SB 406 Summary

• Excludes Medicaid-related claims and submissions made after June 30, 2014 from the state False Claims Act (IC 5-11-5.5-2), effective July 1, 2014.

• Establishes a new Medicaid-specific False Claims Act (IC 5-11-5.7) allowing private citizens to file lawsuits on behalf of the state for Medicaid fraud, with civil penalties of $5,500 to $11,000 plus up to three times damages.

• Permits whistleblowers to recover 15-30% of settlement proceeds (or up to 10% if case based primarily on public disclosures), plus reasonable attorney's fees and litigation costs.

• Provides protections for employees, contractors, and agents against retaliation for reporting violations, including reinstatement, double back pay, and damages.

• Designates the Office of the Secretary as the single state agency for Medicaid program administration and policy coordination.