Supreme Court Prepares to Hear Case With Major Fraud Liability Implications for Insurers
On April 18, the U.S. Supreme Court will hear oral arguments in a case that has major implications for government contractors, including health insurers, which are generally subject to a host of complicated regulations and can face federal fraud allegations for knowingly violating those rules.
Major insurer trade group AHIP recently teamed up with the American Hospital Association (AHA) to file an amicus brief arguing that a ruling in favor of the government’s position in two consolidated cases — U.S. ex rel. Schutte v. SuperValu Inc. and U.S. ex rel. Proctor v. Safeway, Inc. — “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.”