TX SB2579

Creates a new criminal offense for health care fraud against private health benefit plan issuers, covering false statements, concealment of information, fraudulent claims for unapproved or substandard services, and conspiracy to defraud insurers

Establishes civil penalties for violations ranging from $5,500 to $15,000 per violation when elderly persons, persons with disabilities, or minors are injured, and $5,500 to $11,000 for other violations, plus two times the payment amount obtained through fraud

Authorizes private persons to bring civil actions (qui tam lawsuits) on behalf of themselves and the state for insurance fraud, with private claimants entitled to receive 15-30% of proceeds depending on state involvement and their contribution to the case

Creates a fraud prevention partnership between the Texas Department of Insurance and the Health and Human Services Commission Office of Inspector General to coordinate health care fraud detection across private and public insurance markets

Provides whistleblower protections for employees who report fraud, including reinstatement rights and double back pay for those facing retaliation, with a three-year statute of limitations for retaliation claims