senate Bill S2617A

2013-2014 Legislative Session

Relates to creating incentives for counties to investigate and prosecute medicaid fraud

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Archive: Last Bill Status - Passed Senate


  • Introduced
  • In Committee
  • On Floor Calendar
    • Passed Senate
    • Passed Assembly
  • Delivered to Governor
  • Signed/Vetoed by Governor

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Actions

view actions (18)
Assembly Actions - Lowercase
Senate Actions - UPPERCASE
Jun 12, 2014 referred to health
delivered to assembly
passed senate
Jun 02, 2014 advanced to third reading
May 29, 2014 2nd report cal.
May 28, 2014 1st report cal.935
May 13, 2014 reported and committed to finance
Jan 08, 2014 referred to social services
returned to senate
died in assembly
May 30, 2013 referred to health
delivered to assembly
passed senate
May 29, 2013 ordered to third reading cal.808
committee discharged and committed to rules
Apr 25, 2013 print number 2617a
amend and recommit to social services
Jan 23, 2013 referred to social services

Votes

view votes

May 13, 2014 - Social Services committee Vote

S2617A
6
0
committee
6
Aye
0
Nay
0
Aye with Reservations
0
Absent
0
Excused
0
Abstained
show Social Services committee vote details

Social Services Committee Vote: May 13, 2014

May 29, 2013 - Rules committee Vote

S2617A
25
0
committee
25
Aye
0
Nay
0
Aye with Reservations
0
Absent
0
Excused
0
Abstained
show Rules committee vote details

Bill Amendments

Original
A (Active)
Original
A (Active)

Co-Sponsors

S2617 - Bill Details

See Assembly Version of this Bill:
A5042A
Current Committee:
Law Section:
Social Services Law
Laws Affected:
Add Art 5-A §370-bb, amd §145-b, Soc Serv L
Versions Introduced in 2011-2012 Legislative Session:
S6881, A9494

S2617 - Bill Texts

view summary

Creates incentives for counties to investigate and prosecute medicaid fraud.

view sponsor memo
BILL NUMBER:S2617

TITLE OF BILL:
An act
to amend the social services law, in relation to creating incentives for
counties to investigate and prosecute medicaid fraud

PURPOSE:
The purpose of this bill is to provide financial incentives to the
City of New York and the counties to identify and prosecute Medicaid
fraud, thereby helping eliminate fraud, waste and abuse.

SUMMARY OF PROVISIONS:
The social services law is amended by adding a new article 5-A and
amending subdivision 2 of section 145-b to enable the City of New
York and the counties to keep 100% of the local share of any
successful Medicaid fraud prosecution, or 10% of the recovery,
whichever is greater.

JUSTIFICATION:
It is essential to minimize any waste, fraud or abuse in the Medicaid
system by encouraging and rewarding successful efforts by the City of
New York and the counties to prosecute Medicaid fraud.

The current law limits the amounts that local governments can receive
based on successful Medicaid fraud prosecution. This bill would
ensure that local governments would receive 100% of the local share
of such Medicaid payments, thereby reimbursing the local governments
in full for the original overpayment. Since the local share on some
programs may be very small, the local governments would be guaranteed
at least 10% of any recovery. The State would receive the balance of
recoveries.

By encouraging more Medicaid fraud prosecutions, the total costs of
the system will be reduced, to the benefit of both the State and
local governments. The State, of course, would be the biggest
beneficiary of the reduction in the amount of fraud and abuse because
it pays a substantially higher percentage of Medicaid costs than the
local governments.

This legislation is particularly important because the existing
Medicaid payment cap that applies to local governments inadvertently
reduced the financial incentive for local governments to root out
fraud, waste and abuse. Under the cap legislation, the cost to local
governments is automatically determined by the amount specified by
the cap rather than being based on actual costs. This bill would
restore the financial incentive to local governments by enabling them
to enjoy 100% of the local share of any savings resulting from
successful Medicaid fraud prosecutions.

LEGISLATIVE HISTORY:
2012: S.6881/A.9494 Passed Senate

FISCAL IMPLICATIONS:
This bill allows the city of New York and the counties to recoup 100%


of the local share upon the successful prosecution of Medicaid fraud,
or at 10% whichever is greater.

EFFECTIVE DATE:
This act shall take effect immediately.

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download pdf
                    S T A T E   O F   N E W   Y O R K
________________________________________________________________________

                                  2617

                       2013-2014 Regular Sessions

                            I N  S E N A T E

                            January 23, 2013
                               ___________

Introduced  by  Sens. YOUNG, GALLIVAN -- read twice and ordered printed,
  and when printed to be committed to the Committee on Social Services

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:

  Section 1. The social services law is amended by adding a new  article
5-A to read as follows:
                                ARTICLE 5-A
                      MEDICAID FRAUD REIMBURSEMENT
SECTION  370-BB.  DISPOSITION  OF  MONEYS  RECEIVED AS THE RESULT OF THE
                  PROSECUTION OF MEDICAID FRAUD.
  S 370-BB. DISPOSITION OF MONEYS RECEIVED AS THE RESULT OF  THE  PROSE-
CUTION OF MEDICAID FRAUD. 1. FOR THE PURPOSES OF THIS SECTION, "MEDICAID
FRAUD"  SHALL  MEAN  THE  KNOWING COMMISSION OF ANY CRIME WITH INTENT TO
ILLEGALLY RECEIVE BENEFITS, OR REIMBURSEMENT FROM THE MEDICAL ASSISTANCE
FOR NEEDY PERSONS PROGRAM ESTABLISHED AND ADMINISTERED PURSUANT TO  THIS
CHAPTER, THE PUBLIC HEALTH LAW AND FEDERAL LAW.
  2.  SHOULD  ANY  COUNTY OR THE CITY OF NEW YORK SUCCESSFULLY PROSECUTE
ANY CASE FOR MEDICAID FRAUD AND A  COURT  AWARDS  RESTITUTION  OR  CIVIL
FORFEITURE,  THE  FOLLOWING  PORTION  OF  THE  NON-FEDERAL  SHARE OF THE
PROCEEDS OF SUCH RESTITUTION OR CIVIL FORFEITURE SHALL BE  ALLOCATED  AS
FOLLOWS:
  (I)  THE  COUNTY  OR  THE  CITY  OF NEW YORK SHALL RECEIVE ONE HUNDRED
PERCENT OF THE LOCAL SHARE OF SUCH FUNDS, IN EFFECT IMMEDIATELY PRIOR TO
SUCH DATE AS CERTIFIED BY THE DIVISION OF BUDGET OR TEN PERCENT  OF  THE
TOTAL RECOVERY WHICHEVER NUMBER IS GREATER;
  (II) THE REMAINDER THEREOF SHALL BE DEPOSITED INTO THE GENERAL FUND OF
THE STATE.

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD07129-01-3

S. 2617                             2

  3.  NOTHING IN THIS ARTICLE SHALL IMPAIR ANY COUNTY OR THE CITY OF NEW
YORK'S ABILITY TO SEEK DAMAGES UNDER SECTION ONE HUNDRED FORTY-FIVE-B OF
THIS CHAPTER.
  S  2.  Paragraph  (a)  of subdivision 2 of section 145-b of the social
services law, as amended by chapter 109 of the laws of 2007, is  amended
to read as follows:
  (a)  For  civil damages collected by a local social services district,
relating to the medical assistance program, pursuant to a judgment under
this subdivision, such amounts shall be apportioned  between  the  local
social  services district and the state. [If the violation occurred: (i)
prior to January first, two thousand six, the] THE amount apportioned to
the local social services district shall be ONE HUNDRED PERCENT  OF  the
local  share  [percentage] OF SUCH FUNDS, in effect immediately prior to
such date as certified by the division of budget[, or (ii) after January
first, two thousand six, the amount  apportioned  to  the  local  social
services district shall be based on a reimbursement schedule, created by
the  office  of  Medicaid  inspector  general, in effect at the time the
violation occurred; provided that, if there is no schedule in effect  at
the  time  the  violation occurred, the schedule to be used shall be the
first schedule adopted pursuant to this subdivision. Such schedule shall
provide for reimbursement to a local  social  services  district  in  an
amount  between  ten  and fifteen percent of the gross amount collected.
Such schedule shall be set on a county by  county  basis  and  shall  be
periodically  reviewed and updated as necessary; provided, however, that
any such updated schedule shall not be less than ten percent nor greater
than fifteen percent of the gross amount collected] OR  TEN  PERCENT  OF
THE TOTAL RECOVERY WHICHEVER NUMBER IS GREATER; and
  S 3. This act shall take effect immediately.

Co-Sponsors

view additional co-sponsors

S2617A (ACTIVE) - Bill Details

See Assembly Version of this Bill:
A5042A
Current Committee:
Law Section:
Social Services Law
Laws Affected:
Add Art 5-A §370-bb, amd §145-b, Soc Serv L
Versions Introduced in 2011-2012 Legislative Session:
S6881, A9494

S2617A (ACTIVE) - Bill Texts

view summary

Creates incentives for counties to investigate and prosecute medicaid fraud.

view sponsor memo
BILL NUMBER:S2617A

TITLE OF BILL: An act to amend the social services law, in relation
to creating incentives for counties to investigate and prosecute
medicaid fraud

PURPOSE: The purpose of this bill is to provide financial incentives
to the City of New York and the counties to identify and prosecute
Medicaid fraud, thereby helping eliminate fraud, waste and abuse.

SUMMARY OF PROVISIONS: The social services law is amended by adding a
new article 5-A and amending subdivision 2 of section 145-b to enable
the City of New York and the counties to keep 100% of the local share
of any successful Medicaid fraud prosecution or settlement, or 10% of
the total recovery, whichever is greater.

JUSTIFICATION: It is essential to minimize any waste, fraud or abuse
in the Medicaid system by encouraging and rewarding successful efforts
by the City of New York and the counties to prosecute Medicaid fraud.

The current law limits the amounts that local governments can receive
based on successful Medicaid fraud prosecution. This bill would ensure
that local governments would receive 100% of the local share of such
Medicaid payments, thereby reimbursing the local governments in full
for the original overpayment. Since the local share on some programs
may be very small, the local governments would be guaranteed at least
10% of any recovery, including settlement. The State would receive the
balance of recoveries.

By encouraging more Medicaid fraud prosecutions, the total costs of
the system will be reduced, to the benefit of both the State and local
governments. The State, of course, would be the biggest beneficiary of
the reduction in the amount of fraud and abuse because it pays a
substantially higher percentage of Medicaid costs than the local
governments.

This legislation is particularly important because the existing
Medicaid payment cap that applies to local governments inadvertently
reduced the financial incentive for local governments to root out
fraud, waste and abuse. Under the cap legislation, the cost to local
governments is automatically determined by the amount specified by the
cap rather than being based on actual costs. This bill would restore
the financial incentive to local governments by enabling them to enjoy
100% of the local share of any savings resulting from successful
Medicaid fraud prosecutions and settlements.

LEGISLATIVE HISTORY: 2012: S 6881/A.9494 Passed Senate

FISCAL IMPLICATIONS: This bill allows the city of New York and the
counties to recoup 100% of the local share upon the successful
prosecution or settlement of Medicaid fraud, or 10% of the total
recovery, whichever is greater.

EFFECTIVE DATE: This act shall take effect immediately.

view full text
download pdf
                    S T A T E   O F   N E W   Y O R K
________________________________________________________________________

                                 2617--A

                       2013-2014 Regular Sessions

                            I N  S E N A T E

                            January 23, 2013
                               ___________

Introduced  by  Sens. YOUNG, GALLIVAN -- read twice and ordered printed,
  and when printed to be committed to the Committee on  Social  Services
  --  committee  discharged,  bill amended, ordered reprinted as amended
  and recommitted to said committee

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:

  Section 1. The social services law is amended by adding a new  article
5-A to read as follows:
                                ARTICLE 5-A
                      MEDICAID FRAUD REIMBURSEMENT
SECTION  370-BB.  DISPOSITION  OF  MONEYS  RECEIVED AS THE RESULT OF THE
                  PROSECUTION OF MEDICAID FRAUD.
  S 370-BB. DISPOSITION OF MONEYS RECEIVED AS THE RESULT OF  THE  PROSE-
CUTION OF MEDICAID FRAUD. 1. FOR THE PURPOSES OF THIS SECTION, "MEDICAID
FRAUD"  SHALL  MEAN  THE  KNOWING COMMISSION OF ANY CRIME WITH INTENT TO
ILLEGALLY RECEIVE BENEFITS, OR REIMBURSEMENT FROM THE MEDICAL ASSISTANCE
FOR NEEDY PERSONS PROGRAM ESTABLISHED AND ADMINISTERED PURSUANT TO  THIS
CHAPTER, THE PUBLIC HEALTH LAW AND FEDERAL LAW.
  2.  SHOULD  ANY  COUNTY OR THE CITY OF NEW YORK SUCCESSFULLY PROSECUTE
ANY CASE FOR MEDICAID FRAUD AND A  COURT  AWARDS  RESTITUTION  OR  CIVIL
FORFEITURE,  THE  FOLLOWING  PORTION  OF  THE  NON-FEDERAL  SHARE OF THE
PROCEEDS OF SUCH RESTITUTION OR CIVIL FORFEITURE SHALL BE  ALLOCATED  AS
FOLLOWS:
  (I)  THE  COUNTY  OR  THE  CITY  OF NEW YORK SHALL RECEIVE ONE HUNDRED
PERCENT OF THE LOCAL SHARE OF SUCH FUNDS, IN EFFECT IMMEDIATELY PRIOR TO
SUCH DATE AS CERTIFIED BY THE DIVISION OF BUDGET OR TEN PERCENT  OF  THE
TOTAL RECOVERY WHICHEVER NUMBER IS GREATER;
  (II) THE REMAINDER THEREOF SHALL BE DEPOSITED INTO THE GENERAL FUND OF
THE STATE.

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD07129-02-3

S. 2617--A                          2

  3.  NOTHING IN THIS ARTICLE SHALL IMPAIR ANY COUNTY OR THE CITY OF NEW
YORK'S ABILITY TO SEEK DAMAGES UNDER SECTION ONE HUNDRED FORTY-FIVE-B OF
THIS CHAPTER.
  S  2.  Paragraph  (a)  of subdivision 2 of section 145-b of the social
services law, as amended by chapter 109 of the laws of 2007, is  amended
to read as follows:
  (a)  For  civil damages collected by a local social services district,
relating to the medical assistance program, pursuant to  a  judgment  OR
SETTLEMENT  under  this  subdivision,  such amounts shall be apportioned
between the local social  services  district  and  the  state.  [If  the
violation  occurred:  (i) prior to January first, two thousand six, the]
THE amount apportioned to the local social services  district  shall  be
ONE  HUNDRED  PERCENT  OF the local share [percentage] OF SUCH FUNDS, in
effect immediately prior to such date as certified by  the  division  of
budget[,  or  (ii)  after  January  first,  two thousand six, the amount
apportioned to the local social services district shall be  based  on  a
reimbursement  schedule,  created  by  the  office of Medicaid inspector
general, in effect at the time the violation occurred; provided that, if
there is no schedule in effect at the time the violation  occurred,  the
schedule to be used shall be the first schedule adopted pursuant to this
subdivision.  Such  schedule  shall provide for reimbursement to a local
social services district in an amount between ten and fifteen percent of
the gross amount collected. Such schedule shall be set on  a  county  by
county  basis  and  shall be periodically reviewed and updated as neces-
sary; provided, however, that any such updated  schedule  shall  not  be
less  than  ten  percent  nor  greater than fifteen percent of the gross
amount collected] OR TEN PERCENT OF THE TOTAL RECOVERY WHICHEVER  NUMBER
IS GREATER; and
  S 3. This act shall take effect immediately.

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