Bribes or kickbacks for services paid under a Federal health care program constitute fraud by whom?

• A. The payer only
• B. The recipient only
• C. Both the payer and the recipient
• D. Neither party

Answer: (C)

The key idea is that bribery and kickbacks in federal health care programs are illegal because they corrupt referrals and payments. The Anti-Kickback Statute bars paying, offering, soliciting, or receiving any remuneration to induce or reward referrals for services paid by federal programs like Medicare or Medicaid. Because the unlawful incentive can come from either side, both players can be held accountable. The payer who offers or pays the kickback is committing fraud for improperly steering referrals and inflating payments. The recipient who accepts or solicits the kickback is committing fraud by engaging in an improper referral in exchange for illicit compensation. The law targets the incentive itself to protect patient care and truthful billing, so penalties can apply to both parties, including criminal charges and civil sanctions.