HB290 Alabama 2016 Session

Summary

Primary Sponsor

Connie C. Rowe

Republican

Session

Regular Session 2016

Title

Medicaid fraud, crime of further provided for, statutes of limitations revised for certain fraudulent activity, Sec. 22-1-11 am'd.

Summary

HB290 tightens Alabama Medicaid fraud penalties by requiring intent, allowing corporations to be charged, and extending the statute of limitations to six years while aligning with federal safe-harbor rules.

What This Bill Does

The bill says you must knowingly commit Medicaid fraud for penalties to apply, and it makes corporations and other business entities subject to these penalties. It adds a six-year time limit to prosecute offenses and clarifies when discounts or federal safe-harbor rules apply as exemptions. It also preserves existing kickback and referral prohibitions with penalties and states that the act is exempt from certain local-expenditure rules because it creates a new crime.

Who It Affects

• Medicaid providers, suppliers, and contractors who submit false claims or engage in kickbacks or referral schemes would face criminal penalties, including fines and possible jail time.
• Corporations and other business entities are explicitly defined as 'persons' who can be charged and punished for Medicaid fraud offenses.

Key Provisions

• Amends Section 22-1-11 to require knowingly engaging in prohibited conduct for penalties to apply; false statements must be made knowingly; offense not complete until claim is received by Medicaid Agency or its contractor.
• Imposes Class C felony penalties (up to $10,000 fine and 1-5 years in prison) for soliciting/remuneration for referrals or for purchasing/arranging items paid for by Medicaid; allows multiple offenses in one indictment; provides a six-year statute of limitations; defines 'person' to include corporations; adds safe-harbor exemptions and 42 CFR 1001.952 exceptions; sets effective date.

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

Subjects

Medicaid