Healthcare providers should be aware that the Bipartisan Budget Act of 2018 (the "Budget Act"), which President Trump signed into law on February 9, 2018, drastically increases the civil and criminal penalties for violations of federal healthcare fraud and abuse laws, including the Civil Monetary Penalties Law (CMPL) and the Anti-Kickback Statute (AKS). The higher penalties under the Budget Act apply only to violations committed after February 9, 2018.
The CMPL, codified at 42 U.S.C. § 1320a-7a, imposes civil monetary penalties and assessments for various types of conduct, including, among other things, filing certain improper claims, accepting or paying kickbacks, offering beneficiary inducements, and arranging or contracting with excluded persons. Under the Budget Act, the penalties available to the government under the CMPL have more than doubled in some instances. For example, the maximum penalties under the CMPL for various improperly filed claims have increased to $20,000 (from $10,000), $30,000 (from $15,000), and $100,000 (from $50,000). Maximum penalties under the CMPL for various payments to induce reduction or limitation of services have increased to $5,000 (from $2,000) and $10,000 (from $5,000).
The AKS, codified at 42 U.S.C. § 1320a-7b(b), makes it a felony to knowingly and willfully solicit, receive, offer, or pay remuneration in exchange for federal health care program referrals. The Budget Act has quadrupled the maximum criminal fine under the AKS from $25,000 to $100,000 per violation and doubled the maximum term of imprisonment from five (5) to ten (10) years.
To learn more about how the Budget Act may affect your business operations, please contact our healthcare attorneys at CCBLaw.