Life Sciences

OIG: New York, Nevada's false claims acts meet DRA incentive requirements

Pharma Compliance Alert, August 15, 2007

The OIG has posted two new state false claims act review letters for New York and Nevada. According to the letters, both states' acts meet the requirements for incentives that are outlined in the Deficit Reduction Act of 2005 (DRA). Since last year, the OIG has been reviewing the state laws to determine if they meet the requirements.

The DRA provides financial incentive for states to enact false claims acts as long as they meet certain requirements. The acts must:

  • Establish liability to the state for false or fraudulent Medicaid claims

  • Contain qui tam provisions that are as effective as those in the federal False Claims Act

  • Contain a requirement for filing an action under seal for 60 days with review by the state attorney general

  • Contain a civil penalty that is at least the amount of the one in the federal False Claims Act

    So far, the OIG has reviewed 13 state false claims acts. To read all of the letters, go to the OIG Web site.

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