Categories: Pennsylvania News

Pennsylvania lawmakers pass bill to go after Medicaid fraud

HARRISBURG, Pa. (WHTM) — Just days after a federal suit alleged a Pennsylvania woman defrauded more than $1 million in a home care fraud kickback scheme, lawmakers moved to combat Medicaid fraud.

House Bill 1697 strikes a balance,” said Rep. Frank Burns (D-Cambria County). “It deters fraud without burdening honest businesses.”

Burns sponsored the bill, which passed the House Wednesday, that would let Pennsylvania claw back stolen state money and protect whistleblowers who tip authorities.

In his co-sponsorship memo, Burns said the state was the largest in the nation without a false claims law that allowed the attorney general to go after such fraud.

“I’m actually more interested in the deterrence effect,” said Rep. Bryan Cutler (R-Lancaster County). “The deterrence effect is having literally thousands of eyes on those charges.”

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A former X-ray technician, Cutler said fraudulent upcharging is easy to do but hard to spot.

“They were sending nurse’s aides, but charging RN rates,” Cutler recounted a case of fraud. “Unless you have somebody inside who blows the whistle on that, they’re not going to come out.”

House Minority Leader Jesse Topper (R-Fulton/Bedford) said he voted no on the bill.

He likes the concept, he said, but worries that a medical professional could make an innocent coding error and end up in legal trouble.

However, Burns said nobody who makes an honest mistake will be held liable under the bill.

The bill passed in bipartisan fashion, just a week after entering committee. That’s almost unprecedented speed in today’s legislature.

“There should be no constituency and no political party for fraud and fraud, whether it’s done by the big fat cats and fancy cars, or whether it’s done by individuals,” said Majority Leader Matt Bradford (D-Montgomery County). “There simply is no acceptance for welfare fraud.”

The bill now heads to the Senate for consideration.

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