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Attorney General proposes expansion of Medicaid Fraud unit powers, tweaks to False Claims law
Summary
Attorney General Aaron Ford and Medicaid Fraud Control Unit leaders presented AB 15 to expand civil subpoena powers, align Nevada’s False Claims Act with the federal statute, and add a misdemeanor records offense to aid prosecutions and settlements; a neutral amendment protecting Fifth Amendment rights was accepted.
Attorney General Aaron Ford and staff from the Medicaid Fraud Control Unit (MFCU) presented Assembly Bill 15 to the Senate Committee on Government Affairs, saying the bill would strengthen the unit’s tools to investigate and prosecute Medicaid provider fraud and to protect Medicaid funds.
"This bill provides additional powers to help my office's Medicaid Fraud Control Unit in its mission to combat Medicaid provider fraud and ensure providers are held accountable," Attorney General Aaron Ford said. He described the unit’s recent recoveries — nearly $13.5 million returned to Nevada Medicaid and 38 convictions between July 2021 and June 2024 — to frame the bill’s purpose.
What the bill would do: The sponsors described three main components.
1) Expand civil investigative authority: The bill would broaden existing state subpoena authority (cited at NRS 228.411) to allow interrogatories and sworn testimony during civil investigations — tools similar to federal civil investigative demands used by U.S. Department of Justice attorneys in multistate actions. Senior Deputy Attorney General Jessica Perlick said the change mirrors authorities already used by several other states and would streamline civil investigations and settlements.
2) Conform Nevada’s False Claims Act to the federal statute: Perlick said one word in Nevada law currently differs from the federal False Claims Act (she described Nevada’s term as “maintain” versus the federal “bring”), and the change would preserve Nevada’s conformity with federal law and the resulting federal match on recoveries.
3) Add a misdemeanor records offense: Chief Deputy Andrew Schulke said AB 15 adds a lower‑level misdemeanor option for intentional failure to maintain adequate records, aligning that statute with the broader Medicaid fraud statute (NRS 422.540 and related provisions). He said the misdemeanor level gives prosecutors an additional plea option to resolve cases without pursuing felony charges in every instance.
Neutral amendment and Fifth Amendment protection: Paloma Guerrero of the Clark County Public Defender’s Office testified in the neutral position and said her office’s proposed amendment would preserve defendants’ Fifth Amendment rights by preventing compelled civil subpoenas from being used as the basis for criminal prosecution. Attorney General staff said the amendment was viewed as friendly and would be incorporated.
Committee discussion: Senators asked technical questions about statutory language and the practical effect of the proposed misdemeanor level; MFCU staff said the unit’s caseload focuses on large recoveries and systemic fraud, and that the misdemeanor provision is intended as a negotiation tool rather than to pursue very small claims.
Ending: The committee closed the hearing without a recorded vote. Sponsors said the amendments were accepted and that they would continue to work with stakeholders as the bill moves forward.
