May 16, 2006

Sebelius says new law will crack down on Medicaid fraud
Governor also toughens penalties for leaving scene of accident

Medicaid fraud costs taxpayers money, and to crack down on this crime, Governor Kathleen Sebelius today signed a bill that expands the scope of the current fraud law.

“Medicaid provides health care for poor and disabled Kansans, and that’s a critical lifeline. But we want to make sure providers and patients aren’t taking advantage of our generosity,” said Sebelius. “This new law gives us another tool to use as we seek to prevent and prosecute fraud.”

The measure, HB 2893, expands a crime dealing with Medicaid fraud to clarify that the prohibition against receiving illegal bribes, kickbacks and rebates applies to providers as well as recipients. It also would prohibit agreements to divide or share Medicaid funds illegally obtained, prohibit tracking or selling Medicaid numbers for money or other remuneration, and expands a provision of the crime to cover entities as well as persons.

The penalty for the crime of misuse of public funds is also amended to reflect a graduated penalty structure based on the amount of money involved and a person convicted of misuse of public funds will be prohibited from holding any official position.

Under this law, a new crime of obstruction of a Medicaid fraud investigation is created, and it expands the Kansas Standard Asset Seizure and Forfeiture Act to cover the crime of Medicaid fraud. The new crime will include falsifying, concealing or covering up a material fact or making or causing to be made any materially false writing or document. In addition, the bill amends the asset forfeiture law to expand and clarify property derived from or realized through any proceeds derived from any offense covered.

**The bill also requires every pharmacy claim form, on or after May 23, 2007, to include the prescriber’s unique identification number.

In addition to cracking down on Medicaid fraud, HB 2893 also gives sheriffs greater bargaining power when getting health care services for offenders. The bill requires a health care provider for offenders in custody be paid the lesser of the actual amount billed or the Medicaid rate for health care service provided. The custodial agencies, under agreement with the Kansas Health Policy Authority, would be responsible for the services provided and to communicate that determination along with the remittance advice and payment for services.

This bill will take effect after publication in the statute book.

Governor Sebelius also signed into law today a measure that establishes more severe penalties for leaving the scene of an accident, as well as requiring drivers to use headlights in daylight hours during inclement weather.

HB 2748 makes it a class A, person misdemeanor to leave the scene of an injury accident or accident with property damage in excess of $1000, increases the crime to a severity level 10, person felony to leave the scene of an accident involving great bodily harm, and makes the crime of leaving the scene of an accident involving a death a severity level 9, person felony. Under current law the crime of leaving the scene of an injury accident under any circumstance is only a class A misdemeanor.

The bill also requires headlights to be used during instances when persons and vehicles on the highway are not clearly discernible at a distance of 1,000 feet ahead or when windshield wipers are in continuous use as a result of rain, sleet or snow.

Finally, it extends the issuance of United States Military Veterans’ license plates to owners or lessees of travel trailers.

This bill will take effect after publication in the statute book.

During the 2006 Legislative session, Governor Sebelius has signed 183 bills and vetoed two.

**The release erroneously referred to an earlier version of the bill and not the final version of the bill.