AR HB1719

Updates adult abuse penalties including Class D felony for purposeful abuse causing physical injury, Class C misdemeanor for purposeful neglect without physical injury, and graduated exploitation penalties ranging from Class B felony ($2,500 or more) to Class A misdemeanor ($200 or less).

Expands definition of "illegal Medicaid participation" to prohibit suspended or excluded individuals and organizations from directly or indirectly participating in Arkansas Medicaid, including employment, management roles, and payment for administrative services.

Establishes a 50% reduction in civil penalties when a Medicaid provider discovers and reports fraud within 30 days and cooperates with the Attorney General, provided no criminal prosecution or investigation has commenced.

Modifies Medicaid fraud sentencing: Class C felony for $2,500-$4,999, Class B felony for $5,000-$24,999, and Class A felony for $25,000 or more, with graduated penalties for illegal participation ranging from Class A misdemeanor to Class C felony.

Clarifies reward payment eligibility (up to 10% of collected civil penalties) applies only to recovered penalties, not restitution, and permits the Department of Human Services to return portions of penalties to managed care organizations that suffered losses.