BOISE, Idaho – The former executive director of Idaho-based North Star Child Development Center pleaded guilty to fraudulently taking Medicaid funds and was sentenced on January 21 to make repayments, serve probation and perform work hours.
49-year-old Tracy Hofius was accused of committing fraud during 2022 and 2023. During that time, she worked with the North Star Child Development Center, a non-profit that provides developmental disability services to people who use Medicaid in Idaho.
She pleaded guilty to adjusting and submitting incorrect information to the Idaho Department of Health and Welfare, leading to higher reimbursements from the Medicaid program.
She submitted her guilty plea on November 18, 2025.
Her supervised probation will last for three years, according to a release from Idaho attorney general Raul Labrador.
She was also sentenced to pay back $154,119 to the Idaho Medicaid program, to perform 45 days of labor for the Kootenai County Sheriff’s Community Labor Program and to 120 hours of community service. She is also required to pay court costs and a fine of $1000.
The Federal Department of Health and Human services is also allowed to suspend her credentials as a Medicaid provider, due to her guilty plea.
“When the Legislature gives my office authority to investigate fraud, we get results,” said Attorney General Labrador. “This defendant stole $154,000 by billing for services never provided to children with disabilities. We recovered every dollar and will continue pursuing anyone who defrauds Idaho’s Medicaid program.”
The investigation and prosecution was led by the Attorney General’s Medicaid Fraud Control Unit, which receives 75% of its funding from the U.S. Department of Health and Human Services.
