Provides for dedication of revenue and use of monies in the Medical Assistance Programs Fraud Detection Fund. (7/1/26) (EN INCREASE SD RV See Note)
Summary
SB 24 revises Louisiana law governing the Medical Assistance Programs Fraud Detection Fund. The bill changes how money tied to Medicaid-related recoveries, fines, penalties, and sanctions is deposited into and distributed from the fund, while continuing to exclude certain third-party liability and estate recoveries and preserving the amount needed to make the medical assistance programs whole. It also sets a cap on the fund balance at $20 million, with any collections above that amount directed to the medical assistance programs.
The bill restructures the allocation of fund revenues by first ensuring the Medicaid Fraud Control Unit in the Attorney General’s office is fully funded, then dividing the remaining monies between that unit and the Louisiana Department of Health’s program integrity section. It also clarifies that the fund may be used only for specified anti-fraud and program-integrity purposes, including costs of enforcement actions, fraud detection and prevention, rewards for fraud tips, and as a backstop source of revenue if federal policy changes or forecast shortfalls affect the medical assistance programs. The act becomes effective July 1, 2025.
Impact
SB 24 amends R.S. 46:440.1 to redirect and limit the use of revenues collected from Medicaid fraud and related enforcement actions. It affects the Medical Assistance Programs Fraud Detection Fund, the Medicaid Fraud Control Unit within the Attorney General’s office, and the Louisiana Department of Health’s program integrity section by specifying how recovered monies are deposited, capped, and allocated. The bill also reinforces that these funds cannot replace general fund appropriations for ordinary operations and can only be used for designated fraud-detection, enforcement, and contingency purposes.
Sentiment
The bill appears to have been broadly supported and noncontroversial. It passed the Senate 37-0, the House 99-0, and then the Senate concurred 38-0, indicating unanimous approval in both chambers. The absence of committee transcript material suggests there was little recorded public debate or opposition in the available materials.
Contention
No major points of contention are evident in the available record. The main policy choices in the bill are the $20 million fund cap, the requirement to fully fund the Medicaid Fraud Control Unit before other allocations, and the division of remaining monies between the Attorney General’s unit and the Department of Health’s program integrity section. Any potential concern would likely center on how recovered Medicaid-related funds are prioritized and whether the dedicated revenues should be reserved for fraud enforcement versus broader support for medical assistance programs, but no recorded opposition appears in the votes or transcripts provided.