- Diego Loinaz-Martin
New Law 154 for Fraudulent Claims
The Legislature of Puerto Rico has enacted Law 154 on July 23, 2018, that establishes the “Fraudulent Claims to Programs, Contracts and Services of the Government of Puerto Rico Act”. This law derives from the “Federal False Claims Act”, and institutes the Medicaid Fraud Control Unit at the Puerto Rico Department of Justice. This unit will be dedicated to address fraud in the Medicaid health program and will supervise and prosecute those individuals or corporations that misuse Medicaid. Also, the unit will review complaints about allegations of mistreatment and/or neglect of patients at facilities receiving funds under the Medicaid Program.
This law provides penalties of up to $ 250,000 in fines for each felony, and up to 10 years in jail. It also exposes the withdrawal of the insurance license from the Office of the Commissioner of Insurance, disciplinary procedures by the Licensing Board and the cancellation of the certificate of incorporation, or stoppage of operations.
At Loinaz Martin PSC, we understand that our clients must be aware of this new law and its provisions. If you have any questions about this or other legal matter, please contact us at Loinaz Martin PSC, at (787) 294- 5551. It will be a pleasure to assist you.