Federal Anti-Kickback Statute Essay

The Federal Anti-Kickback Statute
The Federal Anti-Kickback Statute is a criminal law that prohibits the knowing and willful payment of direct or indirect “remuneration”, to induce or reward patient referrals or the generation of business that involves any service or items payable by the Federal health care programs (e.g., drugs, supplies, or health care services for Medicare or Medicaid patients).[1]
Remuneration can incorporate anything of value and can be of any form other than cash, for example travel tours, expenses for lavish hotel stays or immoderate compensation for medical consultations or referrals.
In some industries, it is allowed to give compensation or reward to those who refer business. But, in the health care, referral is a

The law seeks to prevent overutilization, preserve freedom of choice, limit cost and maintain competition.
Applies to:
This law is not applicable for all referrals. The law only applies to Federal Healthcare Programs. E.g. Medicare, Medicaid.
Exceptions:
Yes, there are some exceptions. Congress has enacted “safe harbors” for various situations that are exempt from prosecution under the Anti-Kickback Statute. The reason for the safe harbor provisions is to insulate certain conducts, or else that would be a felony under the Anti-Kickback provision from prosecution. To be protected by a safe harbor, an arrangement must fit completely in the safe harbor and fulfill all the requirements.
Examples: rental agreements, personal services, management contracts, investments in ambulatory surgical centers, electronic prescribing items and services and payments to bona fide employees.
Penalties for Violation of Act:
Criminal Penalties:
• Violation of the law is considered as a felony. Violators can go to jail upon violation of act. It includes: Fine up to $25,000 and imprisonment for up to 5