S 10681

        STATE OF NEW YORK
________________________________________________________________________
                                  10681
            IN SENATE
                             August 14, 2026
                               ___________
Introduced  by  Sen.  MURRAY -- read twice and ordered printed, and when
  printed to be committed to the Committee on Rules
AN ACT to amend the public health law and  the  state  finance  law,  in
  relation to establishing a Medicaid fraud tip board and Medicaid fraud
  tip reward fund
  The  People of the State of New York, represented in Senate and Assem-
bly, do enact as follows:
1  Section 1. The public health law is amended by adding a new section 37
2to read as follows:
3  § 37. Medicaid fraud tip board. 1. For the purposes of  this  section,
4"Medicaid  fraud"  shall  mean  the knowing commission of any crime with
5intent to illegally receive benefits, or reimbursement from the  medical
6assistance for needy persons program established and administered pursu-
7ant to this chapter, the social services law and federal law.
8  2.  There  is  hereby established the Medicaid fraud tip board for the
9purpose of developing and  administering  a  system  to  offer  monetary
10rewards  to individuals whose documented tips have resulted in the clos-
11ing of a Medicaid fraud case and a guilty plea  or  criminal  conviction
12against a person or entity that is engaging in, or has engaged in, Medi-
13caid fraud.
14  3.  The  board  shall  consist  of  seven  members  to be appointed as
15follows:  two appointed by the governor; one appointed by the lieutenant
16governor; one appointed by  the  majority  leader  of  the  senate;  one
17appointed  by the speaker of the assembly; one appointed by the minority
18leader of the senate; and one appointed by the minority  leader  of  the
19assembly.
20  4.  Meetings  of the board shall be held at least twice a year but may
21be held more frequently as deemed necessary. At each meeting, the  board
22shall  review pending reward applications and determine reward eligibil-
23ity and amount, if applicable.
24  5. The board shall:
25  (a) develop and adopt guidelines used to determine whether an individ-
26ual is eligible to receive a reward;
27  (b) establish minimum and maximum reward payment amounts; and
 EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                      [] is old law to be omitted.
                                                           LBD16284-01-6
S. 10681  2
1  (c) establish procedures to preserve the anonymity of  any  individual
2alleging Medicaid fraud, which shall include, but not be limited to, the
3protection  of any personally identifying information and banking infor-
4mation.
5  6.  Rewards  approved  by  the board pursuant to this section shall be
6paid from the Medicaid fraud tip  reward  fund  established  in  section
7ninety-seven-bbbbb of the state finance law.
8  § 2. The state finance law is amended by adding a new section 97-bbbbb
9to read as follows:
10  §  97-bbbbb. Medicaid fraud tip reward fund. 1. There is hereby estab-
11lished, in the joint custody of the comptroller and the commissioner  of
12taxation and finance a fund to be known as the Medicaid fraud tip reward
13fund.
14  2.  Such fund shall consist of not less than one percent nor more than
15two percent of all moneys recovered by the state through Medicaid  fraud
16enforcement, including but not limited to, through civil forfeiture or a
17court's award of restitution, and all other moneys appropriated, credit-
18ed or transferred thereto from any other fund or source pursuant to law.
19  3. Moneys of the Medicaid fraud tip reward fund shall be solely avail-
20able for the payment of eligible individuals in accordance with determi-
21nations  made by the Medicaid fraud tip review board pursuant to section
22thirty-seven of the public health law.
23  4. Moneys in the Medicaid fraud tip reward fund shall be kept separate
24from and shall not be commingled with any other moneys in the custody of
25the comptroller or the commissioner of taxation and finance.
26  § 3. This act shall take effect on the ninetieth day  after  it  shall
27have become a law. Effective immediately, the addition, amendment and/or
28repeal  of  any  rule  or regulation necessary for the implementation of
29this act on its effective date are authorized to be made  and  completed
30on or before such effective date.