Qui Tam-The Next Litigation Phase

Implications: >A vehicle to recover millions in fraudulent claims.
>Individuals suing on behalf of the Federal Government.
>Insiders protected from exposing fraud.
>Insiders may receive a % as compensation.

Analysis: The False Claims Act was designed to encourage citizens with knowledge of fraud against the government to come forward by authorizing them to file a civil suit in the name of the government, and by rewarding them with a possible percentage of the recovery. The Act provides for treble damages and penalties of $11,000 per violation for virtually any kind of fraud on federally funded programs. The qui tam provisions of the statute permit a private citizen (individual or corporation) who brings suit under the False Claims Act  to receive up to 30% of the recovery, with the average share around 17%.  In trying to fully understand how the statute works see these sites for some guidance http://www.expertlaw.com/library/employment/qui-tam.html or http://www.quitaminfocenter.com/

A federal jury in Chicago recently ordered Virginia-based health insurer Amerigroup, which had operated Medicaid managed care plans in Illinois, to pay $48 million in damages—an amount that will triple to $144 million under the federal False Claims Act—for discrimination against pregnant women and other beneficiaries with health issues. Will Jeff McWalters bail?  Will the federal government make it tougher for Amerigroup to do business in certain states?  Will this verdict stand up on appeal?  What about Amerigroup's involvement in the other 12 or so states it does business?