The U.S. Department of Health and Human Services is auditing all 50 states as officials examine potential fraud tied to autism treatment billing following a sharp rise in taxpayer-funded spending on autism services.

Fox News anchor Bill Hemmer introduced the issue during an exchange with Alexandria Hoff, pointing to a major spike in autism treatment spending in North Carolina.

“Now we'll audit all 50 American states looking for potentially massive fraud in the billing of autism treatment. This is happening now amid a recent explosion in spending on autism services. North Carolina alone apparently saw an 11,000% increase in the last four years. Why was that good question for Alexandria Hoff, live in DC. Alex, hello. Good morning,” Hemmer said.

Hoff said the data from North Carolina shows taxpayer-funded autism services increasing far faster than diagnoses among children, raising questions about the billing behind the spending.

Here's What They're Not Telling You About Your Retirement

“Hey, Bill. Yeah, it is a good question, because according to that data coming out of North Carolina, the use of taxpayer-funded autism services is significantly outpacing the number of children being diagnosed, so something's not right there, and it's not just in the Tar Heel state,” Hoff said.

Hoff said the issue extends beyond North Carolina. She cited a recent Cato Institute analysis that found Medicaid billing for applied behavior analysis therapy, known as ABA therapy, has surged in states that publicly report spending data.

“A recent analysis by the Cato Institute found that in five years, Medicaid billing has surged in every other state that makes their data public for money spent on ABA therapy, it's applied behavior analysis, that's what it's called. For reference, Minnesota's ABA spending increased by about 51,000% since 2018 We all know what happened there. President Trump spoke on that yesterday,” Hoff said.

President Donald Trump addressed the issue in a video clip aired during the segment.

This Could Be the Most Important Video Gun Owners Watch All Year

“You saw that with millions of dollars just being stolen, everybody had autism. Everybody had autism. They said it was incredible, actually. And I really, I mean, I've just seen somebody see what they're doing. You haven't seen anything yet,” Trump said.

Hoff said the review does not mean wrongdoing has been proven everywhere. She noted that ABA therapy is considered an important resource for children diagnosed with autism, while also pointing to factors that can make the billing system vulnerable to abuse.

“You know, it's not necessarily malice everywhere, that hasn't been proven yet. ABA therapy is considered a critical resource for children diagnosed with autism, but given its complicated billing structure, incentive to over bill, an influx of private equity-backed providers into that space, it's really being looked at like a gold rush,” Hoff said.

Hoff said audits by the HHS Office of Inspector General have already identified large amounts of questionable spending in a limited number of states.

“Audit so far by HHS Office of Inspector Generals uncovered $198 million in improper payments made in just four states, $410 million incorrectly billed, and examining this really depends on each state's ability to organize and analyze its own spending,” Hoff said.

HHS is now using artificial intelligence tools to strengthen oversight and help identify possible fraud across state programs.

“That's why HHS is now deploying AI tools to double check that oversight and try to root out any possible fraud,” Hoff said.

WATCH:

Doing Something About It: Louisiana US Senate Primary | The Rob Maness Show EP 672