False Claims Proposal Will Hurt Business and Health Care

Business groups, health care providers, and PCCJR issued warnings this month that a component of a multi-bill legislative package intended to reduce Medicaid Fraud might sound good but stands to benefit trial lawyers more than taxpayers.

“The General Assembly needs to fully understand the impact of passing a state-based False Claims Act before it is seduced by the siren song of enhanced recovery money for Medicaid fraud and non-fraudulent claims,” said Curt Schroder, PCCJR’s executive director. “Simply put, Pennsylvania will recover less money under a state False Claims Act than it would if it continues to allow cases to be brought under the federal False Claims Statute.”

By incentivising bounty hunting plaintiffs’ and their attorneys with a double recovery, those contracting with the state will be subject to frivolous and abusive lawsuits under a state False Claims Act.

The Pennsylvania Chamber of Business and Industry said the bill would negatively impact the state business climate and economy. The Hospital and Healthsystems Association of Pennsylvania (HAP) stated that an unnecessary and duplicative state false claims act could threaten care for Pennsylvania patients.

To learn more about the harmful impacts of a False Claims Act, listen to this broadcast of the Lincoln Radio Journal featuring PCCJR Executive Director Curt Schroder, Rebecca Oyler of NFIB PA, and David Taylor of the Pennsylvania Manufacturers’ Association.

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