Full Text of HB0071 98th General Assembly
HB0071 98TH GENERAL ASSEMBLY |
| | 98TH GENERAL ASSEMBLY
State of Illinois
2013 and 2014 HB0071 Introduced 1/9/2013, by Rep. Kelly M. Cassidy SYNOPSIS AS INTRODUCED: |
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Amends the Public Assistance Fraud Article of the Illinois Public Aid Code. Provides that (i) any person who knowingly obtains unauthorized medical benefits or causes to be obtained unauthorized medical benefits (rather than knowingly obtains unauthorized medical benefits) with or
without use of a medical card; (ii) any vendor that knowingly assists or knowingly or willfully fails to prevent a person from committing specified violations; or (iii) any person (including a vendor, organization, agency, or other entity) that, in any matter related to the medical assistance program, knowingly or willfully falsifies, conceals, or omits by any trick, scheme, artifice, or device a material fact, or makes any false, fictitious, or fraudulent statement or representation, or makes or uses any false writing or document, knowing the same to contain any false, fictitious, or fraudulent statement or entry in connection with the provision of health care or related services commits medical assistance fraud. Sets forth conduct that constitutes managed health care fraud. Enhances the criminal penalty, from a Class A misdemeanor to a Class 4 felony, for any person, firm, corporation, association, agency, institution, or other legal
entity that, in any matter related to a State or federally funded or mandated
health plan, knowingly and willfully makes a false statement in connection with the provision of health care or related
services. Provides that no person shall willfully obstruct criminal investigations of health care offenses and makes a violation a Class 4 felony. Effective immediately.
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| | | CORRECTIONAL BUDGET AND IMPACT NOTE ACT MAY APPLY | |
| | A BILL FOR |
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| 1 | | AN ACT concerning public aid.
| 2 | | Be it enacted by the People of the State of Illinois,
| 3 | | represented in the General Assembly:
| 4 | | Section 5. The Illinois Public Aid Code is amended by | 5 | | changing Sections 8A-2.5, 8A-13, and 8A-15 and by adding | 6 | | Section 8A-18 as follows:
| 7 | | (305 ILCS 5/8A-2.5)
| 8 | | Sec. 8A-2.5. Unauthorized use of medical assistance.
| 9 | | (a) Any person who knowingly uses, acquires, possesses, or | 10 | | transfers a
medical card in any manner not authorized by law or | 11 | | by rules and regulations of
the Illinois Department, or who | 12 | | knowingly alters a medical card, or who
knowingly uses, | 13 | | acquires, possesses, or transfers an altered medical card, is
| 14 | | guilty of a violation of this Article and shall be punished as | 15 | | provided in
Section 8A-6.
| 16 | | (b) Any person who knowingly obtains unauthorized medical | 17 | | benefits or causes to be obtained unauthorized medical benefits | 18 | | with or
without use of a medical card is guilty of a violation | 19 | | of this Article and
shall be punished as provided in Section | 20 | | 8A-6.
| 21 | | (b-5) Any vendor that knowingly assists or knowingly or | 22 | | willfully fails to prevent a person from committing a violation | 23 | | under subsection (a) or (b) of this Section is guilty of a |
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| 1 | | violation of this Article and shall be punished as provided in | 2 | | Section 8A-6. | 3 | | (b-6) Any person (including a vendor, organization, | 4 | | agency, or other entity) that, in any matter related to the | 5 | | medical assistance program, knowingly or willfully falsifies, | 6 | | conceals, or omits by any trick, scheme, artifice, or device a | 7 | | material fact, or makes any false, fictitious, or fraudulent | 8 | | statement or representation, or makes or uses any false writing | 9 | | or document, knowing the same to contain any false, fictitious, | 10 | | or fraudulent statement or entry in connection with the | 11 | | provision of health care or related services, is guilty of a | 12 | | violation of this Article and shall be punished as provided in | 13 | | Section 8A-6. | 14 | | (c) The Department may seek to recover any and all State | 15 | | and federal monies for which it has improperly and erroneously | 16 | | paid benefits as a result of a fraudulent action and any civil | 17 | | penalties authorized in this Section. Pursuant to Section | 18 | | 11-14.5 of this Code, the Department may determine the monetary | 19 | | value of benefits improperly and erroneously received. The | 20 | | Department may recover the monies paid for such benefits and | 21 | | interest on that amount at the rate of 5% per annum for the | 22 | | period from which payment was made to the date upon which | 23 | | repayment is made to the State. Prior to the recovery of any | 24 | | amount paid for benefits allegedly obtained by fraudulent | 25 | | means, the recipient or payee of such benefits shall be | 26 | | afforded an opportunity for a hearing after reasonable notice. |
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| 1 | | The notice shall be served personally or by certified or | 2 | | registered mail or as otherwise provided by law upon the | 3 | | parties or their agents appointed to receive service of process | 4 | | and shall include the following: | 5 | | (1) A statement of the time, place and nature of the | 6 | | hearing. | 7 | | (2) A statement of the legal authority and jurisdiction | 8 | | under which the hearing is to be held. | 9 | | (3) A reference to the particular Sections of the | 10 | | substantive and procedural statutes and rules involved. | 11 | | (4) Except where a more detailed statement is otherwise | 12 | | provided for by law, a short and plain statement of the | 13 | | matters asserted, the consequences of a failure to respond, | 14 | | and the official file or other reference number. | 15 | | (5) A statement of the monetary value of the benefits | 16 | | fraudulently received by the person accused. | 17 | | (6) A statement that, in addition to any other | 18 | | penalties provided by law, a civil penalty in an amount not | 19 | | to exceed $2,000 may be imposed for each fraudulent claim | 20 | | for benefits or payments. | 21 | | (7) A statement providing that the determination of the | 22 | | monetary value may be contested by petitioning the | 23 | | Department for an administrative hearing within 30 days | 24 | | from the date of mailing the notice. | 25 | | (8) The names and mailing addresses of the | 26 | | administrative law judge, all parties, and all other |
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| 1 | | persons to whom the agency gives notice of the hearing | 2 | | unless otherwise confidential by law. | 3 | | An opportunity shall be afforded all parties to be | 4 | | represented by legal counsel and to respond and present | 5 | | evidence and argument. | 6 | | Unless precluded by law, disposition may be made of any | 7 | | contested case by stipulation, agreed settlement, consent | 8 | | order, or default. | 9 | | Any final order, decision, or other determination made, | 10 | | issued or executed by the Director under the provisions of this | 11 | | Article whereby any person is aggrieved shall be subject to | 12 | | review in accordance with the provisions of the Administrative | 13 | | Review Law, and the rules adopted pursuant thereto, which shall | 14 | | apply to and govern all proceedings for the judicial review of | 15 | | final administrative decisions of the Director. | 16 | | Upon entry of a final administrative decision for repayment | 17 | | of any benefits obtained by fraudulent means, or for any civil | 18 | | penalties assessed, a lien shall attach to all property and | 19 | | assets of such person, firm, corporation, association, agency, | 20 | | institution, vendor, or other legal entity until the judgment | 21 | | is satisfied. | 22 | | Within 18 months of the effective date of this amendatory | 23 | | Act of the 96th General Assembly, the Department of Healthcare | 24 | | and Family Services will report to the General Assembly on the | 25 | | number of fraud cases identified and pursued, and the fines | 26 | | assessed and collected. The report will also include the |
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| 1 | | Department's analysis as to the use of private sector resources | 2 | | to bring action, investigate, and collect monies owed. | 3 | | (Source: P.A. 96-1501, eff. 1-25-11; 97-23, eff. 1-1-12.)
| 4 | | (305 ILCS 5/8A-13)
| 5 | | Sec. 8A-13. Managed health care fraud.
| 6 | | (a) As used in this Section, "health plan" means any of the | 7 | | following:
| 8 | | (1) Any health care reimbursement plan sponsored | 9 | | wholly or
partially by the State.
| 10 | | (2) Any private insurance carrier, health care | 11 | | cooperative or
alliance, health maintenance organization, | 12 | | insurer, organization,
entity, association, affiliation, | 13 | | or person that contracts to provide or
provides goods or | 14 | | services that are reimbursed by or are a required
benefit | 15 | | of a health benefits program funded wholly or partially by | 16 | | the
State.
| 17 | | (3) Anyone who provides or contracts to provide goods | 18 | | and services to an
entity described in paragraph (1) or (2) | 19 | | of this subsection.
| 20 | | For purposes of item (2) in subsection (b), | 21 | | "representation" and "statement"
include, but are not limited | 22 | | to, reports, claims, certifications,
acknowledgments and | 23 | | ratifications of financial information, enrollment claims,
| 24 | | demographic statistics, encounter data, health services | 25 | | available or rendered,
and the qualifications of person |
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| 1 | | rendering health care and ancillary services.
| 2 | | (b) Any person, firm, corporation, association, agency, | 3 | | institution, or
other legal entity that, with the intent to | 4 | | obtain benefits or payments under
this Code to which the person | 5 | | or entity is not entitled or in a greater amount
than that to | 6 | | which the person or entity is entitled, knowingly , or | 7 | | willfully: executes or
conspires to execute a scheme or | 8 | | artifice
| 9 | | (1) executes or conspires to execute a scheme or | 10 | | artifice to defraud any State or federally funded or | 11 | | mandated health plan in
connection with the delivery of or | 12 | | payment for health care benefits, items, or
services ; , or
| 13 | | (2) executes or conspires to execute a scheme or | 14 | | artifice to obtain by means of false or fraudulent | 15 | | pretense, representation,
statement, or promise money or | 16 | | anything of value in connection with the
delivery of or | 17 | | payment for health care benefits, items, or services that | 18 | | are in
whole or in part paid for, reimbursed, or subsidized | 19 | | by, or are a required
benefit of, a State or federally | 20 | | funded or mandated health plan ; | 21 | | (3) falsifies, conceals, or covers up by any trick, | 22 | | scheme, or device a material fact in connection with the | 23 | | delivery of or payment for health care benefits, items, or | 24 | | services that are in whole or in part paid for or | 25 | | reimbursed by a State or federal health plan; | 26 | | (4) makes any materially false, fictitious, or |
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| 1 | | fraudulent statements or representations, or makes or uses | 2 | | any materially false writing or document knowing the same | 3 | | to contain any materially false, fictitious, or fraudulent | 4 | | statement or entry, in connection with the delivery of or | 5 | | payment for health care benefits, items, or services that | 6 | | are in whole or in part paid for or reimbursed by a State | 7 | | or federal health plan; or | 8 | | (5) makes or uses any false writing or document knowing | 9 | | the same to contain any materially false, fictitious, or | 10 | | fraudulent statement or entry in connection with the | 11 | | delivery of or payment for health care benefits, items, or | 12 | | services that are in whole or in part paid for or | 13 | | reimbursed by a State or federal health plan
| 14 | | is guilty of a
violation of this Article and shall be punished | 15 | | as provided in Section 8A-6.
| 16 | | (Source: P.A. 90-538, eff. 12-1-97.)
| 17 | | (305 ILCS 5/8A-15)
| 18 | | Sec. 8A-15. False statements relating to health care | 19 | | delivery. Any
person, firm, corporation, association, agency, | 20 | | institution, or other legal
entity that, in any matter related | 21 | | to a State or federally funded or mandated
health plan, | 22 | | knowingly and wilfully falsifies, conceals, or omits by any | 23 | | trick,
scheme, artifice, or device a material fact, or makes | 24 | | any false, fictitious, or
fraudulent statement or | 25 | | representation, or makes or uses any false writing or
document, |
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| 1 | | knowing the same to contain any false, fictitious, or | 2 | | fraudulent
statement or entry in connection with the provision | 3 | | of health care or related
services, is guilty of a Class 4 | 4 | | felony A misdemeanor .
| 5 | | (Source: P.A. 90-538, eff. 12-1-97.)
| 6 | | (305 ILCS 5/8A-18 new) | 7 | | Sec. 8A-18. Obstruction of criminal investigations of | 8 | | health care offenses. | 9 | | (a) Whoever willfully prevents, obstructs, misleads, | 10 | | delays or attempts to prevent, obstruct, mislead, or delay the | 11 | | communication of information or records relating to a violation | 12 | | of a federal or State health care offense to a criminal | 13 | | investigator is guilty of a Class 4 felony. | 14 | | (b) As used in this Section, "criminal investigator" means | 15 | | any individual duly authorized by a department or agency of the | 16 | | United States or of this State to conduct or engage in | 17 | | investigations for prosecutions for violations of health care | 18 | | offenses.
| 19 | | Section 99. Effective date. This Act takes effect upon | 20 | | becoming law.
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INDEX
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Statutes amended in order of appearance
| | 3 | | 305 ILCS 5/8A-2.5 | | | 4 | | 305 ILCS 5/8A-13 | | | 5 | | 305 ILCS 5/8A-15 | | | 6 | | 305 ILCS 5/8A-18 new | |
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