Dive Brief:
- Healthcare providers and companies could see an uptick in fraud lawsuits as a result of a case now before the US Supreme Court, even though the justices did not address that issue during oral arguments Tuesday.
- If the justices reverse a lower court ruling in the case Kellogg, Brown & Root Services v. United States ex. rel. Carter, experts believe that could lead to an extension of the statute of limitations in many fraud cases, and give whistleblowers more time to file cases. The issue is centered on whether Benjamin Carter, a Kellogg, Brown & Root Services employee who worked in Iraq, can sue the company, now known as KBR, under the False Claims Act. Carter alleges the company billed the government for purifying and testing contaminated water when it was not actually purifying or testing the water.
- A reversal of the lower court ruling also may also indicate that whistleblowers would be allowed to file lawsuits alleging fraud even when similar lawsuits had already been filed and dismissed for reasons unrelated to the merits of a case.
Dive Insight:
As reported, neither the justices nor lawyers in the case discussed what the case could mean for the healthcare industry during oral arguments on Tuesday. However, the outcome of this case is expected to have significant implications for the healthcare industry, which is already riddled with fraud regulatory crackdowns. Medicare and Medicaid fraud costs taxpayers billions of dollars each year.
Want to read more? You may enjoy this story on the mansion and the jail cell: A tale of two CEOs.