What does the False Claims Act (FCA) prohibit?

The False Claims Act (FCA) specifically prohibits the submission of false claims for payment to the government, particularly in the context of federally funded programs like Medicare and Medicaid. This law is vital for protecting government funds from fraud and abuse. It allows individuals, often referred to as "whistleblowers," to report instances of fraud, and if these reports lead to successful recovery of government funds, the whistleblower can receive a portion of that recovery.

The essence of the FCA is to maintain integrity in government funding by ensuring that only legitimate claims for payment are processed. Therefore, any attempt to deceive the government with inaccurate claim submissions falls under the FCA's scope and can lead to significant penalties against the offending party. The FCA is a cornerstone of federal fraud enforcement and plays a critical role in maintaining ethical practices in healthcare and other sectors.