Anti-Fraud Coalition Urges Pennsylvania Lawmakers to Pass State False Claims Act

by Matthew P. Suzor and Riya Mittle

On May 22, 2026, Taxpayers Against Fraud (“TAF”) published a letter to the Pennsylvania Senate Health and Human Services Committee supporting Pennsylvania House Bill No. 1697 (“HB 1697”) and Senate Bill No. 38 (“SB 38”).  If passed and signed into law, these bills would create a state-level Pennsylvania False Claims Act that TAF argues would provide a multitude of benefits including, among others, supporting whistleblowers, aligning Pennsylvania law with the federal False Claims Act and many similar laws in other states, and safeguarding public funds.

The Current Status of the Pennsylvania False Claims Act Bills

As of the time of this article’s publication, Pennsylvania does not have its own False Claims Act.  In July 2025, the Pennsylvania House of Representatives passed HB 1697 which, if passed by the Senate Health and Human Services Committee and signed into law, would create a Pennsylvania False Claims Act.  The bill presently remains pending with the Committee.  Legal actions seeking to combat waste, fraud, and abuse in government contracting in Pennsylvania are, therefore, currently pursued under the federal False Claims Act except where there is an applicable local regulation, such as in the City of Philadelphia and Allegheny County.

The lack of a Pennsylvania False Claims Act can, in part, be attributed to the advocacy of business and health care groups against similar bills in the past.  In a letter sent to the Senate, a coalition of hospital associations and legal reform groups noted the increased liability companies may face should these bills become law, as well as the existence of an already effective system in Pennsylvania under the federal False Claims Act.  Further, the coalition argued that a Pennsylvania False Claims Act would disproportionately benefits private parties.  With that said, there are many advantages that may result if these bills become law.

Benefits from a Pennsylvania Specific False Claims Act

Over thirty states have a state-specific False Claims Act.  In fact, while other states have recovered anywhere from tens of millions to billions of dollars, Pennsylvania currently does not have the opportunity to do so, resulting in a significant missed opportunity to recover misused state funds.

Pennsylvania’s Governor, Josh Shapiro emphasized that a state-specific False Claims Act would help “collect additional damages and recoup more state dollars that would otherwise be lost to fraud” meant to fund public benefits.  A Pennsylvania False Claims Act would enable the state to encourage insiders to report fraud, potentially increase fraud recoveries, and provide a strong anti-fraud law.

What Pennsylvania HB 1697 and SB 38 Would do if Enacted

Under the federal False Claims Act, a private citizen, called a relator or whistleblower, can file a lawsuit pursuant to the law’s qui tam provision, which enables a private citizen to commence an action on behalf of the government with the financial recovery being returned to the Treasury.  The False Claims Act also provides for an award to the relator or whistleblower in the event of a successful recovery for the government and protections against retaliation.  Similarly, a Pennsylvania False Claims Act created by HB 1697 and SB 38 “would protect and encourage whistleblowers to report the waste, fraud, and abuse of taxpayer money” by creating a mechanism like the federal False Claims Act.   Essentially, these bills could help address the improper use of public funds while ensuring the individual bringing the suit has necessary protective measures in place. Essentially, these bills could help address the improper use of public funds while ensuring the individual bringing the suit has necessary protective measures in place.

As it relates to the prevention of Medicare fraud, when states have a qualifying state False Claims Act, “the federal government gives them an extra 10% of the Medicaid money recovered.”  Without one in place, Pennsylvania is excluded from receiving these potential federal funds.  Similar incentives apply to fraud beyond healthcare billing.  As Representative Frank Burns, sponsor for HB 1697, pointed out, “no matter what kind of scheme someone cooks up, we need to make sure Pennsylvania recoups as much as possible to protect the hard-earned money of our taxpayers.”

Furthermore, as Senator Lindsey Williams explained, “studies have repeatedly proven that the best way to detect and deter [major] level[s] of massive taxpayer fraud is to protect the employees who see it first and who come forward to report it.”  She further argued that the lack of protection and prosecution has resulted in millions of lost dollars.  This situation can be resolved through a Pennsylvania False Claims Act to protect public taxpayer funds from billing fraud.

The TAF Announcement and Reasoning

In TAF’s letter to the Senate, President and Chief Executive Officer, Jacklyn DeMar, wrote that the passing of these bills would result in “less fraud, less waste, more accountability, and no new taxes.”  As a sister organization to the Anti-Fraud Coalition, TAF is “dedicated to fighting fraud and supporting whistleblower enforcement laws,” and it argues in favor of these bills to promote accountability while protecting funds.  In the letter, TAF further highlights the lost recoveries without a Pennsylvania False Claims Act, the multitude of other states with their own False Claims Act, and government protection obligations..

Miller Shah LLP represents whistleblowers around the country in connection with matters under the False Claims Act and similar state laws.  Through these matters and others, Miller Shah supports the protection of public funds.  Miller Shah will continue to monitor the status of the Pennsylvania False Claims Act bills and anticipates providing further updates on its website.