For Immediate Release
January 29, 2025
Media Contact: Damon Sidur
BOISE, ID — Attorney General Raúl Labrador has announced that Tracy Hofius, 49, was sentenced January 21, 2026, for Public Assistance Provider Fraud. Public Assistance Provider Fraud is a felony currently punishable by up to 15 years in prison, though at the time of Hofius’ fraudulent conduct in 2022 and 2023, the penalty was 5 years in prison.
Hofius was the Executive Director of North Star Child Development Center, a non-profit that provides developmental disability services to Idaho Medicaid participants. Medicaid fraud investigators determined that Hofius executed a scheme to wrongfully obtain Medicaid funds by fraudulently adjusting and submitting incorrect information to the Idaho Department of Health and Welfare for reimbursement from the Medicaid program. Investigators found that many of the services Medicaid paid for were not actually provided by Hofius or any other employees of North Star. She pled guilty on November 18, 2025.
“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.”
Judge Barry McHugh placed Hofius on supervised probation for three years and ordered her to pay $154,119 in restitution to the Idaho Medicaid program. Hofius was also ordered to pay court costs and a fine of $1000.00. Judge McHugh also ordered Hofius to perform 45 days of labor for the Kootenai County Sheriff’s Community Labor Program and complete 120 hours of community service. Hofius’ guilty plea also allows the Federal Department of Health and Human Services to suspend her credentials as a Medicaid provider.
The matter was investigated and prosecuted by personnel from the Attorney General’s Medicaid Fraud Control Unit. The Medicaid Fraud Control Unit receives 75 percent of its funding from the U.S. Department of Health and Human Services under a grant award totaling $1,105,525.00 for Federal fiscal year (FY) 2026. The remaining 25 percent, totaling $368,508.33 for FY 2026, is funded by the State of Idaho.
About Raúl Labrador
Raúl Labrador is the 33rd Attorney General of Idaho. The Office of the Attorney General provides legal representation for the State of Idaho. This representation is furnished to state agencies, offices and boards in the furtherance of the state's legal interests. The office is part of state government’s executive branch and its duties are laid out in the Idaho Constitution.
