SB3354 Summary

• Amends the Illinois Public Aid Code to expand grounds for denying, suspending, excluding, or terminating vendor eligibility in the Medicaid program, including for outstanding debts owed to the Department.

• Establishes new subsection (A-15) allowing the Department to deny vendor eligibility when applicants or their associates have debts to the Department without acceptable payment arrangements, or when there is credible evidence of asset transfers or management responsibility transfers from vendors with outstanding debts.

• Authorizes the Department to recover interest on overpayments exceeding $100 at one-half of 1% per month (maximum 6% per annum) and to withhold payments during audits, investigations, or proceedings when there is credible evidence of financial risk or non-cooperation.

• Creates new provisions allowing the Department to withhold payments based on indictments for fraud-related felonies and to impose surety bond requirements on vendors and alternate payees with prior terminations or debt obligations.

• Establishes procedures for payment withholding with notice requirements, temporary withholding periods not to exceed 3 years, and processes for providers to request reconsideration or release of withheld payments.