SB85 Alabama 2017 Session

Updated Feb 27, 2026

Notable

Summary

Primary Sponsor: Trip Pittman
Republican
Session: Regular Session 2017
Title: Medicaid fraud, crime of further provided for, penalty, made Class C felony, statutes of limitations revised for certain fraudulent activity, Sec. 22-1-11 am'd.
Summary: SB85 strengthens Medicaid fraud penalties by requiring knowingly engaged conduct, expanding liability to corporations, and setting a six-year prosecution limit while preserving federal safe-harbor protections and specific discounts.
What This Bill Does
If passed, the bill requires that someone must knowingly commit the fraudulent conduct in Medicaid claims or kickback/referral schemes to be punished. It treats corporations and other business entities as potential violators. It establishes a six-year window to prosecute these offenses and preserves certain federal safe-harbor exceptions and properly disclosed discounts that are not punishable. It also allows multiple offenses to be charged in one indictment and clarifies when an offense is considered complete (upon Medicaid claim receipt).

Who It Affects
Individuals who knowingly submit false Medicaid claims or knowingly participate in kickbacks/referrals related to Medicaid, who could be charged with a Class C felony and face penalties.
Corporations and other business entities involved in Medicaid referrals, purchases, or pricing arrangements, since the bill defines 'person' to include entities and makes them subject to the same penalties (with certain federal exemptions).

Key Provisions
Guilty only if the conduct is knowingly performed; penalty for false statements or omissions in Medicaid claims is Class C felony with up to $10,000 fine and 1-5 years in prison (offense complete when claim is received by Medicaid Agency or contractor).
Defines 'person' to include individuals, partnerships, corporations, or associations, expanding who can be prosecuted.
Imposes a six-year statute of limitations for prosecuting these offenses.
Maintains exemptions for discounts properly disclosed and reflected in costs claimed, and for employer-paid employee discounts within employment relationships; also preserves federal safe-harbor exceptions (42 C.F.R. 1001.952).
Allows two or more offenses to be charged in the same indictment with separate sentences for each offense.
Addresses local-funding constitutional concerns by excluding the bill from Amendment 621 restrictions due to it creating or amending a crime, with an effective date set after the Governor's 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: Medicaid