42 U.S.C. § 1396h — State false claims act requirements for increased State share of recoveries

(a) In general. Despite section 1396d(b) of this title, if a State has a law against false or fraudulent claims that meets subsection (b), the Federal medical assistance percentage for amounts recovered in a State action under that law is reduced by 10 percentage points. (b) Requirements. The Inspector General of the Department of Health and Human Services, consulting with the Attorney General, must determine that the State law has all of these features: (1) It makes a person liable to the State for false or fraudulent claims described in section 3729 of title 31 involving an expenditure described in section 1396b(a) of this title. (2) It has provisions at least as effective as the provisions in sections 3730 through 3732 of title 31 for rewarding and helping qui tam actions involving false or fraudulent claims. This section does not define “qui tam action.” (3) It requires an action to be filed under seal for 60 days while the State Attorney General reviews it. (4) It has a civil penalty at least as large as the civil penalty authorized by section 3729 of title 31. (c) Deemed compliance. A State whose law met subsection (b) on January 1, 2007, is treated as meeting those requirements for as long as its law continues to meet them. (d) Broader laws allowed. This section does not prohibit a State from being treated as meeting subsection (a)’s requirements when its law imposes liability for the claims described in section 3729 of title 31 involving programs beyond the State program under this subchapter or expenditures beyond those described in section 1396b(a) of this title, as long as the law meets the requirements in this section.