Bill Positions

Bill Number: HB 525

Bill Title: Maryland False Health Claims Act of 2010

Bill Sponsor(s): The Speaker (Administration)

Subject: Civil Liability

Committee: JUD

Bill Summary: This bill would have: (1) Established penalties and damages for any person submitting a false claim for a state-funded health benefit or contract; (2) Authorized a person to file suit on behalf of the state for such false claims, and received up to 30% of the proceeds of the suit, plus attorney's fees and costs; and (3) Provided penalties and damages against an employer that retaliated against a whistleblower.

History: In 2008 the Chamber opposed SB 215, which failed in the Senate on 3rd reading 21 - 25. In 2009 SB 272 again failed in the Senate on 3rd reading 23-24. In 2010, HB 525 died in the Judiciary Committee without a vote. A companion Senate bill, SB 279, was enacted as Chapter 4.

Chamber Position: Oppose

Position Summary: The state should directly prosecute any person who defrauds the state under a benefit program or contract. It is inappropriate for the state to authorize a bounty hunter system for the enforcement of state fraud statutes. Such a system will lead to needless litigation and harassment of government contractors by the trial bar. State law could be enhanced to address false claims without subjecting health care providers to private lawsuits.

Position Statement: To view the Chamber's complete position statement, click here (pdf).

Chamber Staff: Ronald Wineholt

General Assembly: Click here to view the bill on the Maryland General Assembly's website.