Governor Bob Ferguson signed an executive order creating Washington's first Chief Fraud Prevention Officer and establishing a statewide fraud prevention workgroup, according to the governor's office. The workgroup will coordinate fraud prevention efforts across state health and human services agencies.
The Chief Fraud Prevention Officer will oversee fraud prevention, detection, investigation and recovery efforts for the Health Care Authority and the departments of Health, Social & Health Services, Labor & Industries, and Children, Youth & Families.
Governor Ferguson announced he will propose legislation to expand the state's Medicaid False Claims Act to cover all false claims against Washington. Currently, 25 states have False Claims Acts, and Washington is one of only five states with only a Medicaid False Claims Act.
The Public Funds Fraud Prevention & Accountability Workgroup will develop a statewide fraud prevention framework by June 30, 2027, and recommend changes to statutes and regulations, enforcement authority, contractor standards, and whistleblower protections.
The governor directed state agencies to develop fraud prevention trainings for employees, including basic fraud awareness and ethics instruction, advanced training for fraud prevention specialists, and financial crimes training for investigators.
Under the proposed False Claims Act expansion, violators could face liability of up to three times the actual damages sustained by the government, plus civil penalties adjusted for inflation. Enforcement would occur through private whistleblower lawsuits, with individuals reporting fraud receiving a percentage of penalties recovered.