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State Representative Ryan Winkler
100 Rev. Dr. Martin Luther King Jr. Blvd.
651-296-7026
For more information contact: Matt Swenson 651-297-8406
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FALSE CLAIMS ACT NOW LAW IN MINNESOTA
ST. PAUL, MN - Minnesota has become the 23rd state to enact a False Claims Act. The reform legislation authored by Rep. Steve Simon (DFL - Saint Louis Park), which could save state government millions of dollars every year, was signed into law by Governor Tim Pawlenty. Supported by Democrats and Republicans, the Minnesota False Claims Act will provide financial incentives to employees who blow the whistle on their employers for knowingly defrauding state government. Facing a $6.4 billion budget shortfall, the sponsors of the False Claims Act say that the initiative couldn’t come at a more important time.
“Minnesota is looking at the biggest budget crisis in our state’s history," said Rep. Steve Simon (DFL - St. Louis Park). “Lawmakers have a responsibility to ensure every penny of state revenue is protected from fraud by the full measure of the law. We can’t afford to say no to an opportunity like the False Claims Act.”
Under the False Claims Act, employees can bring claims on behalf of the state government. Law enforcement authorities will then have the opportunity to intervene. Those who knowingly defraud the taxpayers will be liable for up to three time the state’s damages. Since 1986, these laws have saved taxpayers $25 billion from fraudulent contractors attempting to bilk taxpayers nationwide.
“The False Claims Act works; it may save Minnesota taxpayers millions of dollars - and will protect the state from fraud that could otherwise go completely unnoticed,” said Rep. Simon.
Minnesota has been more susceptible to contractor fraud than other states that do have False Claims Acts in place. In those other states, whistleblowers have exposed contractors who intentionally over-bill or under-pay taxpayers. In just one settlement last year, Illinois recovered over $40 million from a health care plan that cheated the state by accepting government payments for Medicaid patients it had not enrolled. The State of Texas recovered more than $64 million from just four drug companies over the last six years.
“These settlements were made possible because state law provided the incentive for employees to come forward with strong evidence of fraud,” said Rep. Ryan Winkler (DFL - Golden Valley) who co-authored the House provision and serves on the State Government Finance Committee. “Without this law in place employees have no reason to risk their jobs and their livelihoods to shine a light on fraudulent acts against state government. The Minnesota False Claims Act will provide that incentive, and give our state the tools to save taxpayers millions.”
The Minnesota False Claims Act will provide another added bonus for the state. Because of the successes of these laws at the state level, Congress in 2006 provided big financial rewards for states that adopt False Claims Acts. As long as the state law conforms to certain federal standards of effectiveness, the state would get a twenty percent increase in its share of the recovery from Medicaid fraud cases.
“This is a win-win policy for Minnesota,” Rep. Simon said. “It helps protect the state from fraud on the one hand and gives Minnesota an added financial bonus on the other. Passing a state False Claims Act in Minnesota was not only the right thing to do, it is smart, strategic policy that strikes at the heart of the reform and accountability needed in state government now.”
News Items
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- Rep. Winkler: Tea Party Activists Can’t Be Trusted to Reform Our Elections - (Posted: 2012-11-01 00:00:00)
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