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FOR IMMEDIATE RELEASE |
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State
Rep. Mike Gerber |
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House committee approves Gerber bill that would protect whistleblowers, save tax dollars
HARRISBURG, June 23 – The House Health and Human Services Committee this week approved legislation authored by state Rep. Mike Gerber, D-Montgomery, that would protect Pennsylvania taxpayers from fraud and save millions in health-care costs.
"In these difficult budget times, we must ensure every cent of taxpayer money is spent wisely and efficiently," Gerber said. "Unfortunately, Pennsylvania is not sufficiently protected from fraud and abuse that drains millions every year from state programs, from Medicaid to infrastructure programs."
House Bill 1679, the proposed Pennsylvania False Claims Act, would allow whistleblowers who discover the theft of state money to come forward to the state attorney general to recover the funds for the Commonwealth.
Gerber said his proposal would also provide Pennsylvania with an additional source of revenue, reward and protect whistleblowers for doing the right thing, and punish wrongdoers with significant damages and civil penalties.
The federal false claims law was strengthened under President Reagan in 1986. Since then, the federal government has recovered more than $12 billion. However, the federal government cannot pursue action against wrongdoers who defraud a state, which is why it established a financial incentive program designed to encourage state-enacted versions of the law.
Under Gerber’s legislation, Pennsylvania would join 28 states that now have a false claims statute and become eligible for the federal financial incentive program.
Since 2000, states that have false claims laws have recovered more than $7 billion, including a $187 million award to California for catching municipal bond fraud, a $27 million award to Texas for catching falsely reported drug prices in the state’s Medicaid program and a $4 million award to Hawaii for catching wrongly recycled and repackaged prescription drugs.
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