Corporate Compliance

How much training does the Deficit Reduction Act require?

Health Care Auditing Strategies, June 1, 2006

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Experts say that clarification is needed on the DRA training requirement

Many healthcare experts are advising providers to educate employees about the False Claims Act to comply with the Deficit Reduction Act (DRA), which President Bush signed into law February 8. But if you read the act itself, you won't find any language requiring formal training per se.

"The DRA does not contain specific educational mandates," says Frank Sheeder, a partner with Brown McCarroll, LLP, in Dallas. "But the title of section 6033 is Employee Education About False Claims Recovery. I understand that a specific educational provision that provided many more details was removed in the committee process (when the law was written)."

To comply with the DRA as it is written, healthcare entities that receive $5 million or more in Medicaid payments each year must

  • establish written policies for all employees-including management and any contractor or agent of the entity. The policies must provide detailed information about the False Claims Act, whistle-blower protections, and provisions regarding the entity's policies and procedures for detecting and preventing fraud, waste, and abuse.
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