Life Sciences

OIG: Hawaii, Virginia state false claims acts meet DRA incentive requirements

Device Regulation Alert: Safety, Compliance and Reimbursement News, March 26, 2007

The state False Claims Acts in Hawaii and Virginia meet all of the Deficit Reduction Act's (DRA) requirements to qualify for incentives, according to the OIG's review of the states' laws.

The DRA provides financial incentives to states that enact their own False Claims Acts, provided that the state laws meet certain requirements in the DRA to qualify for those incentives. In August 2006, the OIG published a Federal Register notice outlining its guidelines for reviewing the laws and also invited states to request OIG review of their laws.

The OIG has added a section to its Web site specifically devoted to reviewing state false claims acts, and Hawaii and Virginia are the latest states it has reviewed. Previously it had posted reviews of laws from California, Florida, Illinois, Louisiana, Massachusetts, Michigan, Nevada, Tennessee, and Texas. As of January of this year, of those, only the laws in Illinois, Massachusetts, and Tennessee met the all of the DRA requirements.

According to the OIG reviews, the laws that don't meet all DRA requirements can be amended and submitted for review by the OIG again. Go to the OIG Web site to read the reviews.

State and federal false claims acts punish those who submit false or fraudulent claims to the government for reimbursement. It also penalizes anyone who "caused" a false claim to be submitted, such as a device company that encouraged a physician to bill for a use that isn't eligible for reimbursement.

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