When Congress passed ObamaCare, it included enhanced False Claims Act liability and penalties for those who commit fraud against the Health Insurance Exchanges that are a central component of the health care reform legislation enacted in 2010. The law requires each State to establish an "American Health Benefits Exchange" ("Exchange") by January 1, 2014. See the Patient Protection and Affordable Care Act, March 23, 2010 ("PPACA"), Pub. L. 111-148, Sections 1311-1313, 1321, codified at 42 U.S.C. §§ 18031, 18041, colloquially known as "ObamaCare"). In very basic terms, an Exchange is a state-regulated entity from which certain individuals will be eligible to purchase health insurance that is subsidized by the federal government. The concept is that these Exchanges will offer consumers more choices and bargaining power while allowing private insurance companies to compete for the business; in other words, a competitive marketplace. The government will subsidize insurance premiums for individuals with income up to 400% of the poverty line, as well as single adults. The subsidy will be provided as an advanceable, refundable tax credit, and is based on a formula and the type of plan chosen. Recognizing the potential for fraud, Congress took steps to ensure federal False Claims Act liability for fraud involving any federal monies in the Exchanges, and enacted enhanced damages/ penalties provisions. Among these are adding a penalty of 3-6 times the damages to the standard FCA treble damages and $5,500-$11,000 penalty per false claim or violation. In other words, someone found liable for violating the FCA with respect to the Exchanges would have to pay 6-9 times damages plus the penalties per false claim. Hopefully this enhanced liability will provide a deterrent to would be fraudsters as well as an incentive for whistleblowers to come forward with information of wrongdoing. Both will be necessary to help ensure the success and cost effectiveness of ObamaCare. All of this is explored further in the article attached hereto.