HB3734 Summary: Medicaid Fraud-Penalties

• Increases criminal penalties for medical assistance fraud by elevating felony classifications: violations involving less than $150 become Class 4 felonies (from Class A misdemeanor), $150-$1,000 become Class 3 felonies (from Class 4), and violations of $10,000 or more become Class X felonies (from Class 1).

• Increases civil penalties for fraudulent medical assistance claims from $2,000 to $4,000 per fraudulent claim for both individual recipients and vendors.

• Increases criminal penalties for unfair or deceptive marketing practices in health care, making first violations Class 4 felonies with fines up to $10,000 and subsequent violations Class 3 felonies with fines up to $50,000.

• Increases penalties for nursing home violations (charging excessive rates or soliciting gifts as preconditions for admission) from $5,000-$25,000 fines to $10,000-$50,000 fines.

• Increases corporate penalty caps from $50,000 to $100,000 for Class 1-4 felonies and from $250,000 to $500,000 for Class X felonies under medical assistance fraud statutes.