Expansion of Medicaid fraud investigation powers advanced

A bill that would update several provisions of the Nebraska False Medicaid Claims Act was advanced from general file Jan. 23.

LB664, introduced by Ralston Sen. Merv Riepe, would expand the authority of the state’s Medicaid fraud control unit. Under the bill, the unit — which is part of the state attorney general’s office — would be authorized to investigate and prosecute cases of abuse, neglect or exploitation of Medicaid recipients who receive medical services inside and outside of institutional settings.

The proposal also would grant the attorney general’s office access to all applicable records of any resident living in a Medicaid-funded facility when investigating and prosecuting instances of abuse, neglect or exploitation, regardless of whether the resident is a Medicaid recipient. This would include an expansion of preexisting subpoena powers.

Medicaid fraud control units were granted these powers by Congress in the mid-1970s, Riepe said, but current Nebraska law contradicts that authority by prohibiting the unit from reviewing or obtaining information concerning non-Medicaid residents of health care facilities without the patient’s consent or a court order.

“[LB664 makes] Nebraska’s laws consistent with Congress’s intent and aligns this statute with similar provisions found in 49 other states,” Riepe said.

Lawmakers voted 41-0 to advance the bill to the second round of debate.