It’s budget season in Pennsylvania, which means that politicians are grasping at any loose straws they can find to painlessly raise revenue without raising taxes. Regardless of a proposal’s shortcomings, if it makes a good sound bite, it will be pushed as a potential revenue generator for the state. Such is the case with a proposed state False Claims Act. Unfortunately, like its very name, claims that it will fill the current revenue gap needed to pass a budget are false.
Simply put, a False Claims Act (FCA) allows individuals to bring lawsuits against businesses and health care providers on behalf of the government in the name of rooting out Medicaid waste. On the surface, it sounds like a good idea — allow a person to file suit and recover misspent dollars for the state. In fact, a news article with a headline posing the question: “False Claims Have Brought in Millions – Why Hasn’t it Passed PA?” has appeared in numerous news outlets across the state. But a deeper dive into the details and repercussions of the policy reveals the reason why.
Implementing a state FCA is not the right move for Pennsylvania. While masquerading as a good government reform bill, it really is just a huge gift to the trial bar and plaintiffs’ attorneys who are constantly seeking to expand liability in the Commonwealth for their own financial gain. It’s reasonable to ask, what’s in it for the relators (the private plaintiff/bounty hunter who filed the case)? Why would they go through the trouble...
J&J Unit Targets $1.6B False Claims Award A J&J unit will try to convince the Third Circuit to throw out a verdict — and a record $1.6 billion judgment — seeking to hold it responsible for ...