Provides that a portion of the non-federal share of any recovery of fraudulent medicaid payments shall be made to the prosecuting district attorney's office

BILL NUMBER:S5631

Title of bill

An act to amend the executive law, in relation to the disposition of moneys received as a result of the prosecution of medicaid fraud offenses by local district attorneys

Purpose

To distribute any recoveries of Medicaid funds allocated due to misrepresentations of proper eligibility or services if a local District Attorney's office is involved in the preparation or prosecution of actions leading to the recovery of such funds. In these cases, the State would retain 70 percent of recovery funds, and the District Attorney office shall receive the remaining 30 percent of Medicaid fraud recoveries.

Summary of provisions

Section 1 of the bill amends the executive law Section 80 to define Medicaid fraud for the purposes of this article. It would apportion any funds received from fraudulent Medicaid actions where a District Attorney's office participates in the gathering of information and evidence resulting in a court awarded restitution or civil forfeiture to be allocated according to a ratio of twenty-five percent to such district attorney's office, and the balance to the State.

Existing law

Currently all such Medicaid fraud recovery funds remain with the State.

Justification

Often, the most effective way to recover misappropriated Medicaid funds is to have the relevant District Attorney for said county actively participate in the evidentiary and prosecutorial phases of developing a Medicaid fraud case. However, there is little incentive for such District Attorney's offices to aggressively pursue such actions, since Medicaid fraud is often not the highest priority for these overburdened departments despite the overriding state interest in preventing and prosecuting fraud in the state's primary health program for its citizens. This bill would provide a substantial inducement for the District Attorney for each county in the State to more forcefully root out individuals and organizations that seek to overburden the taxpayers of the State through the submission of deceitful claims and services.

Legislative history

New bill.

Fiscal implications

Additional fraud recovery funds to be shared with local offices.

Local fiscal implications

Increased funding for District Attorney offices operations.

Effective date

Immediately.