New York bill would use fraud recoveries to fund tip rewards

A seven-member board would review reward requests and decide who qualifies and how much they may receive. The fraud must involve a knowing crime intended to illegally obtain benefits or payment from the state Medicaid program. A documented tip must lead to a case being closed and to a guilty plea or criminal conviction for Medicaid fraud. The board would set eligibility guidelines and minimum and maximum reward amounts, and adopt procedures to protect tipsters’ identifying and bank information. The board would meet at least twice a year and could meet more often.

The state would place part of money recovered through Medicaid fraud enforcement in a separate reward fund. The fund would pay eligible people who report Medicaid fraud. The fund would receive one to two percent of money the state recovers through Medicaid fraud enforcement, plus any other money provided to it by law. The fund could pay only rewards approved by the board. The act would take effect 90 days after it becomes law.