Legislative panel reviews DPHHS Office of Inspector General budget, oversight work and fraud recovery

The Section B Committee on Thursday heard a budget presentation and program overview from the Montana Department of Public Health and Human Services Office of Inspector General (OIG), which requested a modest increase in its biennial budget and highlighted program work ranging from certification surveys to Medicaid third‑party liability recoveries.

The inspector general, Michelle Truax, told the committee the OIG “is administratively attached to DPHHS” but operates separately to preserve survey and enforcement integrity. The OIG described three bureaus—Certification, Licensure and Program Compliance—and a program support section that manages federal grants and community needs assessments.

The Legislative Fiscal Division analyst presenting the budget, Mr. Secrest, told the committee that the OIG’s request reflects a 4.7% increase from the 2025 base into the 2026–27 biennium, including an 8.2% rise in personal services and a 5.7% reduction in operating expenses. He said, “the entire appropriation for OIG is HB 2 authority,” and that the OIG’s funding mix in the request is roughly 27.8% general fund, 10.4% state special and 61.8% federal funds.

Why it matters: the OIG regulates and certifies hundreds of health and residential facilities; it also runs program‑compliance units that aim to prevent fraud and recover Medicaid dollars. During fiscal 2024 the division expended 96.9% of its appropriation overall; it…