U.S. — Pennsylvania False Claims Act bill to be introduced again

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From the PennRecord news item:

“This has been introduced in the Pennsylvania State Legislature, I believe, since 1998. It’s received three votes in the House [of Representatives], all being unanimous. It used to be introduced by Republican lawmakers. I have taken over the interest of the taxpayers that want to bring fraud dollars back to our general fund,” Neuman told The Pennsylvania Record.

“From New York, a blue state, to Texas, a red state, they have a false claims piece of legislation, and they have recovered tens of millions, even hundreds of millions of dollars, because they have a False Claims Act.”

Rep. Neuman explained with such legislation in place, Pennsylvania would receive a 10 percent increase in pay from the federal government pertaining to any settlements received from federal False Claims Act cases.

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Curt Schroder, executive director of the Pennsylvania Coalition for Civil Justice Reform (PCCJR) and himself a former lawmaker of 17 years in the Pennsylvania House of Representatives, believes there are several issues with such a law and that it may incentivize qui tam, or whistleblower, litigants to sue companies for financial gain rather than more noble intentions.

“There are numerous problems with a False Claims Act. First of all, the Attorney General has a Medicaid Fraud unit that does this kind of work. If more help is needed, the staff in this unit should be beefed up to handle the problem. Another problem is that the state act must conform to federal law or Pennsylvania does not get an additional 10 percent from federal recoveries,” Schroder said.

Schroder added, in his opinion, individuals advocating for such an act typically reject any attempts to correct what he believes are the many deficiencies of the federal False Claims Act for this reason.

Read the full item at the link:

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