Corporate Compliance

Tools to help states recoup more from False Claims Act litigation

Compliance Monitor, February 15, 2006

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Under the Deficit Reduction Act of 2006 the federal False Claims Act was expanded to allow states to enact their own False Claims Acts, which can bring increased recovery amounts if their act is as strong as the one enacted by the federal government, according to the Taxpayers Against Fraud Education Fund.

For example if a state's federal matching rate was 57%, it would only receive 43% of the amount recovered. However, if the state enacts a False Claims Act meeting the government's standard it would receive 53% of the recovered amount.

In addition, the government also enacted another new provision that requires facilities that receive Medicaid payments of or exceeding $5 million to include the provisions of the False Claims Act and the rights of whistleblowers in its employee handbook.

For more information go to http://www.taf.org.



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