Federal government’s interpretation of the False Claims Act would have real consequences for health care affordability and access
Washington, D.C. – (March 28, 2023) – Today, the American Hospital Association (AHA) and AHIP filed a joint amicus brief in United States v. Supervalu Inc. v. Safeway Inc. In the brief, the organizations argue that the federal government’s “erroneous construction and expansion of the FCA [False Claims Act] threatens the legitimate business activities of every government contractor, hospital, healthcare provider, health insurance provider, and grant recipient in the nation,” and would “ultimately divert resources away from the primary missions of AHA’s and AHIP’s members: caring for patients, reducing the cost of care, and ensuring a healthy citizenry.”
Together, the organizations issued this statement:
“While AHA and AHIP may not always share the same opinion on matters of litigation and policy, we agree that the current regulatory landscape and construction of the False Claims Act (FCA) creates an untenable situation for health care providers and health insurance providers. If the government’s argument is accepted, our members will be forced to spend more on litigation and less on patient care.
“As we explain in our brief: ‘Medicare and Medicaid are vital public health programs that can operate only with the participation of private parties like our members, but participation in these programs also entails navigating some of the most complex statutory, regulatory, and sub-regulatory requirements in existence.’
“For that reason, the United States’ argument in this case causes us great concern. The government would impose criminal or civil FCA liability even though it admits that it cannot ‘feasibly address in advance every potential ambiguity’ in its thousands of statutes of regulations. The rule it proposes would create a Wild West of ramifications for any well-intentioned and legitimate hospital or insurance provider that seeks to serve Americans in partnership with the government.
“We urge the Supreme Court to adopt an interpretation of the FCA that does not undermine the ability of our members to ensure that Americans have access to high-quality, affordable health care.”
About the American Hospital Association (AHA)
The AHA is a not-for-profit association of health care provider organizations and individuals that are committed to the health improvement of their communities. The AHA advocates on behalf of our nearly 5,000 member hospitals, health systems and other health care organizations, our clinician partners – including more than 270,000 affiliated physicians, 2 million nurses and other caregivers – and the 43,000 health care leaders who belong to our professional membership groups. Founded in 1898, the AHA provides insight and education for health care leaders and is a source of information on health care issues and trends. For more information, visit the AHA website at www.aha.org.
About AHIP
AHIP is the national association whose members provide health care coverage, services, and solutions to hundreds of millions of Americans every day. We are committed to market-based solutions and public-private partnerships that make health care better and coverage more affordable and accessible for everyone. Visit www.ahip.org to learn how working together, we are Guiding Greater Health.