Wisconsin Assembly Bill AB1186

Wisconsin 2023-2024 Regular Session

• Introduced: 4/9/24
• Refer: 4/9/24
• Failed: 4/15/24

Caption

Restoring private individual authority to bring a qui tam claim against a person for making a false claim for medical assistance, actions by the attorney general against a person for making a false claim for medical assistance, and providing a penalty. (FE)

Impact

If passed, AB1186 would bring significant changes to the enforcement of false claims against the Medical Assistance program in Wisconsin. The bill aligns state law more closely with the federal False Claims Act, expanding the definition of qui tam claims and the bases for liability, thereby allowing for a more robust legal framework to address fraud. The intent is to empower citizens to hold wrongdoers accountable while also increasing the state's capability to recover lost funds. Furthermore, it modifies existing laws to enhance the Department of Justice's enforcement powers in these matters.

Summary

Assembly Bill 1186 aims to restore a private individual's authority to bring qui tam claims against individuals making false claims for medical assistance. This authority was eliminated in 2015 by Wisconsin Act 55. Under this bill, private individuals can initiate claims on their own and on behalf of the state, effectively allowing them to act as whistleblowers in instances of fraud against the state. The bill outlines provisions for individuals to receive up to 30% of recovered amounts, emphasizing the incentivization of reporting fraud.

Contention

The restoration of these qui tam rights is expected to provoke diverse responses among stakeholders. Proponents argue that it will reduce corruption in the public assistance program and help recover taxpayer money. Meanwhile, opponents may express concerns regarding the potential for frivolous lawsuits or the burden placed on health care providers. In previous discussions, worries about the balance between encouraging whistleblowing and preventing abuse of the legal system have surfaced, indicating that this bill may face scrutiny during deliberations.