Kraus said the U.S. Supreme Court’s decision in the case was expected to shake up False Claims Act cases, and that is exactly what is happening.
“Providers have to recognize that there are new defenses that could be asserted in False Claims Act cases. But I think that, more broadly, when new regulations are being promulgated, especially in the health care area, providers are going to want to look at those regulations and determine whether they’re permissible exercises of regulation of agency power or whether, in fact, the agencies are arguably interpreting the statue,” Kraus explained. “Interpreting is what Loper Bright says can’t happen. So there needs to be assessment as new regulations come out to see whether there’s an additional area of disagreement, litigation, attack on the regulations.”
