Beginning October 1, Maryland officials will be able to recover damages and penalties from those who file false claims against state health plans and programs, including Medicaid, under a new law signed by Gov. Martin O’Malley.

Martin O'Malley

A day after the 2010 Maryland General Assembly wrapped up its session, O’Malley put pen to paper on 170 bills, including the Maryland False Health Claims Act. The measure is expected to recover millions of dollars by cracking down on waste, fraud and abuse in health programs, officials said.

Lt. Gov. Anthony Brown, who led the O’Malley Administration’s efforts to pass the legislation, said the state has “done a great deal this year” to expand health coverage, lower costs and improve care, an effort duplicated nationwide.

“I commend the Maryland General Assembly for their partnership during this legislative session to pass a bill allowing the state to fight fraud, waste and abuse and recover millions of dollars of taxpayer money and another improving the quality of care for our neighbors,” Brown said in a statement.

He thanked the leadership of the General Assembly and O’Malley for putting Maryland “in a better position than most states to implement national health reform and create the jobs that will come with it.”

O’Malley also signed legislation creating the framework for patient-centered medical homes in Maryland, an initiative in place in more than two dozen other states. The primary care model creates a team of health professionals, led by a personal physician, to provide continuous, comprehensive and coordinated care.

The legislation, sent to state lawmakers by O’Malley’s office, will allow the Maryland Health Care Commission to investigate creating a pilot program if it meets the goals outlined by the governor’s office. The bill also empowers the commission to amend state insurance law to allow various partnerships and incentives to take place.

Other bills signed into law included tax credits to businesses and aid to the state’s unemployed, initiatives O’Malley said were paramount this year.

“Our focus this session was, is, and continues to be on creating jobs, protecting jobs, empowering small business, and defending homeownership for Maryland’s families,” the governor said. “In times of great adversity, the people of Maryland have always chosen to make progress. And this year, we’ve chosen a fiscally responsible path for progress that puts our hardworking families first and moves our state forward.”