Lansing, Michigan. January 3, 2006. Michigan Governor Jennifer M. Granholm today signed legislation to combat Medicaid fraud by providing incentives for citizens who suspect fraud against Michigan’s Medicaid program to come forward and report it to authorities.

Under the law new Michigan law, employers are prohibited from penalizing employees who initiated, assisted, or participated in an investigation or court action under the Medicaid False Claim Act. As an incentive to encourage citizens to report suspected fraud, whistleblowers could be rewarded with a certain percentage of the recovered funds if the lawsuit is successful.

The legislation is part of a nationwide trend within states and municipalities to enact local versions of the highly successful whistleblower provisions of the federal False Claims Act.  Other states which have passed versions of the FCA are Virginia, Illinois, Tennessee, Florida, California and the District of Columbia.

Any person who suspects fraud or misconduct in the administration of a federal or state grant or contract is strongly urged to confidentially report the fraud through the National Whistleblower Legal Defense and Education Fund’s Report Fraud Now program.