False Claims Act Update & Alert
Taxpayers Against Fraud Education Fund | Washington, D.C. | WWW.TAF.ORG May 3, 2005
		Sign Up for this FREE Newsletter n TAF Home Page n About TAF-EF n The False Claims Act n Previous Newsletters n Email editor Please take a moment to forward this FREE electronic newsletter to others that might be interested!        "Fraud and falsehood only dread examination. Truth invites it." - Samuel Johnson
			Drug Dealer Economics at Merck The Nevada Attorney General's office has joined a False Claims Act lawsuit accusing Merck of overcharging Nevada's Medicaid program for two of its biggest selling drugs while giving sweeping discounts to private hospitals. The suit charges Merck with deliberately concealing discounts of up to 92% in direct violation of Medicaid "best price" regulations.  It is believed other False Claims Act lawsuits raising similar charges may remain under seal in other states.  >> To read press release    >> To read complaint
			The Litigation Line at Caremark Caremark now faces litigation with Tennessee and Texas.  The U.S. Department of Justice appears to be jockeying for position in the litigation line, while court records suggest Arkansas may be waiting in the wings.  Meanwhile CMS and the U.S. Department of Labor have issued advisory opinions that indicate Caremark owes Medicaid money it has systematically refused to pay back to the states.  >> To read more
			SAIC Settles Air Force Case SAIC has agreed to pay $2.5 million to settle charges it padded bills on an Air Force environmental cleanup contract.  During pre-settlement exchanges, SAIC said what it did was common practice -- a signal SAIC may have other contract and accounting problems subject to action under the False Claims Act.  >> To read the DoJ press release
			Physician Whistleblowers Physician whistleblowers have exposed over a billion dollars worth of fraud against the U.S. Government, almost all of it against large health care companies engaged in systematic fraud against Medicare and Medicaid.  Though corporate attorneys like to claim physicians are being singled out for "simple mistakes" in coding, the AMA News reports that in the last 18 months only 7 physicians have settled individual False Claim Act cases, all for sums of less than $300,000, and none for "mistakes.  >> To read more
			NYC False Claims Act Agreement New York City Mayor Michael Bloomberg and City Councilman David Yassky (D-Brooklyn) have come to an agreement on False Claims Act language that would give private citizens the right to sue a contractor on behalf of the city and, if successful, take home a portion of the damages. >> To read more
			Obvious Management Problems The GAO has reviewed recent annual reports of the Health Care Fraud and Abuse Control (HCFAC) program.  GAO notes that neither DoJ nor HHS have adequate accounting oversight of HCFAC money, and while net improper payments of $20 billion continue to roll out of Medicare and Medicaid, the HCFAC report itself is now produced a full year late.  >> To read report