Connecticut False Claims Act: A New Arrow in the Quiver of State Regulators

October 6, 2009 Advisory

On October 5, 2009, Governor Rell signed a civil False Claims Act into law. Connecticut's False Claims Act ("CFCA") is modeled after the federal False Claims Act, a Civil War era statute originally enacted to prosecute profiteers engaged in fraud against the Union Army. The False Claims Act is now the federal government's primary and powerful statutory tool to combat fraud, waste and abuse, particularly in the Medicare and Medicaid programs.
The new Connecticut statute has the potential to become an equally potent tool for state authorities to combat fraud and abuse. The law was enacted through the Department of Social Services ("DSS") biennial budget implementation legislation, Public Act 09-5 September Special Session, and became effective when it was signed by the Governor. Unlike the federal False Claims Act, which applies broadly to any false claims submitted to the federal government, the Connecticut law applies more narrowly and only to the medical assistance programs administered by DSS, including Medicaid; State-Administered General Assistance (SAGA); HUSKY B; and Charter Oak.