CCH® Medicaid — 11/5/08

License revocation for Medicaid fraud

The state officials who participated in the prosecution of a dentist for Medicaid fraud and in the disciplinary proceedings to revoke her license were immune from a civil suit claiming that their actions violated the federal Racketeer Influenced and Corrupt Organizations Act. The administrative law judges who presided over the disciplinary and license revocation hearings were entitled to quasi-judicial immunity regarding their actions in that capacity. The doctrine of prosecutorial immunity shielded the attorneys representing the state agencies in the administrative proceedings arising from the audit of her Medicaid claims, the findings of Medicaid fraud and the disciplinary proceedings and the criminal prosecution. The dentist did not establish violations of her constitutional rights to due process because she was represented by counsel throughout the proceedings. The appropriate standard of proof—clear, convincing and cogent evidence—was applied in the license revocation proceeding. Finally, the federal courts have no power to order removal of the state administrative proceedings to federal court, to disbar attorneys, limit the terms of the disciplinary commission, or otherwise interfere with the state's exercise of police power unless the state action interferes with areas regulated by federal law.

Source: Daniels v. Davis, W.D. Wash., Oct. 21, 2008

For more information on this and related topics, consult the CCH® Medicare and Medicaid Guide.

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