Wisconsin Senate Bill SB1092

Wisconsin 2023-2024 Regular Session

• Introduced: 3/18/24
• Refer: 3/18/24
• 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, SB1092 would bring considerable changes to how false claims are addressed under Wisconsin law. It would modernize state statutes to align more closely with federal regulations under the False Claims Act. This shift is expected to incentivize individuals to report fraudulent activities, thus enhancing state resources for detecting and prosecuting fraud against medical assistance programs. By adjusting penalties and giving private parties a stake in the recovery process, the bill could lead to a more aggressive stance against medical fraud in the state.

Summary

Senate Bill 1092 aims to restore an individual's authority to bring qui tam claims against persons making false claims for medical assistance. This legislative effort reverses changes made by 2015 Wisconsin Act 55, which eliminated the right of private individuals to file such claims. The bill allows these individuals to initiate claims both on their own behalf and on behalf of the state, potentially leading to financial repercussions for wrongdoers. Under the proposed legislation, whistleblowers could receive up to 30% of the recovered funds, along with reimbursement for reasonable expenses and attorney fees incurred during the process.

Contention

Some potential points of contention surrounding SB1092 include concerns about the implications of empowering private individuals to prosecute claims on behalf of the state, leading to issues about the adequacy of legal oversight. Critics might argue that allowing private individuals to act in this capacity could lead to frivolous lawsuits, misuse of the judicial process, or an overburdened court system. Moreover, there may be discussions about the appropriateness of the rewards associated with successful qui tam actions, which some may deem excessive. The balance between encouraging reporting fraudulent claims and preventing abuse of the legal process may become a central debate as the bill moves forward in the legislative process.