Takeaway: Over ten years, the Maryland False Health Claims Act has returned $160M to the State. This Digest summarizes each of the 173 matters reported under the Act from 2011 through 2021.
Background of the Act
Maryland is one of 32 states with its own qui tam statute.[1] The Maryland False Health Claims Act of 2010 prohibits the submission of false or fraudulent claims to a State health program, including Medicaid.[2] To enforce the Act, the State may file a civil action within the State.[3] Additionally, the Act allows private citizens (called “relators”) to file suit on behalf of the State.[4]
If the qui tam action leads to a recovery for the State, the relator is entitled to between 15% and 25% of the recovery, depending on the relator’s contributions to litigation.[5] A smaller amount may be awarded if the relator participated in the misconduct or if the government was already aware of the misconduct.[6]
Violators of the Act are liable to the State for: (1) a civil penalty of up to $10,000 for each violation; (2) monetary damages up to three times the amount of damages the State sustained; and, (3) attorney’s fees and court costs.[7] Because the Medicaid program is funded by both the State and federal governments, recoveries for false or fraudulent claims to Maryland’s Medicaid program are shared with the federal government.
Recoveries Reported under the Act
The Maryland False Health Claims Act requires the Director of the Medicaid Fraud Control Unit of the Office...
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