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Committee advances bill to bar hiring of people convicted of certain out-of-state crimes in Medicaid settings
Summary
The committee reported HB 414 as amended after attorneys from the attorney general's office said the measure closes a loophole that allowed individuals with out-of-state convictions to be hired in Medicaid settings; the prohibition applies prospectively and includes technical amendments on background checks and effective dates.
The Senate Health and Welfare Committee on May 13 reported House Bill 414 as amended. The legislation, presented to the committee with input from the attorney general's office, would prohibit Medicaid providers from hiring individuals convicted of certain enumerated crimes in other states when those crimes are substantially similar to disqualifying offenses under Louisiana law.
Chief Deputy Attorney General Larry Freeman said the proposal grew out of work by the Medicaid fraud unit that found people convicted in other states could be hired here because existing law did not always recognize out-of-state convictions. "We wanted to tighten that loophole up," Freeman said, explaining the changes were vetted with stakeholders and the AG's office.
Matthew Stafford, director of the attorney general's Medicaid fraud unit, described cases in which people hired from other states had lengthy criminal histories not reflected in Louisiana records and in some cases later committed abuse or fraud. "This kind of closes a gap in the law," Stafford said, adding that the change is primarily prospective: if someone already employed has an out-of-state conviction they would not automatically be removed, but they would be ineligible for rehire after separation.
The committee adopted three amendment sets to separate effective dates, to enable LDH to continue necessary federal fingerprint-based checks, and to address delays that have slowed hires for direct support professional positions. The sponsor and witnesses emphasized the bill is subject to appropriation and that LDH is working on implementation details, including whether third-party vendors could be used for background checks.
Where it stands: HB 414 was reported as amended and will advance to the Senate floor. Committee members authorized staff to make technical corrections between committee and floor to reflect the agreed amendments.
