Yesterday, two members of the Ohio General Assembly introduced a
bill to create the Ohio False Claims Act. The bill's sponsors,
Senator Jim Hughes (R-Columbus) and Senator Scott Oelslager
(R-North Canton), noted that the bill is a tool to recover
fraudulent funds and stop waste, fraud, and abuse of Ohio's
financial resources. The bill carries the full support of Ohio
Attorney General Mike DeWine. In a press conference yesterday,
Attorney General DeWine said, "We have to get Medicaid fraud
under control. There is absolutely no reason why Ohio should not
have a False Claims Act."
The bill, introduced as Senate Bill No. 143, would prohibit any
person or entity from making false or fraudulent claims for payment
to the state. Such a law would affect almost anyone doing business
with the state, including health care professionals claiming
reimbursement, government contractors, and grant recipients. The
proposed legislation would allow the Attorney General's office
to issue civil investigative demands to collect information about
potential violations. The civil investigative demand may require
one to produce documents, answer written interrogatories, and/or
give oral testimony regarding potential violations.
The penalties for violating the law would include: triple damages,
a civil penalty ranging from $5,500 to $11,000 for each
violation, and all costs and attorney's fees for bringing an
action to recover the funds. The bill includes, however, lesser
penalties for those who fully cooperate with any state
investigation of a potential violation. These lesser penalties
include double damages as well as all costs and attorney's fees
but do not include the heavy civil penalty. To receive the lesser
penalty, a person or entity must voluntarily provide the Attorney
General's office with all information within thirty days of
learning about the violation and before the person or
entity discovers that an investigation has begun or a civil or
criminal lawsuit is filed. In other words, a person or entity must
voluntarily provide the information on its own initiative and not
on threat of litigation. Full cooperation and disclosure after the
person or entity learns of the investigation will not provide for
the statutory lesser penalties.
The proposed Ohio False Claims Act also contains provisions for
whistleblower civil suits against violators. Whistleblowers stand
to recover anywhere from 10 to 30% of the damages and penalties
collected as well as their attorney's fees and costs from
bringing suit. Whistleblowers would be protected from retaliation
or other discriminatory treatment by their employer under the
proposed law.
A link to the proposed legislation can be found here:
http://www.legislature.state.oh.us/bills.cfm?ID=129_SB_143.
A link to Attorney General DeWine's press release can be found
here: http://www.ohioattorneygeneral.gov/Briefing-Room/News-Releases/April/DeWine-supports-creation-of---whistleblower-protec.
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