Insurance Coverage for Healthcare False Claims Act, Stark, and HIPAA/HITECH Government Investigations


Federal enforcement of False Claims Act (FCA), Stark anti-kickback, and HIPAA/HITECH claims against healthcare companies continues to rise rapidly. FCA recoveries by the U.S. Department of Justice (DOJ) exceeded $9.5 billion from January 2009 through the end of 2012—a record for any four-year period. Insurance can be a valuable asset to defray the costs to defend individual directors and officers and the company from a government investigation and pay any ultimate settlements and judgments.

This alert provides tips for getting the most out of your company’s traditional Directors & Officers (D&O) and Errors & Omissions (E&O) policies for FCA and similar healthcare government investigations, and highlights key features of recently-developed specialty healthcare E&O policies that target coverage specifically for FCA, Stark, and HIPAA/HITECH related claims and investigations.

Please see full alert below for more information.

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DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

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