Bill would extend Medicaid fraud statute of limitations

Unicameral Update
January 29, 2010

The criminal statute of limitations for submitting false Medicaid claims would increase from three to five years under a bill heard by the Judiciary Committee Jan. 29.

Sen. Kent Rogert of Tekamah, sponsor of LB809, said investigating complex Medicaid fraud schemes requires significant time and resources, resulting in many criminals avoiding prosecution under the current three-year statute of limitations.

LB809 would apply to crimes where the value of benefits sought or obtained through fraudulent means is $500 or more, and the extended statute of limitations would apply to offenses committed prior to the effective date of the bill.

Mark Collins, director of the Medicaid fraud and patient abuse unit of the state attorney general’s office, testified in support of the bill.

Cases are referred to the unit by the Medicaid division of the state Department of Health and Human Services, Collins said, usually after the crimes have been going on for months. The fraud unit then begins the task of investigating bank and medical records and conducting interviews.

“Investigations often require the examination of thousands of documents,” he said.

Collins said extending the statute of limitations would allow the fraud unit to pursue more cases, adding that money recovered from criminal investigations is turned back to the state.

Rogert said the fraud unit has recovered over $32 million since 2004.

There was no opposition testimony and the committee took no immediate action on the bill.

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