2006 Legislation
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HOUSE BILL NO. 668 – Medicaid fraud, atty general duty

HOUSE BILL NO. 668

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Bill Status



H0668.................................................by HEALTH AND WELFARE
MEDICAID FRAUD - Adds to existing law to provide for the investigation and
prosecution of Medicaid fraud by the Office of the Attorney General; to
provide for the adoption of procedures; to provide for the collection of
overpayments; to provide for the employment of necessary personnel; to
provide for reporting; to provide a definition; and to provide for
rulemaking authority.
                                                                        
02/13    House intro - 1st rdg - to printing
02/14    Rpt prt - to Health/Wel
03/13    Rpt out - rec d/p - to 2nd rdg
03/14    2nd rdg - to 3rd rdg
03/15    3rd rdg - PASSED - 62-0-8
      AYES -- Anderson, Andrus, Barraclough, Barrett, Bastian, Bayer,
      Bedke, Bell, Bilbao, Black, Block, Boe, Bolz, Brackett, Bradford,
      Cannon, Chadderdon, Collins, Deal, Denney, Edmunson, Eskridge,
      Field(18), Field(23), Garrett, Hart, Henbest, Henderson, Jaquet,
      Kemp, Lake, LeFavour, Loertscher, Martinez, Mathews, McGeachin,
      McKague, Miller, Mitchell, Moyle, Nielsen, Nonini, Pasley-Stuart,
      Pence, Raybould, Ringo, Roberts, Rusche, Rydalch, Sali, Schaefer,
      Shepherd(2), Shepherd(8), Shirley, Skippen, Smith(30), Smith(24),
      Smylie, Snodgrass, Stevenson, Trail, Wood
      NAYS -- None
      Absent and excused -- Clark, Crow, Ellsworth, Harwood, Ring, Sayler,
      Wills, Mr. Speaker
    Floor Sponsor - Mathews
    Title apvd - to Senate
03/16    Senate intro - 1st rdg - to Health/Wel

Bill Text


                                                                        
                                                                        
  ]]]]              LEGISLATURE OF THE STATE OF IDAHO             ]]]]
 Fifty-eighth Legislature                   Second Regular Session - 2006
                                                                        
                                                                        
                              IN THE HOUSE OF REPRESENTATIVES
                                                                        
                                     HOUSE BILL NO. 668
                                                                        
                              BY HEALTH AND WELFARE COMMITTEE
                                                                        
  1                                        AN ACT
  2    RELATING TO MEDICAID; AMENDING CHAPTER 14, TITLE 67, IDAHO CODE, BY THE  ADDI-
  3        TION  OF  A NEW SECTION 67-1404, IDAHO CODE, TO PROVIDE FOR THE INVESTIGA-
  4        TION AND PROSECUTION OF MEDICAID FRAUD BY THE OFFICE OF THE ATTORNEY  GEN-
  5        ERAL,  TO  PROVIDE FOR THE ADOPTION OF PROCEDURES, TO PROVIDE FOR THE COL-
  6        LECTION OF OVERPAYMENTS, TO PROVIDE FOR THE EMPLOYMENT OF  NECESSARY  PER-
  7        SONNEL,  TO  PROVIDE FOR REPORTING, TO PROVIDE A DEFINITION AND TO PROVIDE
  8        FOR RULEMAKING AUTHORITY; AND PROVIDING AN EFFECTIVE DATE.
                                                                        
  9    Be It Enacted by the Legislature of the State of Idaho:
                                                                        
 10        SECTION 1.  That Chapter 14, Title 67, Idaho Code, be,  and  the  same  is
 11    hereby  amended by the addition thereto of a NEW SECTION, to be known and des-
 12    ignated as Section 67-1404, Idaho Code, and to read as follows:
                                                                        
 13        67-1404.  DUTIES OF THE ATTORNEY GENERAL REGARDING MEDICAID FRAUD. (1) The
 14    office of the attorney general shall be responsible for conducting a statewide
 15    program for the investigation and prosecution of violations of all  applicable
 16    Idaho  laws  regarding  any  and  all  aspects of fraud in connection with any
 17    aspect of the provision of medical assistance pursuant  to  programs  adminis-
 18    tered  by  the department of health and welfare including, but not limited to,
 19    medical, dental, optical and mental health medical assistance, the transporta-
 20    tion, board and care services related to  such  medical  assistance,  and  the
 21    activities  of  providers  of  such medical  assistance and services. Further,
 22    upon approval of the inspector general of the  relevant  federal  agency,  the
 23    office  of the attorney general shall be responsible for the investigation and
 24    prosecutions of violations of any aspect of the provision of health care  ser-
 25    vices  and  activities  of providers of such services under any federal health
 26    care program as defined in 42 U.S.C. section 1320a-7b(f)(1), if the  suspected
 27    fraud  or  violation of law in such case or investigation is primarily related
 28    to the state plan under subchapter XIX, chapter 7, title 42 U.S.C.
 29        (2)  In order to carry out its responsibilities under  this  section,  the
 30    office of the attorney general shall adopt procedures for:
 31        (a)  Reviewing  complaints  of abuse or neglect of patients in health care
 32        facilities which receive payment under the  state  plan  under  subchapter
 33        XIX, chapter 7, title 42 U.S.C.;
 34        (b)  Reviewing  complaints  of  abuse  or  neglect of patients residing in
 35        board and care facilities; and
 36        (c)  Acting upon such complaints under the criminal laws of the  state  of
 37        Idaho or for referring such complaints to other state agencies for action.
 38        (3)  The  office  of  the attorney general shall collect overpayments that
 39    are made under the state plan or under any  federal  health  care  program  to
 40    health  care  facilities and that are discovered by the office of the attorney
 41    general in carrying out its responsibilities under  this  section.  All  funds
 42    collected  by  the office of the attorney general in accordance with this sub-
 43    section (3) shall be credited exclusively to, and  available  for  expenditure
                                                                        
                                           2
                                                                        
  1    under,  the  federal  health care program, including the state plan under sub-
  2    chapter XIX, chapter 7, title 42 U.S.C., that was subject to the activity that
  3    was the basis for the collection.
  4        (4)  The office of the attorney general shall employ such auditors, attor-
  5    neys, investigators and other personnel as are  necessary  to  carry  out  its
  6    responsibilities set forth under this section.
  7        (5)  The  office  of the attorney general shall submit to the secretary of
  8    the federal department of health and human services applications  and  reports
  9    containing such information as determined by the secretary by regulation to be
 10    necessary  to  meet  the  requirements  of subchapter XIX, chapter 7, title 42
 11    U.S.C.
 12        (6)  For the purpose of this section, "board and care  facility"  means  a
 13    residential  setting  which  receives  payment from or on behalf of two (2) or
 14    more unrelated adults who reside in such facility, and for  whom  one  (1)  or
 15    more of the following is provided:
 16        (a)  Nursing  care  services  provided  by, or under the supervision of, a
 17        registered nurse, licensed practical nurse or licensed nurse assistant.
 18        (b)  A substantial amount of personal care services that assist  residents
 19        with the activities of daily living, including personal hygiene, dressing,
 20        bathing,  eating,  toileting,  ambulation,  transfer,  positioning,  self-
 21        medication,  body  care,  travel  to medical services, essential shopping,
 22        meal preparation, laundry and housework.
 23    Provided however, the board and care facility must be a provider  of  medicaid
 24    services.
 25        (7)  The  attorney  general shall have the authority to adopt rules neces-
 26    sary to implement the responsibilities assigned to the office of the  attorney
 27    general under this section.
                                                                        
 28        SECTION  2.  This act shall be in full force and effect on and after Janu-
 29    ary 15, 2007.

Statement of Purpose / Fiscal Impact


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                      STATEMENT OF PURPOSE
                                
                            RS 15875


This legislation amends Chapter 14, Title 67 of the Idaho Code to
provide for the investigation and prosecution of medicaid fraud
by the Office of Attorney General.  It also outlines the adoption
procedures, collection of overpayments, employment of necessary
personnel, and rulemaking authority.

Medicaid fraud is currently monitored as part of a combined unit
in the Department of Health and Welfare and does not meet the
independence requirements to become federally certified.  Idaho
is one of only two States that does not currently have a
Certified Medicaid Fraud Control Unit.  The Federal Government
recognizes the need for an independent unit by offering to pay
most of the costs.


                          FISCAL IMPACT

A separate Medicaid Fraud Control Unit established in the
Attorney General's Office would meet the independence
requirements and allow the Unit to receive a federal grant
program that provides 90% funding for the first three years and
75% funding every year thereafter.  The current fraud unit is
funded at 50% federal matching funds.

Existing appropriations for Medicaid fraud investigations within
the Department of Health and Welfare could be transferred to the
Office of Attorney General to provide the necessary matching
funds for the federal grant program.

It is estimated that there will be a fiscal impact of $740,750
for start up and transition costs.  



CONTACT
Name:     Rep. Russ Mathews 
          Speaker Bruce Newcomb
          Rep. Lawrence Denney
          Rep. Mike Moyle
          Rep. Julie Ellsworth
          Rep. Janice McGeachin
          Rep. Margaret Henbest
Phone:    (208) 332-1000


STATEMENT OF PURPOSE/FISCAL NOTE                         H 668