Neb. Medicaid Fraud Control Unit Up and Running

Nebraska Attorney General Jon Bruning announced recently that the newly formed Medicaid Fraud Control Unit (MFCU) to investigate and prosecute Medicaid provider fraud and patient abuse and neglect has opened its doors.

The MFCU was established under LB 1084, which took effect July 16.

Bruning said, “Establishing this unit was a major step forward in our efforts to combat Medicaid fraud and patient abuse and neglect. Protecting Nebraskans is my top priority and preventing this type of fraud will save valuable tax dollars.”

Federal law requires each state to have an MFCU unless the state receives a waiver. With the passage of LB 1084, Nebraska became the 49th state, along with District of Columbia, to have an MFCU. Nationwide, these units have obtained 5,813 convictions and recovered more than $1 billion since 1997.

The Nebraska MFCU is headed by Senior Assistant Attorney General Mike Rumbaugh and comprised of one assistant attorney general, two auditors, two investigators and two administrative staff. The unit will receive 90 percent of its funding for the first 18 months of its operation from a federal grant.

Following that, the grant will pay 75 percent of its operating costs. It is expected that Nebraska will join the ranks of 37 existing MFCU’s which became self-funding within three to four years of their inception.