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HB 1402

Maryland Department of Health and Department of Human Services – Public Benefits – Prevention of Waste, Fraud, and Abuse

2025 Regular Session Introduced by Lauren Arikan and 7 co-sponsors

Maryland bill requiring fraud prevention systems across public benefits programs to reduce waste while maintaining recipient access and privacy protections.

Hearing 3/04 at 1:00 p.m. (Appropriations)
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Bill Summary · HB 1402

Legislative bill overview

HB 1402 establishes new requirements for the Maryland Department of Health and Department of Human Services to implement fraud detection, prevention, and recovery procedures for public benefits programs. The bill mandates systematic monitoring, investigation protocols, and penalties to reduce improper payments and unauthorized benefit claims across state assistance programs.

Why is this important

Public benefits fraud directly diverts resources from eligible recipients and increases administrative costs, affecting program sustainability and public trust. Implementation of coordinated fraud prevention across multiple state agencies could recover significant funds but may also impact processing times and eligibility determinations for legitimate applicants seeking assistance.

Potential points of contention

  • Administrative burden and costs: Establishing new fraud prevention infrastructure requires staffing and technology investment, which could offset recovered funds or redirect resources from benefit processing
  • False positive concerns: Aggressive fraud detection systems may incorrectly flag legitimate applicants or beneficiaries, creating barriers to timely benefit access for vulnerable populations
  • Data privacy and sharing: Expanding inter-agency data sharing between Health and Human Services raises questions about information security, individual privacy protections, and potential misuse of personal data
  • Vague enforcement mechanisms: The bill's specific penalties and investigation procedures are unclear without seeing full text, making it difficult to assess proportionality and due process protections

Compiled from official sources — confirm details with the bill’s official record.

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