WSR 17-11-087

PROPOSED RULES

[Filed May 19, 2017, 8:45 a.m.]

Preproposal statement of inquiry was filed as WSR 17-05-110.

Title of Rule and Other Identifying Information: Washington Medicaid False Claims Act (FCA) civil penalty adjustment. In adopting FCA, chapter 74.66 RCW, the legislature imposed civil penalties in RCW 74.66.020(1) of "not less than $5,500 and not more than $11,000, plus three times the amount of damages which the government entity sustains because of the act of that person …" for violation of RCW 74.66.020 (1)(a) through (g). In RCW 74.66.020(5), the legislature required that the attorney general adopt a rule to "… annually adjust the civil penalties established in subsection (1) of this section so that they are equivalent to the civil penalties provided under the federal False Claims Act and in accordance with the federal civil penalties inflation adjustment act of 1990."

Hearing Location(s): 2425 Bristol Court, Fourth Floor, Olympia, WA 98502, on June 29, 2017, at 10:30 a.m.

Date of Intended Adoption: July 21, 2017.

Submit Written Comments to: Douglas D. Walsh, Senior Assistant Attorney General, Director, Medicaid Fraud Control Unit, 2425 Bristol Court, Mailstop 40114, Olympia, WA 98504, email dougw@atg.wa.gov, Subject line: Medicaid Fraud Control Unit Rule, fax (360) 586-8877, by June 23, 2017.

Assistance for Persons with Disabilities: Contact Douglas Walsh by 1:00 p.m., June 26, 2017, (360) 586-8872.

Purpose of the Proposal and Its Anticipated Effects, Including Any Changes in Existing Rules: This proposed language complies with legislative direction in RCW 74.66.020(5) to, "annually adjust the civil penalties established in subsection (1) of this section so that they are equivalent to the civil penalties provided under the federal false claims act and in accordance with the federal civil penalties inflation adjustment act of 1990" by changing the civil penalties under Washington's medicaid FCA to reflect inflation adjustments to the federal FCA civil penalties made pursuant to 31 U.S.C. 3729(a), 28 C.F.R. 85.3 (a)(9).

Reasons Supporting Proposal: See Purpose above.

Statutory Authority for Adoption: RCW 74.66.020(5).

Statute Being Implemented: RCW 74.66.020(5).

Agency Comments or Recommendations, if any, as to Statutory Language, Implementation, Enforcement, and Fiscal Matters: No adverse fiscal impact to the state is expected from the proposed rule.

Name of Proponent: Bob Ferguson, Attorney General, governmental.

Name of Agency Personnel Responsible for Drafting, Implementation, and Enforcement: Douglas D. Walsh, Senior Assistant Attorney General, Olympia, Washington, (360) 586-8872.

No small business economic impact statement has been prepared under chapter 19.85 RCW. The agency expects these rule modifications to have no negative small business impact. The proposed modifications to existing rules do not impose any new or additional costs on any business or industry beyond those associated with compliance with existing statutory obligations currently mandated pursuant to chapter 74.66 RCW.

A cost-benefit analysis is not required under RCW 34.05.328. Pursuant to RCW 34.05.328 (5)(a)(i), this agency is not an agency mandated to comply with RCW 34.05.328. Further, the agency does not voluntarily make that section applicable to the adoption of this rule pursuant to subsection (5)(a)(ii), and to date, the joint administrative rules review committee has not made the section applicable to the adoption of this rule. In addition, pursuant to RCW 34.05.328 (5)(b)(iii) and (v), this proposed new rule adopts, without material change, Washington state statutes and/or has content that is explicitly and specifically dictated by statute. See description under Purpose above.

May 8, 2017

Bob Ferguson

Attorney General