Healthcare Reform Law Changes Encourage Whistleblower Lawsuits
Get Legal Help Today
Secured with SHA-256 Encryption
UPDATED: Jul 16, 2021
It’s all about you. We want to help you make the right legal decisions.
We strive to help you make confident insurance and legal decisions. Finding trusted and reliable insurance quotes and legal advice should be easy. This doesn’t influence our content. Our opinions are our own.
Editorial Guidelines: We are a free online resource for anyone interested in learning more about legal topics and insurance. Our goal is to be an objective, third-party resource for everything legal and insurance related. We update our site regularly, and all content is reviewed by experts.
The Anti-Kickback Statute and Qui Tam Public Disclosure Bar amendments to the new Healthcare Reform Law have a direct impact on whistleblower, or Qui Tam, lawsuits that expose fraudulent activity against the government – especially in the healthcare industry – which Qui Tam attorneys (link to https://secure.attorneypages.com/hot/form_674.htm) say has been subject to some of the largest False Claim Act (FCA) settlements in history. Here’s what the amendments mean:
Anti-Kickback Statute amendments
The following fraud and abuse amendments to the Anti-Kickback Statute of the Healthcare Reform Law provide that:
- Violations do not have to be intentional. An AKS violation may be established without showing that an individual knew of the statute’s prohibitions or intended to violate it.
- Manufacturers may share in the liability. A violation of the statute constitutes a false or fraudulent claim under the False Claims Act – which may affect manufacturers who don’t submit actual claims to the government.
- More healthcare industry violations may be subject to FCA. The beneficiary inducement statute now applies to providers, practitioners, suppliers, health plans and healthcare service entities and may make many health care industry activities subject to False Claims Act violations.
Qui Tam Public Disclosure Bar amendments
The following amendments to the Qui Tam Public Disclosure Bar of the Healthcare Reform Law provide that:
- Public disclosure bar is not jurisdictional. The public disclosure bar has been amended and is no longer jurisdictional and does not require dismissal if the government opposes dismissal.
- Direct knowledge no longer required. The whistleblower, or relator, used to have direct and independent knowledge of the fraudulent activity in order to file a Qui Tam lawsuit according to the original source definition. The amendments now provide that the relator must simply provide the information to the government prior to the public disclosure and that the information must be independent of and materially add to the publicly disclosed allegations.
All of these amendments potentially make filing a whistleblower lawsuit easier – which not only benefit the government, but also the whistleblower.
Whistleblower settlements & verdicts
Whistleblowers generally collect a substantial percentage of what was recovered – and many whistleblowers have collected millions of dollars for their efforts. If you know of fraudulent activity against the government, contact an experienced Qui Tam lawyer to discuss your situation and find out how the whistleblower process works.