US Code

Public Law 119-73 (01/23/2026)

42 U.S.C. § 1396h

State false claims act requirements for increased State share of recoveries

(a)

In general

section 1396d(b) of this titleNotwithstanding , if a State has in effect a law relating to false or fraudulent claims that meets the requirements of subsection (b), the Federal medical assistance percentage with respect to any amounts recovered under a State action brought under such law, shall be decreased by 10 percentage points.

(b)

Requirements

For purposes of subsection (a), the requirements of this subsection are that the Inspector General of the Department of Health and Human Services, in consultation with the Attorney General, determines that the State has in effect a law that meets the following requirements:
(1)
section 3729 of title 31section 1396b(a) of this title The law establishes liability to the State for false or fraudulent claims described in with respect to any expenditure described in .
(2)
The law contains provisions that are at least as effective in rewarding and facilitating qui tam actions for false or fraudulent claims as those described in sections 3730 through 3732 of title 31.
(3)
The law contains a requirement for filing an action under seal for 60 days with review by the State Attorney General.
(4)
section 3729 of title 31 The law contains a civil penalty that is not less than the amount of the civil penalty authorized under .
(c)

Deemed compliance

A State that, as of , has a law in effect that meets the requirements of subsection (b) shall be deemed to be in compliance with such requirements for so long as the law continues to meet such requirements.

(d)

No preclusion of broader laws

section 3729 of title 31section 1396b(a) of this titleNothing in this section shall be construed as prohibiting a State that has in effect a law that establishes liability to the State for false or fraudulent claims described in , with respect to programs in addition to the State program under this subchapter, or with respect to expenditures in addition to expenditures described in , from being considered to be in compliance with the requirements of subsection (a) so long as the law meets such requirements.

Aug. 14, 1935, ch. 531Pub. L. 109–171, title VI, § 6031(a)120 Stat. 72(, title XIX, § 1909, as added , , .)

Editorial Notes

Prior Provisions

act Aug. 14, 1935, ch. 531, title XIX, § 1909Pub. L. 92–603, title II86 Stat. 1419Pub. L. 95–142, § 4(b)91 Stat. 1181Pub. L. 96–499, title IX, § 91794 Stat. 2625Pub. L. 100–93, § 4(a)101 Stat. 688section 4(d) of Pub. L. 100–93section 1320a–7b of this titleA prior section 1396h, , as added and amended , , §§ 242(c), 278(b)(9), , 1454; , , ; , , ; , –(c), , 689, related to criminal penalties for acts involving Medicare and State health care programs, prior to being renumbered section 1128B of title XI of act , by and transferred to .

Statutory Notes and Related Subsidiaries

Effective Date

Pub. L. 109–171, title VI, § 6031(b)120 Stat. 73Pub. L. 109–432, div. B, title IV, § 405(c)(2)(A)(iii)120 Stat. 3000

section 1396a of this title“Except as provided in section 6034(e) [set out as an Effective Date of 2006 Amendment note under ], the amendments made by this section [enacting this section] take effect on .”
, , , as amended by , , , provided that: