Qui Tam Action for MSP Results in Costs to Plaintiff

A Federal court ruled that a plaintiff acted with an improper purpose and in bad faith by filing seven different putative qui tam actions against various health care providers under the Medicare Secondary payer Act (MSP). The Federal Court imposed sanctions against plaintiff pursuant to court's inherent power.

The Court reasoned that there was no legal support for plaintiff's claim that MSP was a qui tam statute, Court of Appeals had previously determined that plaintiff's claims were “utterly frivolous” and “unreasonable and vexatious,” and plaintiff had already filed dozens of almost identical cases across the country with similar results.

Stalley ex rel. U.S. v. Mountain States Health Alliance, 644 F.3d 349, C.A.6 (Tenn.), 2011, decided July 08, 2011

Related articles

• Federal Court Enjoins CMS From MSP Recovery Procedures (workers-compensation.blogspot.com)
• Court Permits Deduction of Procurement Costs From Medicare Set-Aside in Liability Claim (workers-compensation.blogspot.com)
• US Supreme Court Advances the Rights of Injured (workers-compensation.blogspot.com)
• Congress Told CMS Must Continue to Stop Work Comp Cost Shifting (workers-compensation.blogspot.com)
• CMS Recovery Contractor Publishes New Rights and Responsibilities Letter (workers-compensation.blogspot.com)
• Halted: Medicare Secondary Payer Recovery Contractor Demand Letters (workers-compensation.blogspot.com)