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Participating in the signing ceremony with Georgia Governor Sonny Perdue were (shown above from left to right) Carrie Downing, Director of Legislative and External Affairs of the Georgia Department of Community Health; Dr. Rhonda Medows, Commissioner of the Georgia Department of Community Health; Inspector General Doug Colburn; Governor Perdue; Rep. Edward Lindsey, sponsor of the State False Medicaid Claims Act; whistleblower lawyer blog author Michael A. Sullivan of Finch McCranie, LLP; and Philip Consuegra, Legislative Assistant to Rep. Lindsey.

Our firm was asked by legislators to help write the nation’s newest whistleblower law, the State False Medicaid Claims Act in Georgia.  After recommending changes to the law, one of our partners Michael A. Sullivan was the only private attorney asked by legislators to testify to explain how the False Claims Act works, and how this new law would operate.

The new whistleblower law protects the State's Medicaid funds by creating liability for "treble damages" (actual losses multiplied by three), and penalties of $5,500 to $11,000 for each false claim submitted to obtain payment by the State Medicaid Program. It also encourages private citizens who know of fraud in health care to file qui tam whistleblower cases, by permitting the whistleblower to share in up to 30% of the State's recovery of money.

Georgia has joined more than 15 other states that have enacted laws to protect tax dollars used in state programs. New York and Oklahoma likewise enacted their own False Claims Act this year. Congress has encouraged states to pass similar whistleblower laws with provisions that are at least as effective as the federal False Claims Act--the states that do so will receive an extra 10% of Medicaid fraud recoveries (which works out to more than 10% when you do the math, which I will not do here, but can explain if you email me).

To explain the new law to Georgia attorneys, our firm has already scheduled what will be a great seminar at the State Bar of Georgia Headquarters in Atlanta on September 20, 2007. We are excited that joining us is the leader of Texas' already hugely successful effort to recover damages for Medicaid fraud, Pat O'Connell, the Chief of the Civil Medicaid Fraud Section of the Texas Office of Attorney General. We also have some other excellent speakers.

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