In a significant and unanimous ruling, the Supreme Court held that reimbursement requests submitted to the E-Rate program qualify as “claims” under the False Claims Act (FCA) if any portion of the funds involved originates from the U.S. Treasury. The decision in Wisconsin Bell, Inc. v. United States ex rel. Heath is poised to have far-reaching implications for entities that receive federal funds through intermediaries, heightening litigation and raising the stakes for FCA compliance.Continue Reading Decision Alert: Supreme Court Broadens False Claims Act Reach To E-Rate Reimbursement Requests
Figuring Out the FCA: Supreme Court Issues Two Decisions
In June 2023, the Supreme Court issued two opinions interpreting the False Claims Act (FCA)—U.S. ex rel. Schutte v. SuperValu, Inc., (June 1, 2023), U.S. ex rel. Proctor v. Safeway, Inc. (June 1, 2023), and U.S. ex rel. Polansky v. Executive Health Resources, Inc. (June 16, 2023).In the Supervalu/Safeway decision, which was an important victory for relators, the Court reinforced that the focus is on the subjective knowledge of a defendant for the scienter component of the FCA. In Polansky, the Court, in a ruling beneficial to defendants, held that the Government may dismiss an FCA action when it intervenes, even after the unsealing of the FCA complaint. Each decision also contains discussion about the scope of the FCA, and its statutory interpretations, which will surely lead to future challenges.
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Supreme Court Rejects Third Challenge To Affordable Care Act
On June 17, the Supreme Court rejected another court challenge to the Affordable Care Act (“ACA”), holding that the plaintiffs lacked standing to challenge its minimum essential coverage provisions. For the third time, the Supreme Court upheld the ACA. More than a decade after the ACA was enacted, the long and winding road of ACA challenges may be over and healthcare industry participants may finally be able to rely on the ACA as settled law moving forward.
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