The provisions of the bill addressing felony sanctions are the subject of this analysis. The bill would amend various codes as they relate to the punishment for the criminal offense of health care fraud. The bill would modify the circumstances of the offense and enhancement provision. The punishment would range from a misdemeanor to a felony with the punishment level based on the pecuniary value of the payment, in-kind benefit provided, or claim for payment made under a health care program and certain other circumstances.

A first degree felony is punishable by confinement in prison for life or a term from 5 to 99 years; a second degree felony is punishable by confinement in prison for a term from 2 to 20 years; a third degree felony is punishable by confinement in prison for a term from 2 to 10 years; and a state jail felony is punishable by confinement in a state jail for a term from 180 days to 2 years or Class A misdemeanor punishment. In addition to confinement, most felonies may be subject to an optional fine not to exceed $10,000.  A Class A misdemeanor is punishable by confinement in county jail for a term not to exceed one year and in addition to confinement, an optional fine not to exceed $4,000.

Expanding the circumstances for which a criminal penalty is applied is expected to result in additional demands on the correctional resources of the counties or of the State due to an increase in individuals placed under supervision in the community, sentenced to terms of confinement in state correctional institutions, or placed under parole supervision. In fiscal year 2018, 15 people were arrested, 17 were placed on felony community supervision, and fewer than ten were incarcerated. This analysis assumes the provisions of the bill addressing felony sanctions would not result in a significant impact on state correctional populations or on the demand for state correctional resources.