Louisiana House Bill HB258

Louisiana 2016 Regular Session

• Introduced: 3/1/16
• Refer: 3/1/16
• Refer: 3/14/16

Caption

Provides relative to grounds and procedures for denial or revocation of Medicaid provider enrollment and eligibility for health facility licensure (OR SEE FISC NOTE GF EX)

Impact

The bill modifies existing regulations under the Medical Assistance Programs Integrity Law by incorporating penalties for violations such as being found in breach of the Federal False Claims Act or engaging in settlement agreements under applicable fraud-related statutes. By establishing explicit grounds for ineligibility based on past violations, the legislation aims to mitigate the risk of fraudulent activities within the Medicaid system and fortify the screening process for healthcare providers seeking to enroll or renew their licenses.

Summary

House Bill 258 focuses on the grounds and procedures for the denial or revocation of Medicaid provider agreements and eligibility for health facility licensure in Louisiana. It aims to enhance the integrity of the state's medical assistance programs by adding specific violations that can lead to the denial or revocation of agreements between healthcare providers and the Department of Health and Hospitals. The bill introduces provisions for dealing with issues related to fraud and false claims submitted under Medicaid programs and similar publicly funded initiatives.

Sentiment

General sentiment surrounding HB 258 appears to support its intentions to safeguard against fraud in state-funded healthcare systems, especially given the emphasis on ensuring that providers meet rigorous standards of integrity. However, there may be concerns from healthcare providers regarding the increased scrutiny and potential implications for their ability to operate if they have any history related to fraud, even if past issues have been resolved after five years.

Contention

Notably, the bill introduces a provision that healthcare providers found liable under the False Claims Act would not be considered to have violated the law until a final judgment is made or a settlement is reached. This may lead to contention regarding the timeliness and adequacy of such reviews, as real-time assessments of provider eligibility could be delayed until after legal proceedings are concluded. Furthermore, the requirement for emergency rules to conduct immediate reviews of all active provider agreements underscores the urgency to maintain a transparent and accountable healthcare system amidst growing concerns about fraudulent practices.