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Fraud and Abuse Update: Inflation Adjusted Rate Hikes Coming Aug. 1 for False Claim Act and Anti-Kickback Civil Money Penalties

PROVIDERS TAKE NOTE: CIVIL MONEY PENALTIES FOR FALSE CLAIM ACT AND ANTI-KICKBACK STATUTE VIOLATIONS WILL NEARLY DOUBLE AUGUST 1ST

The Department of Justice (DOJ) released an interim final rule recently to update the minimum and maximum civil money penalties (CMP) for violation of the False Claim Act (FCA). Providers should be aware that the increases are very significant, with the minimum penalty per claim increasing from $5,500 to $10,781, and the maximum penalty for each violation of the False Claim Act or a violation of the federal anti-kickback statute increasing from $11,000 to $21,563. Although the penalties take effect August 1st, they apply to violations occurring after November 2, 2015. These adjustments were authorized by Congress in 2015 to allow for inflation. For those providers wanting to voice their concerns about these significant increases, the comment period for this interim rule ends on Monday, August 29, 2016.

By Denise Bloch

Denise Bloch

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