New Jersey has amended its False Claims Act to bring it into compliance with the federal Deficit Reduction Act. If the Inspector General of the Dept. of Health and Human services finds that the state law is in compliance, the state is entitled to enhanced recovery in Medicaid fraud cases.

To be compliant the state law must be at least as effective in rewarding and facilitating qui tam actions as the federal False Claims Act.

The prior version of the New Jersey False Claims Act was found to be deficient. The amendments:

1) Delete language in section 1 enabling the Attorney General to take over a qui tam action that is based upon facts underlying a pending Attorney General investigation;
2) Amend language in section 2 related to the award of attorney’s fees and other costs so that a person bringing a qui tam action may collect such expenses as an award against the defendant; and
3) Preclude in section 3 the initiation of qui tam actions based upon allegations or transactions that are the subject of a pending action or administrative proceeding to which the State is already a party.

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