False Claims Act

BHS427 MODULE 5 CASE
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False Claims Act
The False Claims Act of 1863 offer whistle-blowers rewards for disclosing fraud committed against the US government. This act was enacted in response to the rampant abuses by defense contractors who were supplying the government with Medicaid during the civil war (Carson, 2008). The False Claims Act called on individuals to bring to justice those found defrauding the government. Their role was to bring “qui tam” suits against those found defrauding the government. Under this act, both civil and criminal penalties could be assessed against any individual found guilty of defrauding the government. This act helps in controlling cost associated with Medicaid programs bringing to justice whoever found presenting false claims to the government. In addition, this Act ensured that persons found guilty of defrauding the government paid double the damages they caused the government. Again, defrauders had to pay a fine of $ 2,000 for false claim. This ensured that the government claimed the lost money and controlled cost in Medicaid programs (Carson, 2008).
However, the False Claim Act has had its fair share of challenges. There has not been adequate protection for whistle blowers making them be intimidated by their seniors. Again, not every one supported the False Claim Act citing that rewarding a whistle blower was anti-American as well as anti-democratic and that it could lead to a nation of switches. This has made the government not very effective in controlling cost and limiting fraud and abuse in False Claims (Carson, 2008).
Medicaid Integrity Plan
This plan is aimed at combating Medicaid provider fraud, waste, and abuse. The plan is to safeguard the health and welfare of Medicaid recipients. This program is also to prevent and reduce the fraud and abuses witnessed in the $ 300 billion annual Medicaid program (CMMC, 2008). This plan is made successful through the hiring of contractors who r...