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Michigan Medicaid False Claims Act Approved by OIG

The Michigan Medicaid False Claims Act (FCA) has been found by the Department of Health and Human Services (HHS) Office of Inspector General (OIG), which has the authority to make this determination, to meet the requirements of the Deficit Reduction Act (DRA).

Section 6031 of the DRA creates a financial incentive for States to enact laws that establish liability to the State for individuals and entities that submit false or fraudulent claims to the State Medicaid program. This incentive can reach 10% of any moneys recovered by the federal government when a State brings action against a Medicaid provider under its false claims law. To qualify for the incentive, States must create a law that meets the requirements set out in Section 6031(b); the Michigan Medicaid FCA has satisfied those requirements, as reviewed by the OIG and Department of Justice (DOJ).
Michigan’s FCA was initially found insufficient by the OIG in 2007 (with an explanation issued in a supplement on July 24, 2008), and has since been amended.

Implementation of the FCA will likely lead to a rise in fraud enforcement activities in Michigan.

For more information, please call Abby Pendleton, Esq., Robert Iwrey, Esq., Adrienne Dresevic, Esq., Carey F. Kalmowitz, Esq. or Jessica L. Gustafson, Esq. at (248) 996-8510 or visit The HLP website.

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