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Medicaid Provider Suspension for Organized Fraud

Concerning authorizing the department of health care policy and financing to suspend a provider's enrollment if the provider is participating in an organized fraud scheme.
2024 Regular Session
Health Care & Health Insurance
Bill Summary

The act authorizes the department of health care policy and financing (state department) to suspend the enrollment of a medicaid and children's basic health plan (programs) provider only if the state department identifies that the provider is participating in an alleged and ongoing organized crime or organized fraud scheme (scheme) that impacts the programs and if the state department documents in writing that at least 3 of the following factors are met:

  • The provider has been enrolled in the programs for less than 3 years;
  • At least 3 providers are involved in the scheme;
  • The collective billing amount identified in the scheme exceeds $1 million;
  • The provider's billing indicates a pattern of abuse or noncompliance;
  • The volume of claims or billing amount has increased at a significant rate and there is no other reasonable explanation for the increase;
  • The federal centers for medicare and medicaid services has approved a provider enrollment moratorium for the provider type involved in the scheme; or
  • The state department has notified law enforcement of the scheme.

The state department is required to notify the provider of the suspension in writing, including the reasons for the suspension.

The state department may suspend a provider's enrollment for an initial period of 6 months while the state department conducts a review of the scheme. After the state department's review is complete, the state department must reinstate the provider's enrollment if the department determines the provider did not engage in a scheme. If the state department's review cannot be completed during the initial 6-month period, the state department may extend the review period in additional 6-month increments if the state department documents in writing the necessity for extending the review.

APPROVED by Governor February 20, 2024

EFFECTIVE February 20, 2024
(Note: This summary applies to this bill as enacted.)


Became Law


Bill Text

  • All Versions (7 )
    Date Bill Type Documents
    02/20/2024 Signed Act PDF
    02/15/2024 Final Act PDF
    02/08/2024 Rerevised PDF
    02/07/2024 Revised PDF
    02/05/2024 Reengrossed PDF
    02/02/2024 Engrossed PDF
    01/29/2024 Introduced PDF

The effective date for bills enacted without a safety clause is August 7, 2024, if the General Assembly adjourns sine die on May 8, 2024, unless otherwise specified. Details