What's happening
This bill creates a board and fund to reward people who report tips leading to Medicaid fraud convictions.
Why it matters
Creates a formal process and oversight board for rewarding individuals who report Medicaid fraud. , which may encourage more whistleblowers—including healthcare workers, administrators, and the general public—across New York State to come forward with information.
Designates a portion (1–2%) of all Medicaid fraud recoveries to fund these rewards. , meaning that the financial incentives for tipsters are directly tied to the amount the state successfully recovers, potentially increasing both reporting and state revenue.
Requires the board to protect the anonymity and personal information of tipsters. , which could make it safer and more appealing for people to report fraud without fear of retaliation, impacting the culture of accountability in New York’s healthcare system.
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Who cares
Medicaid Recipients and Taxpayers
Those who rely on Medicaid and all taxpayers have a direct interest in reducing fraud, as it preserves resources for legitimate beneficiaries and ensures public funds are used appropriately.
Whistleblowers and Potential Tipsters
Individuals who may have information about Medicaid fraud now have a financial incentive and new protections for anonymity, making it safer and more appealing to come forward.
Healthcare Providers and Entities
Legitimate providers are stakeholders because increased fraud detection may impact their operations through heightened scrutiny, while also helping to eliminate unfair competition from fraudulent actors.
Law Enforcement and Regulatory Agencies
Agencies responsible for investigating and prosecuting Medicaid fraud care about this bill as it could provide them with more leads, resources, and collaboration opportunities to enhance enforcement efforts.
Headline styles
Reward Medicaid Fraud Whistleblowers
Plain English, a few words. Used as the page title.
Sponsors
History
- Referred to health
Companion bill
The same bill in the other chamber. A bill becomes law when one version passes both houses and the governor signs it, so either number can carry it.
Reward Medicaid Fraud Tips
In Senate Committee · Rules · Sponsor Dean Murray
Full text
2 pagesUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
11730
IN ASSEMBLY
September 16, 2026
Introduced by COMMITTEE ON RULES -- (at request of M. of A. DeStefano) -- read once and referred to the Committee on Health
AN ACT to amend the public health law and the state finance law, in relation to establishing a Medicaid fraud tip board and Medicaid fraud tip reward fund
The People of the State of New York, represented in Senate and Assembly, do enact as follows:
Section 1. The public health law is amended by adding a new section 37 to read as follows:
§ 37. Medicaid fraud tip board. 1. For the purposes of this section, "Medicaid fraud" shall mean the knowing commission of any crime with intent to illegally receive benefits, or reimbursement from the medical assistance for needy persons program established and administered pursuant to this chapter, the social services law and federal law.
2. There is hereby established the Medicaid fraud tip board for the purpose of developing and administering a system to offer monetary rewards to individuals whose documented tips have resulted in the closing of a Medicaid fraud case and a guilty plea or criminal conviction against a person or entity that is engaging in, or has engaged in, Medicaid fraud.
3. The board shall consist of seven members to be appointed as follows: two appointed by the governor; one appointed by the lieutenant governor; one appointed by the majority leader of the senate; one appointed by the speaker of the assembly; one appointed by the minority leader of the senate; and one appointed by the minority leader of the assembly.
4. Meetings of the board shall be held at least twice a year but may be held more frequently as deemed necessary. At each meeting, the board shall review pending reward applications and determine reward eligibility and amount, if applicable.
5. The board shall:
(a) develop and adopt guidelines used to determine whether an individual is eligible to receive a reward;
(b) establish minimum and maximum reward payment amounts; and
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD16284-01-6
(c) establish procedures to preserve the anonymity of any individual alleging Medicaid fraud, which shall include, but not be limited to, the protection of any personally identifying information and banking information.
6. Rewards approved by the board pursuant to this section shall be paid from the Medicaid fraud tip reward fund established in section ninety-seven-bbbbb of the state finance law.
§ 2. The state finance law is amended by adding a new section 97-bbbbb to read as follows:
§ 97-bbbbb. Medicaid fraud tip reward fund. 1. There is hereby established, in the joint custody of the comptroller and the commissioner of taxation and finance a fund to be known as the Medicaid fraud tip reward fund.
2. Such fund shall consist of not less than one percent nor more than two percent of all moneys recovered by the state through Medicaid fraud enforcement, including but not limited to, through civil forfeiture or a court's award of restitution, and all other moneys appropriated, credited or transferred thereto from any other fund or source pursuant to law.
3. Moneys of the Medicaid fraud tip reward fund shall be solely available for the payment of eligible individuals in accordance with determinations made by the Medicaid fraud tip review board pursuant to section thirty-seven of the public health law.
4. Moneys in the Medicaid fraud tip reward fund shall be kept separate from and shall not be commingled with any other moneys in the custody of the comptroller or the commissioner of taxation and finance.
§ 3. This act shall take effect on the ninetieth day after it shall have become a law. Effective immediately, the addition, amendment and/or repeal of any rule or regulation necessary for the implementation of this act on its effective date are authorized to be made and completed on or before such effective date.
Reflowed for reading: line numbers and page breaks removed. Cite the official text.
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.