On January 31, 2011, Ohio Medicaid Managed Care provider CareSource agreed to pay the United States and the State of Ohio $26 million to settle claims brought by two CareSource nurses who alleged that they were required by the company to submit bogus data to the State of Ohio regarding children with special health care needs (“CSHCN”).  Our clients are being paid 21% of the federal settlement, which will be paid over three years.

Several years ago, we represented Randy Smith and three colleagues–all executives with the agency which administers Ohio’s Medicaid program–in a qui tam case against a company which was alleged not to have delivered what was promised, while charging the State of Ohio more than $100 million. Because most of the money was through a block grant, it could not be recovered under the Federal False Claims Act. Mr. Smith testified that the outcome might have been very different if Ohio joined the 27 states which have their own False Claims Acts, and urged the Committee to pass Ohio Senate Bill 143. Here is his testimony.