Client Alert: Fraud/Abuse Penalties Proposed to Double

    compliance alert 072616Healthcare fraud and abuse enforcement is still at center stage as a huge money maker for the government.  The government is making $8 for every dollar they spend in this area. As such, it should come as no surprise that the Department of Justice (“DOJ”) issued an Interim Final Rule on June 30, 2016 that doubles the amount of penalties under the False Claims Act (“FCA”) and the Anti-Kickback Statute (“AKS”).

    The current penalties range from $5,500 – $11,000 per false claim. However, effective August 1, 2016, FCA penalties will increase from a minimum of $10,781 per claim to a maximum of $21,563 per claim and the AKS penalties will increase to $21,563 per occurrence. The DOJ has allowed a comment period that will end on August 29, 2016; however, absent some change by congress, these penalties under the FCA and AKS will double.

    For more information and/or to get specific information about how to submit a written comment, see federal register at https://www.federalregister.gov/articles/2016/6/30/2016-15528/civil-monetary-penalties-inflation-adjustment

     

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    The information presented herein reflects general information that is current as of the date it was first published.  In light of changes that may occur in the health care regulatory and compliance environments, the author’s presentation of this information might become outdated.  Please check with your individual legal and/or compliance advisor(s) prior to taking any significant actions based upon the information and advice presented.