Information about State False Claims Act
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Most state false claims acts were conceived with the federal False Claims Act in mind. Each provide that qui tam whistleblowers can bring claims on behalf of the state.
It is important to note, however, the significant differences between these state false claims acts.
It is vital for potential whistleblowers to carefully review the specific requirements of each statute.
Below is an overview of how the State False Claims Act works.
As enacted by section 6031 of the Deficit Reduction Act of 2005, section 1909 of the Social Security Act (Act) provides a financial incentive for States to enact false claims acts that establish liability to the State for the submission of false or fraudulent claims to the State’s Medicaid program.
If a State false claims act is determined to meet certain enumerated requirements, the State is entitled to an increase of 10 percentage points in the State medical assistance percentage, as determined by section 1905(b) of the Social Security Act, with respect to any amounts recovered under a State action brought under such a law.
In order for a State to qualify for the incentive under section 1909 of the
Act, the State must have in effect a law that meets the following requirements:
Under section 1909(b) of the Act, OIG is required to determine, in consultation with the Attorney General of the United States, whether a State has in effect a law relating to false or fraudulent claims submitted to a State Medicaid program that meets these enumerated requirements.
The effective date of section 1909 of the Act is January 1, 2007.
On August 21, 2006, OIG published a notice in the Federal Register (71 FR 48552 PDF) that sets forth OIG’s guidelines for reviewing State false claims acts.
Moving forward with a possible qui tam case
If you are aware of an individual person or company that you think may be violating the Federal False Claims Act or a State False Claims Act, you should contact an attorney who can assist you in evaluating your potential claim.
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