Texas and Oher States Include Whistleblower Protections in Medicaid Fraud Statutes

Whistleblowers who identify healthcare fraud usually presume that they can only take action pursuant to the federal False Claims Act (FCA). In many states, this is true, but Texas and a few other states have their own laws that address the reporting of Medicaid‐specific misconduct. As with the federal law, conscientious individuals who point out fraudulent activity can recover a share of funds collected by the government. 

Under the Texas Medicaid Fraud Prevention Act (TMFPA), private persons, known as “relators,” may initiate qui tam civil suits against individuals or entities that violate Medicaid fraud provisions. Successful relators can receive between 15 percent and 25 percent of the state’s recovered damages. Should the state choose not to intervene, the relator’s share ranges between 25 and 30 percent. The statute also includes strong employment retaliation protections, prohibiting discharge or demotion of an employee who reports suspected fraud. Frequently, state authorities collaborate with their federal counterparts to root out fraud and hold wrongdoers accountable. 

One potential justification for reporting Medicaid fraud to the state is that the federal False Claims Act is limited to situations where claims were actually filed. Meanwhile, the TMPFA covers various types of misconduct, including misrepresentations regarding the certification of a medical facility and obstruction of investigations into Medicaid-related misconduct. While FCA qui tam cases are sealed for 60 days to give the government time to conduct an investigation, Texas extends this sealing period to 180 days. 

The provisions of the TMPFA confer explicit job-protection rights on whistleblowers, so you should not hesitate to contact an experienced healthcare whistleblower attorney if you suspect that something wrong is going on. At Kardell Law Group, we have a long track record of successfully representing clients in qui tam cases under both the FCA and TMFPA.  

When you reach out to us, we’ll listen and give you an informed assessment on the best way to proceed. Should the facts in your case support a Medicaid Fraud case under the FCA and TMFPA, you can rely on us for sound counsel regarding the potential advantages and disadvantages of each option. Our attorneys can also advise on the type of financial recovery you might be entitled to. From there, we’ll battle to obtain maximum payment in your whistleblower action.