OIG Recognizes New Local Transportation Safe Harbor and Exceptions to CMP in Updated Fraud and Abuse Regulations

On December 7, 2016, the Department of Health and Human Services Office of Inspector General (OIG) issued a long-awaited final rule (Final Rule) that expands the safe harbor regulations under the Anti-Kickback Statute (AKS) and codifies revisions to the definition of “remuneration” under the Civil Monetary Penalties Law (CMP). The Final Rule,which takes effect January 6, 2017, establishes a new safe harbor that protects free or discounted local transportation arrangements and also provides guidance on permissible forms of remuneration under the CMP’s prohibition on certain inducements to federal health care program beneficiaries (Beneficiary Inducements CMP). The Final Rule largely implements changes consistent with the OIG’s 2014 proposed rule but with important substantive modifications to the requirements for local transportation arrangements.