AR SB914

Creates the Office of Medicaid Inspector General within the Governor's office as an independent entity from the Department of Human Services, with an inspector general appointed by the Governor with Senate approval requiring at least 10 years of experience in fraud prosecution, investigation, auditing, or health care fraud.

Establishes comprehensive powers for the inspector general including authority to prevent, detect, and investigate Medicaid fraud and abuse; refer cases for criminal prosecution; recover improper payments; audit program functions; subpoena witnesses and records; and coordinate with federal, state, and local law enforcement agencies.

Requires providers receiving $750,000 or more annually from Medicaid to adopt and implement a compliance program with specified components including written policies, designated compliance officer, employee training, confidential reporting mechanisms, and disciplinary policies.

Defines healthcare fraud as a criminal offense with penalties ranging from Class A misdemeanor to Class A felony depending on the amount wrongfully received in a one-year period ($10,000 to $1,000,000).

Declares an emergency and makes the act effective July 1, 2013, finding that Medicaid program oversight is essential to prevent misuse of state and federal funds.