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July 1, 2026

198 Provider Sanctions

Overpayments A provider overpayment occurs when a provider receives subsidy funds while they are out of compliance with Wisconsin Shares, licensing, certification, or YoungStar policies.

The department must take all reasonable steps necessary to recover provider overpayments after discovery.

To calculate a provider overpayment, agency workers must: • Identify the violation • Determine the overpayment period • Verify funds have not already been recovered from the client for the same time period • Verify that subsidy funds have been paid to a provider

Forfeitures Forfeitures may be imposed on a provider if the provider intentionally or egregiously violates a provision of Wis. Admin. Codes.

The forfeiture amount is based on a progressive enforcement system of first, second, and third violations. If the violation is considered a serious violation, the forfeiture may be from $100 - $10,000.

Serious Violations include: • A provider is found to be in possession of a photocopy, photo, or other image of a parent’s EBT card • A provider is found to be in possession of a parent’s subsidy account number or PIN • A provider fails to notify the local agency that a child who receives subsidy to attend their center has not attended within the previous 30 calendar days

Violation Occurrence Serious Not Serious First Violation Provider is issued a forfeiture of $100 for each violation. Department provides a signed Technical Assistance Letter regarding the issue(s) to ensure the provider understands all program requirements.