The Deficit Reduction Act contains specific requirements regarding entities that receive more than $5 million annually from Medicaid. The law requires that entities covered by the law have specific policies dealing with matters of fraud and abuse. In addition, employees and contractors are to be informed about a federal law known as the False Claims Act, a civil anti-fraud statute providing that any person who knowingly submits or causes the submission of false claims for government funds or property is liable for damages and penalties. Entities that knowingly violate this law can be liable for triple damages and a penalty from $5,500 to $11,000 per claim. The False Claims Act contains provisions for individuals who are known as “relators” or whistleblowers. The law provides certain protection for employees who are retaliated against by an employer because the employee filed a whistleblower lawsuit. Many states have enacted False Claims Act statutes that contain provisions that are similar to the Federal statute, including whistleblower provisions. Individuals who have questions regarding the specifics should refer to Capella’s policies for additional information.