LEGISLATIVE SERVICES AGENCY
OFFICE OF FISCAL AND MANAGEMENT ANALYSIS
200 W. Washington St., Suite 301
Indianapolis, IN 46204
(317) 233-0696
iga.in.gov
FISCAL IMPACT STATEMENT
LS 6841 NOTE PREPARED: Dec 30, 2023
BILL NUMBER: HB 1298 BILL AMENDED:
SUBJECT: Attorney General Investigators.
FIRST AUTHOR: Rep. Speedy BILL STATUS: As Introduced
FIRST SPONSOR:
FUNDS AFFECTED:XGENERAL IMPACT: State
DEDICATED
FEDERAL
Summary of Legislation: This bill establishes enforcement departments within the State Medicaid Fraud
Control Unit and the Identity Theft Unit of the Office of the Attorney General.
It provides that an investigator of the department who is designated by the Attorney General as a law
enforcement officer has law enforcement powers that are limited to carrying out the unit's responsibilities.
Effective Date: July 1, 2024.
Explanation of State Expenditures: The bill will increase the workload of the Office of the Attorney
General (OAG) to ensure that investigators complete basic law enforcement training. The OAG should be
able to accomplish this task within existing resources.
Also, the Medicaid Fraud Control Unit (MFCU) and the Identity Theft Unit will have to temporarily adjust
the workload for investigators until training is completed. Currently, the MFCU has 13 attorneys, 33
investigators, 5 auditors/ analyst, and 3 support staff. The MFCU should be able to accommodate the short-
term staffing changes.
Explanation of State Revenues: The state is entitled to a portion of errant benefit claims recovered.
Additional Information - The MFCU investigates cases involving Medicaid providers committing fraud. The
MFCU also investigates cases of physical and/or financial abuse of adults in nursing homes and other long-
term care facilities. It establishes an Enforcement Department within the MFCU and ID Theft Unit as a
criminal justice agency. The bill provides that the investigators shall have all the powers and duties of a law
HB 1298 1 enforcement officer in conducting investigations, or in serving any process, notice, or order connected with
the OAG Enforcement Department. As a result, this could potentially increase the number of investigations
conducted and recoveries collected for the MFCU and the ID Theft Unit.
In FFY 2022, the OAG had a total of 43 Medicaid fraud convictions out of 948 investigations. The MFCU
recovered over $19.5 M. The federal share of the recoveries was $12.9 M and the state share was $6.6 M.
Combined state and federal expenditures for the MFCU was $7.2 M. In FFY 2023, the MFCU recovered over
$64.2 M.
In CY 2022, the OAG recovered over $40.9 M in consumer litigation, settlements, homeowner protection,
ID theft recoveries, solicitation, and real estate fees.
Explanation of Local Expenditures:
Explanation of Local Revenues:
State Agencies Affected: Office of the Attorney General.
Local Agencies Affected:
Information Sources: IC 4-6-10; Indiana General Assembly, Interim Study Committee on Medicaid
Oversight Committee, Attorney General Medicaid Fraud Presentation (November 15, 2023)
https://iga.in.gov/2023/committees/interim/medicaid-oversight-committee; Office of the Attorney General,
2022 Annual Report, https://www.in.gov/attorneygeneral/consumer-protection-division/id-theft-prevention/;
US Department of Health & Human Services, Office of Inspector General, Medicaid Fraud Control Units,
https://oig.hhs.gov/fraud/medicaid-fraud-control-units-mfcu/.
Fiscal Analyst: Corrin Harvey, 317-234-9438.
HB 1298 2