Sometimes used to refer to the Medicare fraud and abuse laws, which prohibit, among other things, paying or receiving “kickbacks” for referral of Medicare patients.
In 1972, federal legislation made it a felony for a person to receive or offer any bribe or kickback in exchange for a referral from another person in Medicare, Medicaid, or any federally financed state health care programs. These laws are aimed at providers who receive compensation for referring patients to other providers, perhaps needlessly, which ultimately drives up the cost of Medicare and Medicaid. Also known as the “bribe and antikickback laws.” Because this legislation is written in very broad language, it is confusing to providers what kind of conduct is allowed and what is prohibited. The Inspector General has created safe harbors for providers; see safe harbor regulations.