Health Care Reform Legislation Expands False Claims Act, Whistleblower Cases Expected to Increase

McDermott Newsletters ^ | 03/31/2010 | McDermott, Will & Emery

[Dooderbutt]

Under the new law, a qui tam relator's allegations can now be based on indirect or secondhand information, provided those allegations add to whatever information is already contained in the public domain.

In addition, the amendment in the PPACA provides that a public disclosure resulting from a government report, hearing, audit or investigation must be from a federal government source in order to bar a qui tam relator's claim. Public disclosures in state or local government reports or proceedings will no longer trigger the jurisdictional bar.

Despite their inclusion in a health care statute, these FCA amendments are not limited to qui tam cases involving federal health care programs. These amendments will affect the Public Disclosure Bar for every qui tam defendant.

[Dooderbutt]

I'm sure there's some Legal Beagles out here in FreeRepublic land that can explain what this means? It seems to me that it is lifting restrictions that were placed on whistleblowers in the past? Is that so, and what does it mean in the long run? Is this set up to hurt companies and help attorneys? I'm just wondering if someone could explain - I'm not really up on my "legalese".

Thanks!

[Dooderbutt]

And - I caught it, it seems I'm not much up on my grammar either. The beginning of the first sentence should be:

I'm sure there are some Legal Beagles(...ooops)

[dalight]

Look up "False Claims Act" at Wikipedia..

the Obama bunch may not have thought this one through as much as they might have.

It gives standing to allege fraud against the Feds to many more people and a financial incentive to do it.. and it will not be contained to only Health care providers.

Moreso, you don't need a US Attorney to agree with you but instead you can move on your own. Can anybody say Simulus??? Mmmm..