Ohio Governor Mike DeWine signed Senate Bill 315 on Tuesday, enacting a bipartisan law to combat fraud in the state's Medicaid and Supplemental Nutrition Assistance Program (SNAP).
The law stiffens criminal penalties, making fraud involving $750,000 or more a first-degree felony punishable by up to $150,000 in fines and prison time.
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It also requires the state to replace traditional swipable food assistance cards with secure, chip-enabled versions to prevent theft.
Economists Divided on Impact
Federal and state officials pushed for the measures after allegations of multi-billion dollar vulnerabilities in Ohio's assistance systems.
Acting U. S.
Attorney General Todd Blanche said in June that Ohio faces some of the most significant fraud schemes in the country, crippling taxpayer-funded programs.
However, a panel of 13 economists surveyed by Scioto Analysis expressed conflicting views on the law's economic and social effects.
Michael Jones of the University of Cincinnati supported a low-cost verification system, saying it should produce a positive return on investment for Ohio.
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Curtis Reynolds of Kent State University argued that administrative costs could outweigh savings, noting that Medicaid fraud is not a large percentage of total spending.
The economists split evenly on whether the law would negatively affect access to care for individuals with disabilities.
Charles Kroncke of Mount St. Joseph University warned that vulnerable people might be penalized by the fraud prevention program.
Jonathan Andreas of Bluffton University suggested that short-term access reductions could lead to long-term improvements if the law increases Medicaid efficiency.
Andy Welki of John Carroll University noted that confidence in a well-run system promotes greater support.
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The Ohio Department of Medicaid continues investigations, and the full scope of existing fraud remains unquantified.
