New York State Attorney General Eliot Spitzer has asked state lawmakers to pass two bills he says are needed to rein in Mediacid fraud.
One is a state version of the federal false claims act, which would increase civil penalties for fraud and encourage whistle-blowers. The other would create a new category of health care crimes. Spitzer made his request following a series of New York Times articles which highlighted egregious frauds in the state’s Medicaid system.
The proposed state false claims act, like the federal version, allows the state to seek three times the amount of the fraud and also provides for a reward to whistle-blowers who help uncover the fraud.
The New York Times (subscription required) reported on Spitzer’s proposal in its July 21, 2005 issue. Spitzer’s website includes a copy of the letter he sent to Senate Majority Leader Bruno and Speaker Silver.