NEWS RELEASE: Senator Moody Targets Health Care Fraudsters, Pushes Tougher Penalties

WASHINGTON, D.C.-Senator Ashley Moody is targeting health care fraudsters and pushing for tougher penalties to bring criminals to justice with the introduction of her Punishing Health Care Fraudsters Act. This legislation will enhance harsher financial and criminal penalties for health care fraud.

Senator Ashley Moody said, "For too long, the American taxpayer has been abused at the hands of criminals who bilk weaknesses in our laws and leaders that won't bolster enforcement. I applaud the White House for creating a new Assistant Attorney General position to investigate this deep-rooted fraud. The fraud that has been exposed in recent weeks is a cancer that undermines trust and stability in critical programs, steals resources from those who truly need them, and raises the cost on consumers. The recently uncovered instances of health and social services fraud in Minnesota have been further proof of just how pervasive this threat is, and my Punishing Health Care Fraudsters Act sends a clear message that we will protect the American taxpayer."

Last month, reports came to light that at least $9 billion billed across 14 Medicaid services in Minnesota may be fraudulent. In Minnesota, fraudsters, a vast majority of which are of Somali descent, created fly-by-night shell companies that scammed state and federal programs. The perpetrators used their ill-gotten gains for trips abroad, luxury vehicles and lavish lifestyle items. One report even stated that "the largest funder of [terrorist group] al-Shabaab is the Minnesota Taxpayer." Senator Moody's bill would enhance federal penalties for the fraudsters that are destroying our generous social safety net, including many of the Somali criminals in Minnesota.

The Punishing Health Care Fraudsters Act increases the maximum federal prison time and fines that can be ordered for health care fraud cases:

• The maximum prison time for general health fraud (concerning public programs, state programs, and any private insurance/health benefits program) is increased to 25 years (from 10 years). The maximum time for the more serious charge involving bodily injury is increased to 30 years (from 20).

• For defrauding federal health programs, including state plans, penalties are increased from $100,000 to $250,000 and the maximum prison time is increased from 10 years to 25 years. The financial penalty for false statements, concealment, fraudulently using another's information, fraudulently claiming physician services, etc. is raised from $20,000 to $100,000. For soliciting, receiving, or paying out an illegal kickback connected to such fraud, the penalty is increased from $100,000 to $250,000. For Medicare providers that repeatedly and knowingly commit fraud, the penalty is increased from $4,000 to $100,000, and the max prison time is increased from 6 months to one year.

• The United States Sentencing Commission is directed to review and amend its guidelines/policy statements to reflect changes made by this bill. The Commission must also consider the increasing severity of health fraud.

Read full bill text here.

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