BOISE, ID — A Kootenai County woman has been sentenced in a public assistance provider fraud case involving Idaho’s Medicaid program, according to the Idaho Attorney General’s Office.

Attorney General Raúl Labrador announced that 49-year-old Tracy Hofius was sentenced on Jan. 21 after pleading guilty to felony public assistance provider fraud. Hofius served as executive director of North Star Child Development Center, a nonprofit that provided developmental disability services to Medicaid participants.

According to investigators, Hofius carried out a scheme during 2022 and 2023 in which incorrect information was submitted to the Idaho Department of Health and Welfare for Medicaid reimbursement. The investigation determined that many services billed to Medicaid were not actually provided by Hofius or other employees. Hofius pleaded guilty on Nov. 18, 2025.

Court records show Hofius was ordered to pay $154,119 in restitution to the Idaho Medicaid program. Judge Barry McHugh also sentenced her to three years of supervised probation, imposed a $1,000 fine, and ordered payment of court costs. Hofius must complete 45 days of labor through the Kootenai County Sheriff’s Community Labor Program and 120 hours of community service.

The felony charge is currently punishable by up to 15 years in prison, though the maximum penalty at the time of the offenses was five years.

The case was investigated and prosecuted by the Attorney General’s Medicaid Fraud Control Unit. Hofius’ guilty plea also allows the U.S. Department of Health and Human Services to suspend her credentials as a Medicaid provider.

The Medicaid Fraud Control Unit receives 75 percent of its funding from the U.S. Department of Health and Human Services, with the remaining 25 percent funded by the State of Idaho.