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Committee backs bill to align state False Claims law with federal standards to secure extra Medicaid recoveries
Summary
The committee reported House Bill 560 favorably; the bill revises Louisiana’s False Claims framework to mirror federal provisions required by the Deficit Reduction Act of 2005 so the state can retain an additional share of Medicaid recoveries, according to testimony from the Attorney General’s Medicaid Fraud Control Unit.
The Senate Committee on Health and Welfare voted to report House Bill 560 favorably after prosecutors from the Attorney General’s Office described changes intended to bring the state into compliance with the federal Deficit Reduction Act of 2005 and associated Office of Inspector General (OIG) requirements.
Representative Egan introduced the bill on behalf of the Attorney General and said it would bring state law into closer alignment with the Federal False Claims Act, enabling the state to retain an additional 10% of the federal portion of any Medicaid recovery under the DRA. Matthew Stafford, an attorney with the Medicaid Fraud Control Unit, explained that the bill revises statutory language to remove conflicts with the federal False Claims Act and addresses drafting problems identified by the OIG during prior reviews.
Stafford said the bill explicitly removes a requirement to prove specific intent to defraud in civil False Claims actions (noting the criminal Medicaid‑fraud statute, R.S. 14:70.1, still requires specific intent). He added the bill updates venue language to authorize filing in the Nineteenth Judicial District Court in East Baton Rouge Parish and other proper venues to facilitate enforcement by the Attorney General’s Office.
Stafford told senators the changes reflect a years‑long process and that once the bill is enacted the state will submit the revised statute to the federal OIG for a compliance review; if OIG finds issues it will communicate required changes. Senator Henskins moved the bill be reported favorably and the committee recorded no opposition.
