ALERT: INCREASED CIVIL AND CRIMINAL PENALTIES UNDER THE CIVIL MONETARY PENALTIES LAW AND THE ANTI-KICKBACK STATUTE

Civil and criminal penalties for violations of healthcare fraud and abuse laws have been substantially increased. For example, the maximum penalties under the Civil Monetary Penalties Law, which generally prohibits submitting false claims, have increased as follows: previous penalties of up to $10,000 have been increased to $20,000; previous penalties of up to $15,000 have been increased to $30,000; and previous penalties of up to $50,000 have been increased to $100,000. In addition, penalties for beneficiary inducements have been increased from up to $2,000 to $5,000. Similarly, criminal fines for violations of the Anti-Kickback Statute and other prohibitions in 42 U.S.C. 1320a-7b have increased from $25,000 to $100,000 and corresponding prison sentences have increased from not more than five years to not more than ten years.