Tens of thousands of Medicaid recipients in New Mexico are not receiving their health benefits on time, according to numbers from state government. As of February of this year, more than 48,000 Medicaid cases up for renewal are not being processed by the state Human Services Department (HSD) on time, according to a federal court filing in April citing HSD’s own numbers. And that number of Medicaid renewal delays has only grown to more than 59,000 as of May 10, according to Maria Griego, a staff attorney with the New Mexico Center on Law and Poverty. “They’re pretty bad,” Griego said of the delays. While the number of New Mexicans who haven’t received their Medicaid benefits on time has been expanding, HSD erased a large part of the backlog of renewal applications for the federal Supplemental Assistance Nutrition Program (SNAP), formerly known as food stamps.
Not all people who apply for food aid in New Mexico qualify, but that hasn’t always stopped the state Human Services Department from sometimes giving them benefits. The state then sometimes attempted to get the recipients to repay the benefits from the federal Supplemental Nutrition Assistance Program, formerly known as food stamps. Oftentimes, collections came weeks or even months after the state disbursed the food aid. But last month, the U.S. Department of Agriculture, which manages SNAP, told the state not so fast on those collection plans. Now, after a back-and-forth with the federal government, the state will stop trying to collect these types of SNAP overpayments.
A federal agency said the state Human Services Department should stop attempting to recoup money from food aid beneficiaries who the state may have given more money than they were supposed to. Last week, an administrator for the U.S. Department of Agriculture Food and Nutrition Services requested, in a letter, that the state department “immediately cease” collecting overpayments from New Mexicans who received extra benefits through the federal Supplemental Nutrition Assistance Program, formerly known as food stamps. The letter, written by USDA FNS Southwest Administrator William Ludwig to HSD Secretary Brent Earnest, comes two months after the same federal agency threatened to pull money from the department after finding eight violations of federal law in its processing of food aid and Medicaid. Ludwig alludes to those eight violations—which included keeping pending SNAP applications open for more than the allotted 60 days, approving benefits without interviewing or determining a person’s SNAP eligibility and failing to keep accurate records of clients—in his latest letter to Earnest. Ludwig also wrote his agency reviewed some of the state’s processed SNAP cases and found that HSD wouldn’t have sought overpayments from beneficiaries if it had followed proper procedures.
Attorneys for the Center on Law and Poverty are asking a federal court to unseal an internal state investigation into allegations of fraud in processing and falsely denying food benefits applications. In a motion filed today, the Center’s attorneys argued that the public’s “significant interest” in the matter outweighs the state’s arguments to keep the report on Supplemental Nutrition Assistance Program applications secret. “The Court’s actions in this case are of great public concern, as New Mexico has one of the highests rates of hunger in the United States,” the Center’s attorneys wrote. “The public this has an especially strong interest in having access to documents the Court uses to inform its decision affecting the class of food assistance applicants.”
The state Human Services Department was rocked in recent months after employees said they were instructed to add fake assets to emergency applications for SNAP, formerly known as food stamps, so applicants wouldn’t be eligible for the emergency benefits. Applicants seeking emergency SNAP benefits must face extreme levels of poverty to qualify.
An official who pleaded her Fifth Amendment rights in court over widespread allegations of fraud in how the state administers the federal Supplemental Nutrition Assistance Program will take charge of a large portion of the state’s corrective action plan to fix many of the program’s problems outlined by the federal government. In May, Marilyn Martinez, the state Human Services Department’s director of the Income Support Division, appeared as a witness in federal court and refused to answer 39 questions from attorneys with the Center on Law and Poverty. Many of these questions centered on Martinez’s role in the alleged institutional practice of adding fake assets to emergency applications to deny benefits to people seeking aid from the program formerly known as food stamps. “Why did you think it was appropriate to be adding assets to case files in order to bar people from being approved for expedited SNAP?” attorney Daniel Yohalem* asked Martinez during her testimony. “I’m invoking my Fifth Amendment right,” Martinez responded.
The federal government placed state Human Services Department on a “detailed corrective action plan,” mandating it correct its many problems with administering the Supplemental Assistance Nutrition Program (SNAP), the food benefits program formerly known as food stamps. In a May 27 letter to HSD Secretary Brent Earnest, U.S. Department of Agriculture Food and Nutrition Service Southwest Regional Administrator William Ludwig warned that failure to submit a plan “within 14 days of receipt of this letter” could lead to “further escalation.”
The potential fallout for New Mexico, according to the letter, includes “the possible suspension or disallowance of Federal funding for State administrative expenses.”
“It is imperative that HSD understand the severity and consequences outlined in this letter,” Ludwig wrote. On the surface, Ludwig’s letter faults HSD for giving SNAP benefits to people that it shouldn’t be. He details eight “severe compliance issues” where HSD broke federal regulations in its processing of SNAP applications. They include the department’s practice of keeping pending SNAP applications open for more than the required 60 days, approving applications without interviewing or determining a person’s eligibility for SNAP and failing to keep accurate records of clients.
This month’s federal court hearing regarding ongoing claims by Human Services Department employees of widespread fraud within the department was notable for another reason besides three high state officials invoking their Fifth Amendment rights nearly 100 times. One former employee testified the department’s practice of adding fake assets to emergency food stamp applications in order to fix the department’s backlog of late applications for the Supplemental Nutrition Assistance Program came directly from the department’s top brass. Shar Lynne Louis, a former employee at HSD’s Income Support Division (ISD) in Gallup who retired last summer, was one of nine current and former employees who gave testimony in the case over two hearings. Louis said she often reviewed the state’s policies and procedures and could never find anything in them justify adding fake assets. So she asked her superiors.