What are the potential damages and penalties for which a defendant can be liable?
Section 3729(a) contains the awesome penalty provisions of the FCA. As a starter, the government is entitled to three times the amount of its loss (also known as “single damages”). However, the more severe penalty provision is that addressing penalties: between $5,000 and $10,000 for each false claim submitted and/ or false document used to get a false claim approved for payment. In the health care fraud area, it should be noted that the civil penalties apply to each request to the Department of Health and Human Services for reimbursement, causing a defendant’s potential exposure to mount very quickly. As a result, for every 100 false claims a government contractor or health care provider submits, it can face liability of one million dollars or more in penalties alone. Because of the large number of claims generated by health care providers, the penalty provisions of the Act play a more important role in defining total provider liability than does the treble damages provision. Generall