5 Reasons the False Claims Act Is Essential for Fighting Fraud

The False Claims Act is an integral piece of legislation designed to incentivize integrity and honesty. It is a multi-faceted approach to exposing, eliminating, and deterring fraud – with many important benefits for plaintiffs. The following explores some of the reasons why the False Claims Act is one of the most important statutes on the books today, particularly in light of the rampant fraud within the healthcare and banking industries.

#5 – The deterrent effect: While the crux of the False Claims Act’s purpose is to expose and punish fraud, it also acts as a deterrent against other companies or individuals thinking of engaging in similar conduct. Oftentimes, a whistleblower plaintiff may be prompted by a similar settlement in another case that seems too familiar, resulting in a subsequent False Claims Act lawsuit against that plaintiff’s employer.

#4 – Protecting taxpayer resources: It goes without saying that the False Claims Act helps to protect taxpayer dollars. To date, this statute has allowed the federal government to recover tens of billions of dollars on behalf of taxpayers, all from wasteful and deceitful contractors caught siphoning public funds from government agencies.

#3 – Preventing waste in defense spending: The False Claims Act has been essential in combating costly defense fraud since its inception in the Civil War era. Prompted by President Lincoln, the Congress created the False Claims Act in response to widespread fraud by government contractors under lucrative contracts with the government who were delivering less-than-conforming goods. Today, not much has changed in the way of defense fraud, and the False Claims Act has exposed dozens of military contractor scams in recent years – some of which could have placed servicemen and women in danger.

#2 – Keeping costs low: When health insurance providers are defrauded, this could essentially result in a rise in premium costs for all enrollees. When it comes to public healthcare providers like Medicare, Medicaid, and TRICARE, costly and wasteful fraud places a strain on these programs, making it more difficult to provide resources to those who actually need coverage. Thanks to the False Claims Act, fraud is being consistently exposed and eliminated, thereby reserving public health insurance funds for those who are truly eligible and in need.

#1 – Protecting patient health and well-being: It may seem unbelievable, but the False Claims Act has actually put a stop to scams that were resulting in the physical harm or neglect of patients. In several recent cases, long-term care facilities have faced significant liability under the False Claims Act for providing sub-standard, low-quality care to patients while collecting thousands of dollars per day from Medicaid and Medicare. By exposing the scam, whistleblowers actually helped protect vulnerable patients from further mistreatment and abuse.

Contact Berger Montague Today

If you are aware of costly healthcare fraud or contract fraud and would like to discuss your information with a reputable whistleblower attorney, please contact Berger Montague today. Successful whistleblower plaintiffs may be able to recover up to 30 percent of the ultimate settlement or verdict as a reward for coming forward.