The American Hospital Association and America's Health Insurance Plans on March 28 filed an amicus curiae brief in ongoing lawsuits — U.S. vs. Supervalu and Safeway — challenging the federal government's interpretation of the False Claims Act ahead of the Supreme Court's hearing of the cases.
The issue at hand is whether a defendant's "objectively reasonable" interpretation of vague statutory language offers a proper defense to the "knowledge" element for liability under the False Claims Act, which imposes liability on those who defraud governmental programs, according to Mintz, a Boston-based law firm.
In the brief, the organizations argue that the government's "erroneous construction and expansion" of the False Claims Act threatens the business activities of every government contractor, hospital and health insurance provider, and grant recipient in the country. They argue it would also steer resources away from AHA and AHIP members' core mission — caring for patients, reducing the cost of care and ensuring a healthy population.
"While AHA and AHIP may not always share the same opinion on matters of litigation and policy, we agree that the current regulatory landscape and construction of the False Claims Act creates an untenable situation for healthcare providers and health insurance providers," the organizations said in a statement. "If the government’s argument is accepted, our members will be forced to spend more on litigation and less on patient care."
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