HB416 Alabama 2012 Session

Summary

Primary Sponsor

Rod Scott

Democrat

Session

Regular Session 2012

Title

Health Insurance, unlawful to make false statement in a claim for medical benefits to be paid by state agencies that administer state or federally funded health care programs, unlawful to refer individual for service subject to reimbursement or solicit or receive remuneration for purchasing, leasing, ordering or arranging for or recommending purchashing, leasing, or ordering any good, facility, service or item for which payment may be made by state or federally funded health care program, Sec. 22-1-11 am'd

Summary

HB416 expands Alabama's health-care fraud laws to cover false claims and improper referrals involving Medicaid and other state- or federally funded health care programs.

What This Bill Does

The bill makes false statements in claims for medical benefits to Medicaid or other state/federal health care programs unlawful. It also prohibits soliciting or receiving remuneration for referring individuals or for purchasing, leasing, ordering, or arranging items paid by these programs. Penalties for these offenses are felony-level, with fines up to $10,000 and 1-5 years in prison, and offenses can be charged separately; the offense is not complete until the claim is received by the program or its agents. It includes exemptions for properly disclosed discounts and employer-paid wages.

Who It Affects

• Individuals who file claims for medical benefits (patients or their representatives) who could face felony penalties for false statements.
• Healthcare providers, suppliers, and referral or purchasing intermediaries who could face felony penalties for soliciting or receiving kickbacks or remuneration tied to services or items paid by Medicaid or other programs.

Key Provisions

• Extends Medicaid fraud protections to cover false statements in claims for medical benefits from other state or federally funded health care programs.
• Prohibits soliciting or receiving remuneration for referrals or for purchasing, leasing, ordering, or arranging goods or services paid by these programs.
• Imposes felony penalties (up to $10,000 fine and 1-5 years in prison) with separate counts allowed for multiple offenses, and specifies offenses are complete when the claim is received by the program or its agents.
• Provides exemptions for properly disclosed discounts reflected in program costs and for employer-paid wages to employees.
• Sets an effective date: the act takes effect on the first day of the third month after passage and governor approval.

AI-generated summary using openai/gpt-5-nano on Feb 24, 2026. May contain errors — refer to the official bill text for accuracy.

Subjects

Health Insurance