HB110 Summary: The Medicaid Fraud Reduction Act of 2013

• Establishes comprehensive Medicaid fraud prohibitions including false statements in claims, failure to disclose material facts or changes in circumstances, unauthorized use of Medicaid identification cards, and filing false claims for services not rendered.

• Creates tiered criminal penalties: Class C felony for fraud involving $500 or more, Class A misdemeanor for fraud under $500, and mandatory 3-year minimum exclusion from Medicaid programs for convicted providers regardless of fraud amount.

• Expands definition of fraud to include fraudulent records in computer systems, unauthorized use of computer facilities, alteration or destruction of Medicaid files, and theft of Medicaid financial instruments and data.

• Establishes 5-year statute of limitations for prosecution of Medicaid fraud offenses and defines "person" to include individuals, corporations, partnerships, and associations.

• Appropriates $750,000 total to the Office of the Attorney General for the Medicaid Fraud Control Unit ($250,000 annually for fiscal years 2014-2016) and $1,000,000 to Alabama Medicaid Agency for fraud prevention and detection systems.