Health care entities that receive $5 million or more in annual Medicaid reimbursement are required to update their employee handbooks, compliance policies, and compliance education materials.  These updates, in accordance with the Deficit Reduction Act of 2005 (DRA), were to be made no later than January 1, 2007, and are an ongoing obligation.   

Specifically, the DRA established incentives for states to enact state level False Claims Act Statutes by amending the Social Security Act.  The DRA also added certain requirements for health care entities to remain eligible for Medicaid participation.  These requirements include educating employees about Federal and State False Claims Act Statutes and the entity's policies for detecting and preventing fraud, waste, and abuse, relevant whistleblower protections.  Related provisions must be included in the entity's employee handbook or other written employee policies.  If an entity does not comply with the employee education requirements, the state may withhold payments until a satisfactory corrective action plan is received.

For more information on this topic, please refer to our December 15, 2006, Health Law Alert titled "CMS Issues Guidance on Implementing the Employee Education Requirements of the Deficit Reduction Act of 2005:  Deadline January 1, 2007."