AR HB2140

Establishes the Office of the Medicaid Inspector General within the Governor's office, appointed by the Governor with Senate consent, to consolidate Medicaid fraud detection, prevention, and recovery functions into a single office

Creates five felony and one misdemeanor health care fraud offenses (5-37-602 through 5-37-606) with penalties ranging from Class A misdemeanor to Class A felony based on wrongfully received payment amounts exceeding $3,000 to $1,000,000

Grants the Medicaid Inspector General broad investigative and enforcement powers including subpoena authority, civil recovery actions, provider exclusions, audits, and coordination with law enforcement and regulatory agencies

Requires the Department of Human Services in consultation with the Inspector General to develop and test new methods for detecting fraud, improving claims review processes, and coordinating benefits between Medicaid and other coverage sources by specific deadlines (January 1, 2014)

Mandates medical assistance providers adopt and implement compliance programs with written policies, designated compliance officers, employee training, lines of communication, and disciplinary policies, with the Inspector General creating model guidelines

Establishes a provider advisory opinion process allowing the Director of Human Services to issue binding written opinions on Medicaid program applicability to specific provider situations, excluding matters under investigation