Which law prohibits financial incentives for referrals?

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Financial incentives to influence referrals are prohibited under the Anti-Kickback Statute. This law makes it illegal to offer, pay, solicit, or receive any remuneration to induce or reward referrals for items or services that are paid for by federal health care programs like Medicare or Medicaid. It covers cash, gifts, consulting fees, or other forms of compensation aimed at steering patients toward a particular provider or facility. There are safe harbors that allow certain legitimate, well-structured arrangements, but if a payment or incentive is meant to generate referrals for federally funded services, it can violate the statute. By contrast, Stark Law focuses on self-referral restrictions for physician practices within designated health services and is a separate framework; HIPAA concerns privacy and security, and the False Claims Act deals with fraud in claims submission. So the Anti-Kickback Statute is the one that directly targets financial incentives for referrals.