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Four New States Join the “Deficit Reduction Club”

This week, the Office of the Inspector General issued 10 new state false claims act review letters.  Of the 10 reviews, four new states joined the DRA club–California, Indiana, Rhode Island, and Georgia–and the remaining six were denied entry. 

There are now twelve states with qualifying state qui tam/ state false claims statutes:  Virginia, Texas, Tennessee, New York, Nevada, Massachusetts, Illinois, Hawaii, California, Indiana, Rhode Island, and Georgia.   

According to the OIG’s summary:  “As enacted by section 6031 of the Deficit Reduction Act of 2005 (DRA), section 1909 of the Social Security Act (Act) provides a financial incentive for States to enact false claims acts that establish liability to the State for the submission of false or fraudulent claims to the State’s Medicaid program. If a State false claims act is determined to meet certain enumerated requirements, the State is entitled to an increase of 10 percentage points in its share of any amounts recovered under a State action brought under such a law.”

The requirements were published in the federal register as Cook & Kitts, PLLC


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