In Florida, a US District Court recently ruled that whistleblowers cannot file False Claims Act lawsuits on behalf of the federal government—known as qui tam provisions—because it’s unconstitutional. Current or former employees often file False Claims Act suits when they suspect their employer is committing fraud or filing inaccurate Medicare and Medicaid claims. In 2023, the courts assessed in more than $2.3 billion in lawsuits from private whistleblowers in all industries, according to Reuters. The government collected more than $1.8 billion in False Claims Act settlements last year specifically for healthcare industry fraud—$200.3 million of which was paid to the whistleblowers, according to Modern Healthcare. Even so, without whistleblowers filing suits, the Justice Department and state agencies could still investigate potential fraud on their own.
What next? An appeal is expected on the Florida ruling, possibly leading to a US Supreme Court decision. In the meantime, fresh challenges to qui tam lawsuits will likely crop up in the months ahead.