Final answer:
Federal laws aimed at preventing fraud and abuse in healthcare include the Health Insurance Portability and Accountability Act (HIPAA), the Patient Protection and Affordable Care Act (ACA), and the False Claims Act, among others.
Step-by-step explanation:
Federal Laws Covering Fraud and Abuse in Healthcare
Federal laws that address fraud and abuse within the health care business environment include the Health Insurance Portability and Accountability Act (HIPAA), the Patient Protection and Affordable Care Act (ACA or Obamacare), and the False Claims Act. HIPAA, established in 1996, is crucial in protecting patient information and ensuring that it is handled with confidentiality. The ACA, enacted in 2010, introduced significant reforms to the healthcare system, including efforts to combat healthcare fraud and abuse. Medicare and Medicaid programs also have specific anti-fraud provisions.
Laws such as these are designed to maintain a fair healthcare system and discourage practices like moral hazard and adverse selection. Additionally, healthcare providers are subject to fee-for-service regulations designed to prevent overcharging and unnecessary services.
Healthcare businesses must also be mindful of the False Claims Act, which imposes liability on individuals and companies who defraud governmental programs. Enforcement of these laws is crucial to preventing health care related fraud and protecting consumers as well as the integrity of the healthcare system.