief and ask why there has been no action taken to stop the act of Medicaid fraud. The answer is that Medicaid compliance is not an item of review, for these audits are only for SSA Title IV-B and E. Besides, Medicaid fraud prevention and prosecution is the responsibility of the Attorney General, who does absolutely nothing because the Attorney General would have to self-prosecute. It is the question in its alternative form that is more interesting:
"Why is Region 5 finding Michigan to be SSA Title IV-E compliant?"
It's because they are all in this together. See, the administrators over at Region 5 in Chicago know they have not executed their fiduciary responsibilities to the best of their abilities.
Recently, the Region 5 Office of Civil Rights demanded response to investigation on disparities in adoption subsidies because, as the allegations point out, Michigan is providing for lower rates for adoptive minority children and denying special needs assistance to children under 2 years.
This practice only makes sense when viewed from a monetary perspective. The longer a minority and/or special needs child lingers in the state foster care system, the higher the levels of claims and the increase in frequency of fraudulent claims, for there is no one to even check. Once a child is adopted out, you have a dramatic shift in funding responsibilities for the state as the Federal Formula Percentage kicks in, leaving the state obligated to pay more out-of-pocket for the adopted minority and/or special needs child.
Then, you have Michigan Children's Institute, a pseudo-government agency, with an artificial Superintendent who was never appointed but possesses the power to grant consent in the courts while wielding the power to overrule the decision of another state. It should be noted that Michigan did shuffle and throw in new court rules to cover up one of its adoption scheme mentioned above.
Kate Hanley, Michigan Adoption Director was overheard before walking in to provide Senate testimony on the state adoption plan speaking to a few Senators "that it would be impossible for Michigan to come into federal Title IV-E compliance." It is more cost effective for the state to continue to receive a lower Federal Formula Percentage than to come into compliance. I wonder how it felt to flat out lie on public record? I would ask her but she never returns my calls or letters.
Michigan, being a state, can snub any federal mandate to compliance with Justice Maura Corrigan leading the immunity dance with her federal partner, Kent Wilcox.
So, it looks as if Michigan and Region 5 are going to continue its coital partnership, making everybody look good and continue the flow of revenue into the state. I am quite sure if anyone out of Region 5 was ever without a job, they could always work in Michigan government.
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