Bill Text: NY A01723 | 2023-2024 | General Assembly | Introduced

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Bill Title: Creates incentives for counties to investigate and prosecute medicaid fraud.

Spectrum: Partisan Bill (Republican 12-0)

Status: (Introduced) 2023-03-22 - enacting clause stricken [A01723 Detail]

Download: New_York-2023-A01723-Introduced.html

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                STATE OF NEW YORK
        ________________________________________________________________________

                                          1723

                               2023-2024 Regular Sessions

                   IN ASSEMBLY

                                    January 20, 2023
                                       ___________

        Introduced  by M. of A. GOODELL -- read once and referred to the Commit-
          tee on Health

        AN ACT to amend the social services law, in relation to creating  incen-
          tives for counties to investigate and prosecute medicaid fraud

          The  People of the State of New York, represented in Senate and Assem-
        bly, do enact as follows:

     1    Section 1. The social services law is amended by adding a new  article
     2  5-A to read as follows:
     3                                  ARTICLE 5-A
     4                        MEDICAID FRAUD REIMBURSEMENT
     5  Section 370-bb. Disposition  of  moneys  received  as  the result of the
     6                    prosecution of medicaid fraud.
     7    § 370-bb. Disposition of moneys received as the result of  the  prose-
     8  cution of medicaid fraud. 1. For the purposes of this section, "medicaid
     9  fraud"  shall  mean  the  knowing commission of any crime with intent to
    10  illegally receive benefits, or reimbursement from the medical assistance
    11  for needy persons program established and administered pursuant to  this
    12  chapter, the public health law and federal law.
    13    2.  Should  any  county or the city of New York successfully prosecute
    14  any case for medicaid fraud and a  court  awards  restitution  or  civil
    15  forfeiture,  the  following  portion  of  the  non-federal  share of the
    16  proceeds of such restitution or civil forfeiture shall be  allocated  as
    17  follows:
    18    (i)  the  county  or  the  city  of New York shall receive one hundred
    19  percent of the local share of such funds, in effect immediately prior to
    20  such date as certified by the division of budget or ten percent  of  the
    21  total recovery whichever number is greater; and
    22    (ii) the remainder thereof shall be deposited into the general fund of
    23  the state.

         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD06075-01-3
        A. 1723                             2

     1    3.  Nothing in this article shall impair any county or the city of New
     2  York's ability to seek damages under section one hundred forty-five-b of
     3  this chapter.
     4    §  2.  Paragraph  (a)  of subdivision 2 of section 145-b of the social
     5  services law, as amended by chapter 109 of the laws of 2007, is  amended
     6  to read as follows:
     7    (a)  For  civil damages collected by a local social services district,
     8  relating to the medical assistance program, pursuant to  a  judgment  or
     9  settlement  under  this  subdivision,  such amounts shall be apportioned
    10  between the local social  services  district  and  the  state.  [If  the
    11  violation  occurred:  (i) prior to January first, two thousand six, the]
    12  The amount apportioned to the local social services  district  shall  be
    13  one  hundred  percent  of the local share [percentage] of such funds, in
    14  effect immediately prior to such date as certified by  the  division  of
    15  budget[,  or  (ii)  after  January  first,  two thousand six, the amount
    16  apportioned to the local social services district shall be  based  on  a
    17  reimbursement  schedule,  created  by  the  office of Medicaid inspector
    18  general, in effect at the time the violation occurred; provided that, if
    19  there is no schedule in effect at the time the violation  occurred,  the
    20  schedule to be used shall be the first schedule adopted pursuant to this
    21  subdivision.  Such  schedule  shall provide for reimbursement to a local
    22  social services district in an amount between ten and fifteen percent of
    23  the gross amount collected. Such schedule shall be set on  a  county  by
    24  county  basis  and  shall be periodically reviewed and updated as neces-
    25  sary; provided, however, that any such updated  schedule  shall  not  be
    26  less  than  ten  percent  nor  greater than fifteen percent of the gross
    27  amount collected] or ten percent of the total recovery whichever  number
    28  is greater; and
    29    § 3. This act shall take effect immediately.