Committee backs funding boost for Medicaid fraud unit amid tense exchange over credibility

Senate File 2689, known in committee as the Medical Assistance Protection (MAP) Act, would increase state funding for the Attorney General’s Medicaid Fraud Control Unit to expand investigators, attorneys and support staff.

Sponsor Senator Johnson Stewart moved the A4 amendment, which the committee adopted. Nick (director of the Medicaid Fraud Unit) told lawmakers the unit has grown from 32 investigators to a recommended staffing level that would better match rising referrals and a larger state Medicaid budget. He described how federal grants cover 75% of unit funding but come with restrictions about the unit’s investigative scope and separation from program administrators.

“We had about 140 unique referrals when we were 32 people; this federal fiscal year we’ve had over 300 referrals in less than six months,” the director said, arguing the additional staff are needed to pursue provider fraud and protect taxpayer dollars.

During the hearing one senator voiced strong objections to increasing the office’s funding, alleging credibility problems tied to recent prosecutions and campaign contributions; the committee considered rebuttal testimony from the Attorney General’s chief deputy, who highlighted the unit’s record of convictions and recoveries and said the office has testified before Congress and published public information defending its work.

After debate the committee adopted the amendment and recommended the bill to pass and be referred to the Judiciary Committee; a roll call showed the motion passed (6 ayes to 3 noes as recorded). The sponsor said the remainder of the bill would be vetted by Judiciary where additional procedural provisions would be considered.

The committee hearing record shows adoption of the A4 amendment and referral to Judiciary; the bill’s next steps include Judiciary consideration and any additional appropriation language in finance or budget proceedings.