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Several states have their own version of the False Claims Act. Often these laws are very similar to the Federal False Claims Act, but apply to different instances of fraudulent activity. The Federal and State governments are set up similarly, but they contract private individuals for varying supplies and services. Obviously state governments never contract for defense products, but they can employ private citizens for other services.
The number of states with their own False Claims Act is ever expanding and currently includes: California, Delaware, District of Columbia, Florida, Georgia, Hawaii, Illinois, Indiana, Louisiana, Massachusetts, Michigan, Montana, New Hampshire, New Mexico, New York, Nevada, Oklahoma, Tennessee, Texas and Virginia.
1. States' False Claims Acts were enacted to close specific loopholes. For instance, Medicaid funding comes from both Federal and State taxes. When an individual or corporation defrauds the Federal government in services paid for by Medicaid, a Federal case can recover the funds the Federal government has paid. However, this does not recover funds from State taxes.
2. The Federal Government has enacted legislation to reward states that prosecute fraud and false claims cases. With this legislation, states that have robust False Claims Act laws can increase the amount of Federal funds they receive for their health programs. Therefore, they have an incentive to strongly prosecute any fraud cases that come up.
3. Although similar to Federal False Claims Act cases, State False Claims Act cases need to be handled differently. One of the most important aspects in winning a case at different levels is to remember who you are dealing with. State courts work with different standards and practices than Federal courts, and this is often difficult for untrained individual. It is important to retain experienced attorneys to handle your case. |
