SB367 Alabama 2017 Session

Summary

Primary Sponsor

Trip Pittman

Republican

Session

Regular Session 2017

Title

Fraudulent claims, treble damages for persons filing false claims, civil penalties, Attorney General required to investigate and initiate civil actions, retaliatory action by employers prohibited, limitation of actions, Medicaid False Claims Act

Summary

SB367 creates the Alabama Medicaid False Claims Act to hold false Medicaid claims accountable with treble damages, civil penalties, and whistleblower protections, while giving the Attorney General and private citizens enforcement powers.

What This Bill Does

It establishes the Alabama Medicaid False Claims Act to pursue fraud in the Medicaid program. It imposes civil penalties per false claim (between $5,500 and $11,000, adjusted for inflation) plus three times the damages to the state and investigation costs. It allows the Attorney General and private individuals to investigate and file civil actions, with provisions for how actions progress and how recoveries are shared. It also bans employer retaliation against employees who disclose information or participate in investigations and sets time limits for lawsuits.

Who It Affects

• Medicaid providers, contractors, or others who submit false or fraudulent claims or records relating to Alabama Medicaid, who would face penalties, treble damages, and repayment of costs.
• Private individuals (often whistleblowers) who report false claims or file suit can participate in enforcement, may receive a portion of any recovery, and are protected from retaliation by employers.

Key Provisions

• Creates the Alabama Medicaid False Claims Act with definitions of key terms and provides for treble damages plus civil penalties (per-claim penalties of $5,500–$11,000, adjusted for inflation) and recovery of costs.
• Authorizes the Attorney General and private individuals to investigate and bring civil actions in the state's name, with procedures for complaint sealing, potential state intervention, and sharing of proceeds (private claimants may receive 15–25% if the state prosecutes, or up to 10% if the information disclosed drives the case; if the state does not proceed, 25–30%).
• Prohibits employer retaliation against employees who report information or participate in investigations, and provides remedies such as reinstatement, back pay, and attorneys’ fees.
• Sets time limits and procedural safeguards for actions (limitations on when suits can be filed, venue rules, standard of proof, discovery protections, and related provisions).

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

Subjects

Fraud