The Supreme Court upheld the Justice Department's decision to dismiss a whistleblower lawsuit alleging a UnitedHealth Group subsidiary overcharged Medicare.
In an 8-1 ruling issued June 16, the court ruled the Justice Department has the authority to dismiss False Claims Act lawsuits brought on behalf of the government by whistleblowers.
In 2012, Jesse Polansky, MD, a former employee of UnitedHealth Group subsidiary Executive Health Resources, now called Optum360, filed a lawsuit alleging the company overbilled Medicare by charging inpatient rates for what should have been outpatient services, according to the Supreme Court's decision.
Under the False Claims Act, whistleblowers, called relators, can file suits on behalf of the government in exchange for a portion of any funds recovered in the case.
The government initially declined to take up the case, a right granted to it under the False Claims Act.
In 2019, the Justice Department moved to dismiss the case as the burdens to produce evidence in the case grew.
"As its discovery obligations mounted and weighty privilege issues emerged, the Government assessed and reassessed whether the suit should go forward," Justice Elena Kagan wrote in the majority opinion in the case.
Dr. Polansky argued the government could not dismiss the case, because it initially declined to get involved. The Supreme Court ruled that the government can move to dismiss a case in which it intervenes.
"We hold that the Government may seek dismissal of [a False Claims Act] action over a relator's objection so long as it intervened sometime in the litigation, whether at the outset or afterward," Ms. Kagan wrote.