HB 254 Summary

• Prohibits knowingly presenting false or fraudulent claims against state health plans, including the state and school employees life and health insurance plan and Medicaid, with civil penalties of $5,000-$10,000 per violation plus up to three times actual damages.

• Establishes a qui tam (whistleblower) provision allowing private citizens to file civil actions on behalf of the state against violators, with complaints remaining sealed for 60 days while the state decides whether to intervene.

• Provides whistleblower protections prohibiting retaliation against employees, contractors, or grantees who report violations or participate in investigations, with remedies including reinstatement, back pay multiplied by two, and punitive damages.

• Awards successful private plaintiffs 15-25% of recovered proceeds if the state intervenes, or 25-30% if the state does not intervene, plus reasonable expenses and attorney's fees.

• Establishes a six-year statute of limitations (or ten years maximum) for filing civil actions and requires the Attorney General to file annual reports to the Legislature on false claims cases.