Sep 152016

OIG Prods States To Increase FCA Civil Penalties

Scott D. Stein
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As we previously reported, federal FCA civil penalties were effectively doubled recently due to federal legislation requiring regular re-indexing of penalties to inflation.  Now, CMS is prodding the states to amend their own FCAs to take similar action.

DOJ and HHS-OIG are charged with regularly reviewing state FCAs to determine whether they are at least as effective as the federal FCA in rewarding and facilitating qui tam actions.  States that are deemed compliant receive an extra 10 percent in their share of recoveries in Medicaid fraud cases.  Earlier this week, CMS announced that states will be expected to amend their FCAs to reflect the increased civil penalties now available under federal law.  States will be given two years to bring their FCAs into compliance.

Scott D. Stein

Chicago

sstein@sidley.com

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