Wednesday, January 26, 2011
 
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Medicaid reform law cracks down on fraud with penalties

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[January 26, 2011]  SPRINGFIELD -- The new Medicaid reforms signed into law on Tuesday will do more than just save money for the state -- they will crack down on fraud by tightening eligibility, levying civil fines and kicking serious infractions to local state's attorneys for prosecution.

Instead of being asked once for a pay stub, Medicaid participants as of July 1 will have to provide proof of a month's worth of income, as well as proof of Illinois residency. Additionally, participants will have to provide verification for continued eligibility as of Oct. 1.

Michelle Saddler, secretary of the Illinois Department of Human Services, said the new requirements are in line with those required for the federal food stamps program. The agency determines eligibility for Medicaid, although the program is administered by the Illinois Department of Healthcare and Family Services.

"This will help us confirm that we are fulfilling Medicaid's purpose of serving low-income families in greatest need," Saddler said.

The reforms will also crack down on the practice of "doctor shopping," as Medicaid participants often hop from doctor to doctor, said state Rep. Patti Bellock, R-Westmont. But moving half of the state's current 2.8 million Medicaid participants into managed care with a primary physician during the next four years should stop that practice.

"We're trying to reform the system so that person now will go back to their regular doctor every month," Bellock said. "If they try to go to another doctor, it will be called an 'edit.' That will go back and that bill will not be paid -- that's what an edit is as far as I understand."

The new law for the first time gives the state some teeth in going after fraud offenders and recouping any losses, with interest. If an administrative hearing finds individuals guilty, they can be fined up to $2,000. More serious cases could be kicked to local state's attorneys for prosecution.

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John Allen, inspector general for the Department of Healthcare and Family Services, told lawmakers in December that his office either recovered money or stopped payments for a total of nearly $100 million in 2009. Additionally, 161 cases of fraud were referred to law enforcement, he said.

However, he said he has no control over whether a local state's attorney will take on the cases.

"We present them to the prosecutor, and we have to take their judgment as to what they're going to pursue or not going to pursue," Allen said.

The tightening of eligibility standards and cracking down on fraud is new to the program, said Julie Hamos, director of the Illinois Department of Healthcare and Family Services. Change is always hard, she said, but it had to be done.

"None of this will be easy," Hamos said. "I will become probably the most unpopular person in Illinois because everybody will protest it."

[Illinois Statehouse News; By MARY MASSINGALE]

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