California False Claims Education and Training
California False Claims Education and Training
Director
ARNOLD SCHWARZENEGGER
Governor
To comply with Federal law the federal Deficit Reduction Act of 2005 (DRA) as amended in 2007 by 6032. To familiarize employees with GDSP False Claims policies and procedures. To provide guidelines for detecting and preventing fraud, waste, and abuse. To ensure GDSP receives continued Medi-Cal and Medicaid funding.
Link: Federal Deficit Reduction Act
Policies
Include information about the Federal and California FCA Whistleblower protections under these laws.
These policies may be updated as needed and subsequent training may be required.
The Genetic Disease Screening Program takes allegations of funding fraud, waste and abuse very seriously!!!
All complaints regarding potential fraud, waste and abuse of program funding are investigated and employees who report these issues will be protected from retaliation. The Genetic Disease Screening Program has procedures for detecting and preventing fraud, waste, and abuse. The Screening Information System (SIS) has a set of checks and balances known as inconsistencies that assure contractors cannot bill inappropriately. There are program standards and guidelines for contractors that provide services included in the contracts and/or vendor agreements.
Enacted in 1863 to combat fraud by government contractors. Used extensively to combat fraud in government health care programs. Amended in 1986 to include non-retaliation (whistleblower) protections.
The False Claims Act establishes liability for any person who KNOWINGLY presents false or fraudulent claims to the US government for payment. The Act includes Qui Tam provisions that allow private citizens (relators) to sue violators on behalf of the government.
Was enacted in 1987 (Govt Code 12650 et. Seq). Was modeled after the Federal False Claims Act. Allows the government or individual (relator) to bring civil actions to recover damages, penalties, and costs when government contractors, vendors or others defraud the government.
Knowingly presents or causes to be presented a false claim to the state. Knowingly makes, uses, or causes to be made or used a false record or statement to get a false claim paid or approved. Conspiring to defraud the state by submitting a false claim or be paid one. Delivering less property to the state than stated in the receipt. Falsifying a receipt for state property. Knowingly buying or taking a pledge of public property from another not authorized to sell or pledge the property. Knowingly benefitting from a false claim to the state. Benefits from an inadvertent submission of a false claim and fails to disclose the false claim within a reasonable time after discovery.
What is Knowingly?
Any person with respect to the information does any of the following:
ignorance of the truth or falsity of the information. 3. Acts in reckless disregard of the truth or falsity of the information.
Proof of specific intent to defraud is not required.
Claims Include:
Any request or demand for money, property, or services made to any employee, officer, agent, contractor, grantee, or other recipient, if any portion of the money, property or services was provided by the state or any political subdivision thereof.
Damages:
Any person violating the CFCA shall be liable to the state for three times the amount of damages the state sustains from the acts of that person. (Government Code 125651 (a)) Not less than $5,000, but no more than $10,000 per claim.
Civil Penalties:
Costs/Attorneys Fees.
The state Attorney General or a prosecuting authority may initiate false claims cases on their own. A prosecuting authority could include the county counsel, city attorney, or other government official in charge of pursuing civil cases. Private citizens (relators) may file actions. Like the federal FCA, Californias False Claims Act allows qui tam actions.
coming forward and aiding the government in pursuing fraud and waste.
and prevails, the AG gets 33% of the recovery. (Government Code Section 12652 (g)). prevails, he/she gets 33%.
If the prosecuting authority takes the case and If the prosecuting authority intervenes in an action initiated by the AG or remains a party in an action assumed by the AG, the prosecuting authority receives a portion of the AGs 33% as determined by the court.
gets between 15% and 33% of the recovery, depending on the relators contribution to the prosecution. The AG or prosecution authority gets 33%.
If the relator brings the case and neither the AG nor the prosecuting authority intervenes, relator receives 25% to 50% of the overall recovery as
the qui tam plaintiff (relator) was clearly frivolous, clearly vexatious, or took action for the purposes of harassment, then the court may award to the defendant reasonable attorneys fees and expenses.
actions initiated by:
subdivision who did not initially utilize internal procedures for reporting. Present or former employees who actively participated in the fraudulent activity.
Whistleblower Protections
The Federal False Claims acts protects whistleblowers who initiate, assist with, or testify for a false claim action. (31 USC
3730(h))
This section protects employees against discharge, demotion, suspension, threats, harassment, or discrimination by the employer because of lawful acts done by the employee in cooperating with the False Claims Act.
Prevents employers from making, adopting and enforcing any rule that would prevent an employee from acting in furtherance of a false claims action. No employer shall discharge, demote, suspend, threaten, harass, deny promotion to, or in any other manner discriminate against an employee because of lawful acts done by the employee in an action filed or to be filed under the CA False Claims Act.
Detailed information regarding the administrative process can be found in: Government code 31 USC 3801 to 3808, this code includes information regarding:
Definitions, Individual liability (up to $5,000 for each fraudulent claim), Hearings and judicial Review, and The right to administrative offset.
Who to Contact
Report any suspected fraud, waste or abuse to either:
Your supervisor or manager, the California Department of Public Health, Deputy Director of the Center For Family Health at (916) 440-7600.
The nature and details of the suspected fraud will be documented in writing. The report will be forwarded to the Deputy Director of the Center for Family Health in the Department of Public Health within 2 days of the report.
The Investigation
Will be initiated by the Department of Public Health. Corrective actions will be taken, if necessary, which may include filing a claim with the Attorney Generals office. All complaints regarding potential fraud, waste and abuse of program funding will be taken seriously.
During FY 2006, the Federal Government won or negotiated approximately $2.2 billion in judgments and settlements, and it attained additional administrative impositions in health care fraud cases and proceedings. The HCFAC account has returned over $10.4 billion to the Medicare Trust Fund since the inception of the program in 1997.
Healthcare Fraud and Abuse Control Program 2006
You can help protect government funds by reporting any suspected fraud, waste, or abuse. The False Claims laws are the single biggest weapon for combating fraud perpetrated by government contractors, vendors and others against the federal and state government.