Signed by Governor Martin O'Malley

Vote Smart's Synopsis:

Vote to pass a bill that prohibits false or fraudulent claims against State health plans and programs.

Highlights:

-Prohibits an individual from knowingly making false or fraudulent claims against State health plans and programs (Sec. 1). -Establishes the following penalties for knowingly making false or fraudulent claims against State health plans and programs (Sec. 1):

-A fine of up to $10,000 per violation; and -A fine of up to 3 times the amount of damages incurred by the State.

-Authorizes the State to sue individuals it believes have made false or fraudulent claims (Sec. 1). -Authorizes an individual to sue, on behalf of the State, those people he or she believes have made false or fraudulent claims, subject to the following conditions (Sec. 1):

-The State may choose to intervene and proceed with the lawsuit on its own behalf; and -If the State chooses to not intervene, or withdraws its intervention at a later point, the court hearing the lawsuit is required to dismiss the case.

-Requires courts to award between 15 percent and 25 percent of a successful lawsuit's settlement to the individual that initiated the case on behalf of the State, with the following exceptions (Sec. 1):

-The amount awarded can be no more than 10 percent of the settlement if the court determines that the lawsuit is based primarily on information disclosed in the media or in public reports and hearings; and -The individual that initiated the case can be awarded no portion of the settlement if he or she participated in the false or fraudulent claim that gave rise to the lawsuit and is convicted of a crime due to that participation.

-Prohibits retaliation by an employer against an employee for his or her actions in reporting a false or fraudulent claim as well as for his or her actions relating to a lawsuit arising from an alleged false or fraudulent claim (Sec. 1). -Specifies that the bill will take effect October 1, 2010 (Sec. 2).

Full Bill Text

Vote Smart's Synopsis:

Vote to pass a bill that prohibits false or fraudulent claims against State health plans and programs.

Highlights:

-Prohibits an individual from knowingly making false or fraudulent claims against State health plans and programs (Sec. 1). -Establishes the following penalties for knowingly making false or fraudulent claims against State health plans and programs (Sec. 1):

-A fine of up to $10,000 per violation; and -A fine of up to 3 times the amount of damages incurred by the State.

-Authorizes the State to sue individuals it believes have made false or fraudulent claims (Sec. 1). -Authorizes an individual to sue, on behalf of the State, those people he or she believes have made false or fraudulent claims, subject to the following conditions (Sec. 1):

-The State may choose to intervene and proceed with the lawsuit on its own behalf; and -If the State chooses to not intervene, or withdraws its intervention at a later point, the court hearing the lawsuit is required to dismiss the case.

-Requires courts to award between 15 percent and 25 percent of a successful lawsuit's settlement to the individual that initiated the case on behalf of the State, with the following exceptions (Sec. 1):

-The amount awarded can be no more than 10 percent of the settlement if the court determines that the lawsuit is based primarily on information disclosed in the media or in public reports and hearings; and -The individual that initiated the case can be awarded no portion of the settlement if he or she participated in the false or fraudulent claim that gave rise to the lawsuit and is convicted of a crime due to that participation.

-Prohibits retaliation by an employer against an employee for his or her actions in reporting a false or fraudulent claim as well as for his or her actions relating to a lawsuit arising from an alleged false or fraudulent claim (Sec. 1). -Specifies that the bill will take effect October 1, 2010 (Sec. 2).

Full Bill Text