Florida fund for injured kids agrees to $51M settlement for false Medicaid claims

A Florida fund for injured children has agreed to pay $51 million to settle allegations it violated the False Claims Act by causing participants to submit claims to Medicaid. 

The Justice Department alleged that the Florida Birth-Related Neurological Injury Compensation Plan and its administrator, the Florida Birth-Related Neurological Injury Compensation Association, used Medicaid rather than its fund to cover claims, violating Medicaid's status as a payer of last resort under federal law, according to a Nov. 14 news release. 

The Birth-Related Neurological Injury Compensation Association grew assets of nearly $1.7 billion in part by diverting healthcare and caregiving costs to Medicaid, ProPublica reported Nov. 15. 

Whistleblowers will receive $12.75 million as part of the settlement, the release said. 

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