Potential liability for false claims to state and local governments.
The federal False Claims Act (FCA) gets significant attention from entities that receive federal funds and benefits because it allows the U.S. Department of Justice and private citizens, acting as qui tam relators, to sue to recover up to treble damages for false claims to government agencies. However, a growing number of states (and several municipalities – including Chicago, New York, and Philadelphia) also have FCA laws that impose liability for false claims made to state and local governments.
Federal law permits states with qualifying FCA laws to obtain an increased share of damages recovered through claims involving fraudulent Medicaid spending. More than twenty states currently have laws that meet the qualifications to receive this federal incentive. Several more have statutes that, while not qualifying for the incentive, do permit some form of false claim recovery. The Office of the Inspector General for the U.S. Department of Health and Human Services (HHS-OIG) maintains a list of states with FCA laws that it has reviewed.
Many state FCA statutes allow enforcement by both state attorneys general (AG) and private qui tam relators, uniquely situating Husch Blackwell to help clients facing potential suits. Our integrated team includes federal FCA litigators with a thorough understanding of the FCA and its qui tam provision, and our State Attorneys General Practice adds exceptional knowledge and strong relationships with State AG offices to help us effectively represent clients in this emerging area.