Maryland False Claims Act Information

Maryland’s whistleblower statutes allow whistleblowers to report fraud against the State and its health programs, and receive 15-25% of the proceeds in a successful qui tam action

Maryland has two whistleblower statutes: 1.) the False Health Claims Act, which focuses on false claims submitted to the State’s Medicaid and other health-related programs; and 2.) the recently enacted False Claims Act, which combats fraud against the State and its counties. Information on each statute is found below.

Maryland False Health Claims Act

A private person can file a civil action on behalf of the State, known as a qui tam action, for violations of the Maryland False Health Claims Act. When the government intervenes in the qui tam action, the whistleblower is entitled to receive 15-25% of the proceeds of the action or settlement of the claim; plus an amount for reasonable case expenses, attorney’s fees and costs.

The statute also protects whistleblowers against retaliation for engaging in protected activity.

The Maryland False Health Claims Act—Maryland Code Ann. Health Gen. Prov. § 2-601 et seq.—imposes liability on persons who:

  • Knowingly present or cause to be presented a false or fraudulent claim for payment or approval;
  • Knowingly make, use, or cause to be made or used a false record or statement material to a false or fraudulent claim;
  • Conspire to commit a violation under this subtitle;
  • Have possession, custody, or control of money or other property used by or on behalf of the State under a State health plan or a State health program and knowingly deliver or cause to be delivered to the State less than all of that money or other property;
    • Be authorized to make or deliver a receipt or other document certifying receipt of money or other property used or to be used by the State under a State health plan or a State health program; and
    • Intending to defraud the State or the Department, make or deliver a receipt or document knowing that the information contained in the receipt or document is not true;
  • Knowingly buy or receive as a pledge of an obligation or debt publicly owned property from an officer, employee, or agent of a State health plan or a State health program who lawfully may not sell or pledge the property;
  • Knowingly make, use, or cause to be made or used, a false record or statement material to an obligation to pay or transmit money or other property to the State;
  • Knowingly conceal, or knowingly and improperly avoid or decrease, an obligation to pay or transmit money or other property to the State; or
  • Knowingly make any other false or fraudulent claim against a State health plan or a State health program.

Violators are liable to the State for a civil penalty of not more than $10,000 for each violation, plus an additional amount of not more than 3 times the amount of damages that the State sustains as a result of the acts of that person.

Maryland False Claims Act

The Maryland False Claims Act is similar to the False Health Claims Act as far as whistleblower rewards and protections, and civil penalties and damages for violators. However, the False Claims Act— Maryland Code Ann. Health Gen. Prov. §8–101 et seq—imposes liability on persons who:

  • knowingly present or cause to be presented a false or fraudulent claim for payment or approval;
  • knowingly make, use, or cause to be made or used a false record or statement material to a false or fraudulent claim;
  • conspire to commit a violation under this title;
  • have possession, custody, or control of money or other property used or to be used by or on behalf of a governmental entity and knowingly deliver or cause to be delivered to the governmental entity less than all of that money or other property;
    • – be authorized to make or deliver a receipt or other document certifying receipt of money or other property used or to be used by a governmental entity; and
    • – make or deliver a receipt or document intending to defraud the governmental entity, knowing that the information contained in the receipt or document is not true;
  • knowingly buy or receive as a pledge of an obligation or a debt publicly owned property from an officer, employee, or agent of a governmental entity who lawfully may not sell or pledge the property;
  • knowingly make, use, or cause to be made or used a false record or statement material to an obligation to pay or transmit money or other property to a governmental entity;
  • knowingly conceal, or knowingly and improperly avoid or decrease, an obligation to pay or transmit money or other property to a governmental entity, including misrepresenting the time at which a trade was made to make the transaction appear less favorable; or
  • knowingly make any other false or fraudulent claim against a governmental entity.

Click here for more state whistleblower laws.

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