Yingling-Backed Legislation Strengthening Penalties for Medicaid Fraud Signed Into Law

HAINESVILLE, Ill. – Tough financial penalties await criminals who defraud Medicaid and steal from taxpayers under a new law passed by state Rep. Sam Yingling, D-Grayslake. The measure is part of Yingling’s ongoing effort to combat fraud, protect tax dollars and ensure state programs operate efficiently.

“Scammers target Medicaid because they see it as a low-risk, high-reward opportunity to steal from hard-working taxpayers, and only tough penalties that remove the incentive for fraud will change this,” Yingling said. “By making the penalty for Medicaid fraud greater than the possible reward, this law is an important step toward discouraging criminal schemes, protecting taxpayers and ensuring benefits are going only to those who need them the most.” 

Senate Bill 1330 – which Yingling supported in the House – strengthens civil penalties for Medicaid providers and alternate payees who knowingly make false statements or use fraudulent records to obtain payments or other Medicaid benefits, subjecting scammers to fines between $10,000 and $50,000. Previously, civil penalties were based on the amount of the overpayment, plus a $2,000 fine for each false statement. The measure received bipartisan support and was signed into law this week.                     

As Medicaid fraud costs Illinois taxpayers hundreds of millions of dollars annually, Yingling is leading an effort to crack down on abuse of the system. Yingling sponsored House Bill 71 earlier this year, which expands the scope of Medicaid fraud laws by allowing any person, vendor, organization, agency or other entity that knowingly helps someone obtain unauthorized public medical benefits to be charged with fraud. Previously, only the person or entity that received benefits could be charged. The measure was backed by the Illinois State Medical Society, and was signed into law earlier this month. 

“Families throughout our suburban communities are working hard to balance their own checkbooks in the face of an extended economic downturn, and they can’t afford to foot the bill for waste and fraud in public programs,” Yingling said. “Illinois needs to get its fiscal house in order, and cracking down on abuse of state programs is not only an immediate priority, but also an ongoing part of this process.”  

Yingling represents the 62nd District, which contains portions of Gages Lake, Grayslake, Hainesville, Ingleside, the Round Lake communities, Wauconda and Wildwood.