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False Claims Act

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False Claims Act

Wrongful Termination For Whistleblowing On Medicare Fraud

whistleblower and employment law

A reader who wishes to remain anonymous writes, “Chris, I worked in the accounting department of a health care provider.  Last year, my company discovered it had been using the wrong billing code for a key service when submitting Medicare reimbursement requests.  This resulted in the government paying substantially more for the service than it should have.  My supervisor directed me to compile a list of the overcharges for senior management.  The company remedied the error for new reimbursement requests but never informed the government of the overpayments.

Two weeks ago, I sent an email to my supervisor asking why the company had not reported the billing error.  I was told the matter had been resolved and not to raise the issue again.  I would know if the company reimbursed Medicare for the overcharges.  No payment was made.  Last week, I was laid off without notice.  I believe it was because I complained about the Medicare overcharges.  I did not have a contract and they refused to give me any severance pay.  What can I do?”

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Tech Employees as Whistleblowers: False Claims Act Summary

iStock_19241308_MEDIUM.jpg

Amit writes:  “Chris, I work for a tech firm that sells products to a federal agency under a contract requiring a 5 to 20% discount, depending on the product sold, off of the price the company charges private businesses for the same products. My company discounts its list prices if that is what it takes to make the sale to other businesses.  This happens all the time. But the discount we give the government is based on solely on our list prices.  This bothers me.  What can I do about this?”

Amit, you are not alone.  Over the past few years, many employees in the tech industry nationwide have stepped forward as whistleblowers because their companies defrauded federal agencies.  Promising a federal agency a price discount compared to what private businesses are charged and then not providing the discount when charging for the item violates the False Claims Act.

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