LINCOLN — Advocates for children are raising concerns about a state effort to use Social Security payments owed to foster kids to help defray the costs of foster care — a practice state officials say is completely legal. Since 2009, Nebraska has paid a Virginia company, Maximus Health Services, to research which of the state’s 4,000 foster children might be eligible for Social Security, either due to a physical or mental disability or due to losing a parent, and then go after those benefits.
Over the past three years, the effort has captured about $2.7 million a year in Social Security benefits, which has been used to reimburse state expenses for foster care. The state spent $130 million on all child welfare services in fiscal year 2019-20, which includes both out-of-home care, like foster care, and in-home services.
The state last year signed a $301,500 contract with Maximus to continue finding Social Security benefits through September of 2023. The company has been providing similar services to the State of Iowa since 2004.
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