By Brandon Moseley
Alabama Political Reporter
On Sunday, ‘The Alabama Political Reporter’ talked with Alabama State Representative Jim McClendon (R) from Springville about his bill, The Medicaid Fraud Reduction Act of 2013, HB 110. Rep. McClendon said that HB 110, “Is a very good bill.”
State Representative McClendon said that over the last five years the state legislature has allocated just $4.6 million to investigate Medicaid fraud. That small investment has generated $96 million in savings for the state and the federal government in identified Medicaid fraud. McClendon said the state, “Got a pretty good return,” off of the Medicaid Fraud investigations unit. If passed, HB 110 will double the resource to that office. McClendon said that the federal government is providing the state $750,000 in matching funds for every $250,000 that the state spends on investigating Medicaid Fraud. McClendon said that Medicaid fraud is across the board and involves beneficiaries, providers, and even whole offices. That is why the bill amends the powers of the Medicaid fraud investigations office to also investigate L.L.C.s and corporations. Currently the state is able to go after the individuals involved, but not the corporation as a whole that is perpetuating the fraud. This bill would change that.