SB518 Summary

• Updates definitions in the Medicaid Fraud Act and Medicaid Fraud False Claims Act to reflect modern healthcare system changes, including managed care organizations and expanded documentation requirements

• Reduces civil penalties for Medicaid fraud violations to align with federal law, changing maximum multiplier from 3 times to 2 times the overpayment amount

• Enhances criminal sentences by one classification level when Medicaid fraud causes serious physical injury or death to a Medicaid recipient

• Creates new offense of "obstructing a Medicaid review, audit, investigation, or prosecution" as Class B felony if related to felony offense, Class A misdemeanor otherwise

• Establishes new section § 5-55-112 creating separate criminal statute for kickbacks and unlawful remuneration with specific classifications based on compensation amounts ($1,000-$25,000+)