In a recent article published by Health Payer Specialist, a Financial Times publication, Birmingham Partner Angie Smith shared insights into the Trump administration’s support for upholding the False Claims Act (FCA), particularly its qui tam provisions.

A recent Indiana Medicaid fraud case illustrates where the administration stands, with the Department of Justice (DOJ) taking the unusual step of intervening in the state case. The DOJ intervened to defend the constitutionality of the FCA after the defendants challenged it, signaling the administration’s commitment to upholding the law.

The DOJ's intervention has raised interest, particularly because it aligns with statements made by Trump’s Attorney General Pam Bondi, who emphasized her support for the FCA during her confirmation. The FCA has been instrumental in recovering billions of dollars, especially in health care fraud cases, and some believe that business interests may influence the administration’s stance on the matter. However, many experts argue that the administration is likely to prioritize the financial benefits of the law over any legal challenges posed by industry groups.

Angie Smith agrees, suggesting that the Trump administration is more likely to value the financial impact of the FCA over conservative legal sentiment. "I don't foresee the Trump administration taking steps to weaken the FCA, but rather ensuring the courts are evaluating the facts and properly applying the FCA standard," Smith said. "It's no secret that the government has collected millions of dollars in settlements from FCA cases." She also noted that while FCA settlements can be costly, "Many defendants pay to settle even if there are strong defenses because of the extremely high cost to take the case to trial."

In conclusion, despite legal challenges and industry pushback, it appears the Trump administration remains committed to supporting the FCA and its significant financial benefits, particularly in the context of health care fraud and other large-scale fraud cases.