Convicted of health care fraud, Iowa counselor retains her state license

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After being convicted of defrauding taxpayers through false Medicaid billings, an Iowa woman is being allowed to keep her state license as a mental health counselor.

Federal records indicate Kate Cross, the owner of Cross Therapy Center in Council Bluffs, provides patients with counseling, psychotherapy and other services that are billed to Medicaid.

In July 2023, federal prosecutors charged Cross with health care fraud, alleging she had defrauded Medicaid by “upcoding” services, in part by deliberately overstating the length of telemedicine psychotherapy visits to collect a higher rate of reimbursement from Medicaid.

Prosecutors also alleged Cross had collected $14,000 from Medicaid for services that were not provided as billed.

In June 2024, Cross agreed to a plea deal that called for a recommended sentence of 24 months of probation. Later that month, she was sentenced to two years of probation, fined $9,500 and ordered to pay $11,255 in restitution.

One year later, in June 2025, the Iowa Board of Behavioral Health Professionals, citing Cross’ 2024 conviction, charged her with failing to comply with the American Counseling Association’s code of ethics by submitting false reports to third parties.

To resolve the case without resorting to a hearing, the board recently agreed to a settlement that calls for Cross to retain her license to practice in Iowa subject to three years of probation, during which time she must engage a practice monitor to ensure she is complying with appropriate billing practices.

She is also required to complete six hours of training in ethics and pay a $250 civil penalty.

The Iowa Capital Dispatch was unable to immediately reach Cross for comment on Monday.