New Law Elevates Medicaid Fraud Penalty From Misdemeanor to Felony

Recently signed legislation (Public Act 098-0354) in Illinois authorizes the Illinois Department of Healthcare and Family Services to charge perpetrators of Medicaid fraud with a felony as opposed to the previously mandated misdemeanor.

Any individual or institution that “knowingly and willfully” engages in fraudulent conduct or makes false statements in “the provision of health care or related services, is guilty of a Class 4 felony,” according to the legislation, which was first introduced in the Illinois House in January.

In addition to increasing the punishment for Medicaid fraud, the new law expands the definition of fraudulent Medicaid behavior to include ...