New York would offer rewards for documented Medicaid fraud tips

A seven-member state board would review reward applications and decide who qualifies and how much to pay. Individuals could qualify for reporting crimes knowingly committed with intent to illegally obtain Medicaid benefits or payments. A documented tip must lead to a closed fraud case and a guilty plea or criminal conviction. The board would set eligibility rules and minimum and maximum rewards. The board would adopt procedures to protect tipsters' identities, including personal and banking information. The board provisions would take effect 90 days after the bill becomes law. The board would meet at least twice a year.

The state would place 1% to 2% of money recovered through Medicaid fraud enforcement in a fund used only for approved tip rewards. The funding rule would cover all money the state recovers through Medicaid fraud enforcement, including seized assets and court-ordered repayments. The fund could also receive money set aside by law or transferred from other lawful sources. Payments would require the reward board's approval. The fund provisions would take effect 90 days after the bill becomes law.