Thinking about reporting fraud against the government? It’s normal to wonder if whistleblowers get paid. The short answer is yes, but the amount depends on several factors.
In the United States, most whistleblower payouts come from qui tam lawsuits filed under the False Claims Act (FCA), which allows individuals to report government fraud and receive a share of any money recovered. Employees, contractors, vendors, business partners or others with firsthand knowledge of fraud can file a qui tam lawsuit.
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What Is Government Fraud?
Government fraud under the False Claims Act involves false or improper claims tied to federally funded programs or contracts. These cases are often in the healthcare programs, including Medicare, Medicaid and TRICARE fraud, as well as in defense and homeland security contracts, education and research funding, and other federally funded programs.
Common examples of government fraud include:
- Billing for services or products that were never provided
- Inflating charges or submitting false claims for higher reimbursement
- Paying or receiving kickbacks in exchange for contracts or referrals
- Billing for non-FDA-approved drugs or medical devices
- Providing defective or substandard products to the government
How Does a Whistleblower Payout Work?
Most whistleblower cases never go to trial. Instead, they’re resolved through settlements with the government after an investigation. If the government recovers money, the whistleblower may receive a reward based on a percentage of the recovery.
Whistleblower payouts typically fall between 15% and 30% of what the government recovers. The final percentage depends on several factors, including:
- How early the whistleblower came forward
- The quality and usefulness of the information
- How involved the whistleblower was in the investigation.
False Claims Act recoveries topped $6.8 billion in 2025, with the majority of that money coming from cases originally filed by whistleblowers, according to the Department of Justice.
False Claims Act Healthcare Fraud in Hawai’i
You don’t have to look far to see how whistleblower cases can affect Hawai’i. A recent lawsuit filed by a coalition of state attorneys general, including Hawai’i, accuses CVS Health of overbilling Medicaid for prescription drugs. The case began with a whistleblower complaint and alleges pharmacies charged Medicaid more than private insurers or discount programs, a practice that may have been happening for years.
Cases like this show that one insider speaking up can help uncover practices that impact public healthcare dollars, not just nationwide, but right here at home. Understandably, many people hesitate to come forward because they worry about exposure or retaliation. That’s one of the reasons why whistleblower cases are filed under seal to start with, so the case stays confidential while the government investigates.
While a whistleblower payout is never guaranteed, the law does reward people who speak up when government fraud is proven. With the right legal guidance, whistleblowers can protect themselves, stop misconduct, and, in many cases, receive a meaningful reward for doing the right thing.
About Galiher DeRobertis & Waxman
Galiher DeRobertis & Waxman was founded in 1978 to protect the rights of everyday Hawai’i residents. With offices in Honolulu and Maui, the firm’s Hawai’i trial lawyers represent victims of the Lahaina fires and have successfully battled corporate giants on behalf of victims of asbestos exposure, sex abuse, birth defects and more.
