HI SB2166

Requires the Department of Human Services to develop strategies and coordinate efforts to detect and prevent fraud and abuse before illegitimate Medicaid claims are paid, covering Medicaid managed care and children's health insurance programs.

Establishes that waste, fraud, and abuse cost state Medicaid programs an estimated $18 billion per year nationwide, with the current "pay-and-chase" model being inefficient compared to prevention-based screening.

Directs the Department of Human Services to submit a report with findings, recommendations, and proposed legislation to the legislature no later than twenty days before the 2013 regular session.

Ensures compliance with federal program integrity provisions under the Patient Protection and Affordable Care Act and Health Care and Education Reconciliation Act of 2010.

Takes effect on July 1, 2012.