On Friday, a Columbus Dispatch editorial endorsed the
creation of Ohio's own False Claims Act by state lawmakers. The
issue gained attention after the recent federal settlement by
CareSource, a Dayton-based managed health care organization.
CareSource paid $26 million to settle a case brought by two
whistleblowers under the federal False Claims Act. Of the total
settlement amount, Ohio will receive $10 million. But the
Columbus Dispatch editorial points out that Ohio would
have received an additional 10 percent if an Ohio False Claims
Act had been in place. The editorial also notes that at least 27
other states have similar acts encouraging whistleblowers to report
waste and fraud to state governments. The Columbus
Dispatch emphasized that reporting fraud and waste in
government programs as well as extra cash for the state are both
incentives to pass an Ohio False Claims Act.
The Columbus Dispatch editorial comes after Ohio Attorney
General Mike DeWine told reporters that he wants Ohio to create its
own False Claims Act. Both the Attorney General and the newspaper
have argued that Ohio should be entitled to collect a larger share
of settlements from any whistleblower lawsuits against fraud. The
push for an Ohio False Claims Act is likely to continue in the
coming months as Ohio looks for ways to increase revenue faced with
a budget deficit. But as a result, health care organizations will
risk stiff penalties from both the federal False Claims Act and the
Ohio False Claims Act if Ohio lawmakers act.
A copy of the Columbus Dispatch editorial can be found HERE.
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