Life Sciences

OIG reviews NJ, Wisconsin false claims acts

Pharma Compliance Alert, November 19, 2008

Wisconsin’s False Claims Act meets the requirements set forth in the Deficit Reduction Act of 2005 (DRA) and qualifies the state for an increased False Claims Act recoveries, according to an OIG review.

In a separate review, the OIG determined New Jersey’s False Claims Act does not meet the requirements set forth in the DRA, so the state currently does not qualify for the additional recoveries.

Under the DRA, each state with a False Claims Act that is at least as effective in facilitating and rewarding qui tam actions as the federal False Claims Act in protecting state Medicaid funds is entitled to an extra 10% of fraud recoveries from those actions. For the state to receive the additional money, the OIG must approve the state’s False Claims Act.

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