Which law creates liabilities for submitting false claims to federal healthcare programs?

Study for the HCCA Certified in Healthcare Compliance (CHC) Exam. Practice with interactive questions and detailed explanations. Get ready to excel in your field!

The False Claims Act (FCA) is the law that establishes liability for submitting false claims to federal healthcare programs. This act specifically targets fraudulent billing activities by allowing individuals, known as whistleblowers, to report fraudulent claims submitted to government healthcare programs like Medicare and Medicaid. Under the FCA, individuals or entities may face severe penalties, including monetary fines and potential imprisonment if found guilty of committing fraud through false claims. The act not only aims to deter fraudulent behavior but also encourages reporting of offenses by providing financial incentives to whistleblowers.

This legislation plays a crucial role in maintaining the integrity of federal healthcare programs by imposing strict accountability for healthcare providers and organizations that attempt to defraud these programs. It serves as a fundamental tool for the government to combat healthcare fraud and protect taxpayer dollars.

The other options pertain to different aspects of law and regulation. The RICO Act, for instance, focuses on combating organized crime and does not specifically address issues related to healthcare fraud. Similarly, the Deficit Reduction Act revolves around budgetary measures and does not create liabilities for false claims. The Medicare Modernization Act pertains to prescription drug coverage under Medicare but does not address the submission of false claims directly.

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