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House approves state false-claims measure aimed at rooting out fraud
Summary
The House passed the Taxpayer Protection Against Fraud Act after extended debate over whistleblower incentives, guardrails for inadvertent billing errors and the law's impact on providers. The final vote was 136-67.
The Pennsylvania House passed the Taxpayer Protection Against Fraud Act on a 136-67 vote after hours of debate over how the law would treat inadvertent billing mistakes and protect whistleblowers.
Supporters said the bill creates a state-level mechanism mirroring the federal False Claims Act that will let the commonwealth recover funds lost to fraud and provide incentives for insiders to report wrongdoing. Representative Burns, majority chair of professional licensure, said the measure —deters fraud without burdening honest businesses— and —protects whistleblowers who are exposing fraud, waste and abuse.—
Opponents and several speakers urged refinements to guard against cases where clerical errors or innocent coding mistakes could be treated as fraudulent. Representative Topper said the language matters and signaled a willingness to continue working on definitions of —knowing— conduct. Representative Cutler also raised concerns about proving intent in marginal cases and the potential for settlements by providers who assert harmless mistakes.
Proponents pointed to federal precedent, including the national False Claims Act and high-profile federal recoveries, to argue the state law is a necessary tool for returning taxpayer dollars to state programs. Representative Grove, the minority chair, noted that federal qui tam recoveries have returned billions and said a state law helps capture cases the federal government will not pursue.
The bill creates a private right for whistleblowers to sue on behalf of the commonwealth, sets procedures for courts to deter frivolous suits, and allocates recovered funds to the programs that suffered the loss. Supporters said the bill includes protections against frivolous suits and allows courts to award attorney fees to prevailing defendants in clearly harassing cases.
The House agreed to final passage after debate and roll-call voting. The clerk recorded 136 yeas and 67 nays. The bill will be returned to the Senate for concurrence.
