Kentucky Bill Introduces False Claims Act with Qui Tam
Jan 5th, 11
Kentucky General Assembly Introduces Bill to Create Medicaid False Claims Act With Qui Tam Provisions
On January 4, 2011, State Senator Tom Jensen (R-London) introduced Senate Bill (SB) 11 pertaining to false claims submitted to Kentucky's Medicaid program. SB 11 was introduced in the Senate Judiciary Committee, a committee chaired by Sen. Jensen, and appears to be on fast-track. According to the bill's sponsor, the bill seeks to create new laws that:
- establish a civil mechanism for the recovery of false or fraudulent claims made against the Commonwealth's Medicaid System
- increase damages and civil penalties against wrongdoers
- delineate mandatory and discretionary activities of the Attorney General
- authorize private litigants to bring claims in the name of the state against wrongdoers and the procedural mechanisms for handling civil actions of this type in the courts
- prohibit retaliation against employees who assist in suits of this type
- establish time limitations for the filing of these suits
Some may view the bill as controversial based upon its "qui tam" provisions. Similar to the federal False Claims Act, the "qui tam" provisions seem to create whistleblower rights that essentially permit private citizens to sue health care providers based upon allegations of submitting false claims to the Kentucky Medicaid program. The private person that initiates the lawsuit may be eligible to receive up to 30% of any recovery.
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