Louisiana House Bill HB89

Louisiana 2016 1st Special Session

• Introduced: 2/18/16
• Refer: 2/18/16
• Report Pass: 2/23/16
• Engrossed: 2/26/16
• Refer: 3/4/16

Caption

Provides relative to uses of monies dedicated to the Medical Assistance Programs Fraud Detection Fund (Item #7) (RE SD EX See Note)

Impact

The bill retains the provision that funds from the Medical Assistance Programs Fraud Detection Fund cannot be used as a substitute for state general funds allocated to the Department of Health and Hospitals (DHH) or Medicaid operations. The amendment introduces a mandate for DHH to reimburse the legislative auditor for costs incurred during specific audits, signifying a shift toward enhanced accountability and transparency in financial oversight related to healthcare expenditures.

Summary

House Bill 89 aims to amend the existing framework governing the Medical Assistance Programs Fraud Detection Fund. This legislation identifies specific functions for which the funds can be used, including the validation of claims data from managed care organizations, analysis of claim integrity, and review of actuarial methods. By clarifying these functions, the bill seeks to enhance the efficiency and effectiveness of fund utilization in combating fraud within the healthcare system.

Sentiment

The general sentiment regarding HB 89 appears neutral to positive, as it seeks to improve the operational integrity of Medicaid programs without imposing additional burdens on state finances. The legislation was passed unanimously in the House, which indicates broad bipartisan support and a collective agreement on the importance of safeguarding public funds against fraud and malpractice in healthcare management.

Contention

While the bill seems to garner support for its intent to combat fraud, there may be concerns from various stakeholders about how effectively the fund will operate post-amendment. Discussions around the use of taxpayer money and the need for rigorous auditing may bring to the forefront the importance of ensuring that oversight mechanisms are not only implemented but are also capable of delivering the desired outcomes in terms of fiscal responsibility and fraud prevention.