Florence, Ala. | Saturday, May 25, 2013
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State Medicaid fraud bill targets providers as well as recipients
By Bob Johnson
Associated Press

MONTGOMERY — The Alabama House has approved a bill aimed at cutting down on fraud and abuse in the state's Medicaid program.

The sponsor, Republican Rep. Jim McClendon of Springville, said the bill is needed to protect a program that exists to provide essential health care to the neediest citizens.

The bill was approved by the House on Thursday by a unanimous 99-0 vote. However, debate lasted for about three hours as some members, mostly Democrats, worked to make sure the measure could not be used to deny Medicaid services to legitimate applicants.

The bill is part of efforts to improve the state's Medicaid program. The measure was also a top priority for Republican leaders.

The legislation is aimed at not just individuals who defraud Medicaid by submitting false claims, but also doctors and corporations that commit Medicaid fraud.

The legislation is supported by Gov. Robert Bentley and Attorney General Luther Strange.

"Abusers of the Medicaid Agency need to know that we are aggressively targeting their crimes, we will catch them red-handed and we will punish them severely," McClendon said.

Medicaid providers who violate the law, if approved by the Senate and signed by the governor, would be prevented from participating in the program for three years.

The bill would expand the statute of limitations for prosecution of anyone committing Medicaid fraud from three to six years. That means that prosecutors could file charges within six years of the time the crime was committed, instead of only three.

The bill calls for Medicaid investigators to be given access to the Department of Public Health's controlled substance prescription database to help pinpoint instances of fraud and abuse by Medicaid providers and benefit recipients. It also sets aside $250,000 for the attorney general's Medicaid fraud control unit and $1 million for the Alabama Medicaid Agency for the fiscal year ending Sept. 30, 2014.

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