Form 5495 Statutory 2017-2025

My name is Meredith Williams, and I'm an attorney with the Office of Inspector General. Many people ask us what the federal anti-kickback statute is and how it could affect them. Here are the four most important things you need to know about the kickback statute: 1. You should know what the anti-kickback statute prohibits. 2. You should know the penalties under the law. 3. You should know the types of programs the law covers. 4. You should know that the law has numerous safe harbors. Let's start with number one. What does the law prohibit? Under the federal anti-kickback statute, you may not knowingly and willfully offer, pay, solicit, or receive anything of value to induce or reward referrals to a federal healthcare program. In some industries, it's acceptable to reward those who refer business to you. However, in healthcare, it's a crime. The prohibition against kickbacks applies to those who pay for referrals and to those who receive them. Kickbacks can take various forms, such as bribes or rebates. They can be given in cash or in-kind. Here's an example of an arrangement that would be problematic under the federal anti-kickback statute: If a medical device manufacturer gives lavish vacations, gifts, or sham consulting fees to an orthopedic surgeon to reward the physician for using its devices during surgery, that would be suspect under the kickback statute. In schemes like this, the government may prosecute the physician who receives the kickbacks as well as the manufacturer who paid them. Now let's move on to number two: What are the penalties? There are criminal and civil penalties for violating the law. Violating the anti-kickback statute is a felony, which means violators can go to jail. Conviction can result in fines up to $25,000 per violation, up to a five-year prison term, or both. Additionally, kickback...