H.R. 5757, The Medicaid Fraud Reduction Act of 2008

• This item is from the 110th Congress (2007-2008) and is no longer current. Comments, voting, and wiki editing have been disabled, and the cost/savings estimate has been frozen.

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H.R. 5757 would amend title XIX of the Social Security Act to require asset verification through access to information held by financial institutions, to reduce fraud and abuse in State Medicaid programs.

Detailed Summary

Medicaid Fraud Reduction Act of 2008 - Amends title XIX (Medicaid) of the Social Security Act (SSA), for purposes of determining or redetermining an individual's Medicaid eligibility, to direct each state to implement an asset verification program requiring Medicaid applicants or recipients to authorize the state to: (1) obtain records from a financial institution; and (2) use them to verify the individuals' financial resources.

Directs the Secretary of Health and Human Services to provide payments to eligible states to establish and carry out practices to reduce fraud under the state Medicaid program.

Requires the Secretary to report to Congress on the feasibility of, and potential program savings from, implementing an electronic system for verifying asset transfers, particularly of real property, by Medicaid applicants or recipients. Authorizes the Secretary to require states to implement such a system if feasible and cost-effective.

Requires withholding of federal matching payments to states for: (1) failure to implement an asset verification program; and (2) any expenditures other than for compensation of a state employee or payment to a state entity (for instance, expenditures for consultants).

Requires states to submit to the Secretary state plan amendments for creating Internet-based transparency programs to improve public disclosure of Medicaid payments information.

Amends SSA title XI to permit limitations, restrictions, and suspensions of Medicaid eligibility in cases of Medicaid-related civil or criminal fraud or abuse.

Provides for an extended period of one year to recover Medicaid overpayments resulting from fraud or abuse.

Status of the Legislation

Latest Major Action: 4/14/2008: Referred to House subcommittee. Status: Referred to the Subcommittee on Health.

Points in Favor

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Points Against

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