SENATE BILL No. 1622

 

 

November 6, 2008, Introduced by Senator JELINEK and referred to the Committee on Appropriations.

 

 

 

     A bill to amend 1977 PA 72, entitled

 

"The medicaid false claim act,"

 

by amending sections 7 and 12 (MCL 400.607 and 400.612), section 7

 

as amended by 1984 PA 333.

 

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

 

     Sec. 7. (1) A person shall not make or present or cause to be

 

made or presented to an employee or officer of this state a claim

 

under the social welfare act, Act No. 280 of the Public Acts of

 

1939, as amended, being sections 400.1 to 400.121 of the Michigan

 

Compiled Laws 1939 PA 280, MCL 400.1 to 400.119b, upon or against

 

the state, knowing the claim to be false.

 

     (2) A person shall not make or present or cause to be made or

 

presented a claim under the social welfare act, Act No. 280 of the

 

Public Acts of 1939, which 1939 PA 280, MCL 400.1 to 400.119b, that

 


he or she knows falsely represents that the goods or services for

 

which the claim is made were medically necessary in accordance with

 

professionally accepted standards. Each claim violating this

 

subsection shall constitute is a separate offense. A health

 

facility or agency shall is not be liable under this subsection

 

unless the health facility or agency, pursuant according to a

 

conspiracy, combination, or collusion with a physician or other

 

provider, falsely represents the medical necessity of the

 

particular goods or services for which the claim was made.

 

     (3) A person shall not knowingly make, use, or cause to be

 

made or used a false record or statement to conceal, avoid, or

 

decrease an obligation to pay or transmit money or property to the

 

state pertaining to a claim presented under the social welfare act,

 

1939 PA 280, MCL 400.1 to 400.119b.

 

     (4) (3) A person who violates this section is guilty of a

 

felony , punishable by imprisonment for not more than 4 years , or

 

by a fine of not more than $50,000.00, or both.

 

     Sec. 12. (1) A person who receives a benefit which that the

 

person is not entitled to receive by reason of fraud or making a

 

fraudulent statement or knowingly concealing a material fact, or

 

who engages in any conduct prohibited by this statute, shall

 

forfeit and pay to the state a civil penalty equal to the full

 

amount received, and for each claim a civil penalty of not less

 

than $5,000.00 or more than $10,000.00 plus triple the amount of

 

damages suffered by the state as a result of the conduct by the

 

person.

 

     (2) A criminal action need not be brought against the person

 


for that person to be civilly liable under this section.