GOP bill targets Medicare, Medicaid fraud

Republicans on the House Budget Committee have introduced legislation that provides federal investigators with $28 billion through 2030 to fight health care fraud.

The Anti-Fraud Fund Act, introduced by Rep. Blake Moore, R-Utah, and House Budget Committee Chairman Jodey Arrington, R-Texas, would significantly expand resources for the Health Care Fraud and Abuse Control Program, which targets fraud in Medicare and Medicaid.

The legislation would provide $7 billion annually from fiscal years 2027 through 2030 to fund additional investigators, prosecutors, and advanced technology for the Department of Justice and the Department of Health and Human Services.

Moore said the proposal builds on what Republicans describe as the Trump administration's aggressive effort to root out government waste.

"The Health Care Fraud and Abuse Control Program has existed for thirty years, and under the Trump Administration, CMS Administrator Dr. Oz, and Deputy Administrator Kim Brandt, it has proven to be one of the most effective tools to combat fraud in our health care system," Moore said in a news release.

"This joint DOJ-HHS program has a 7:1 return in dollars saved for every dollar spent. I am confident that providing these immediate funds through the Anti-Fraud Fund Act over the next four years will empower Dr. Oz's team to bring accountability to Medicare and Medicaid providers and ensure good stewardship of tax dollars."

According to preliminary Congressional Budget Office estimates cited by Moore's office, the measure would generate at least $168 billion in net savings over the next decade, returning roughly $7 for every dollar invested in anti-fraud efforts.

Arrington argued the legislation is needed because fraud continues to siphon enormous sums from taxpayer-funded health care programs.

"$275 million in taxpayer dollars are stolen every day from the Medicare and Medicaid programs," Arrington said in a statement. "The Anti-Fraud Fund Act is a commonsense bill that strengthens CMS's ability to prevent, detect, investigate, and prosecute health care fraud."

Politico reported the legislation aligns with one of President Donald Trump's top second-term priorities: cracking down on government fraud.

The proposal also comes as some House Republican fiscal conservatives have expressed concern about the cost of the administration's pending reconciliation package, which includes approximately $95 billion for military operations involving Iran and additional farm assistance.

Arrington told Politico that Republicans could pursue another reconciliation bill after the November midterm elections that includes additional anti-fraud initiatives.

"This is not for this moment," Arrington said of the current spending package. "We have to keep this so clean."

The bill also follows new actions by the Trump administration targeting suspected Medicaid fraud.

Health and Human Services Secretary Robert F. Kennedy Jr. announced Tuesday that the administration is pausing more than $1 billion in Medicaid payments to California and Minnesota over what officials called suspected fraud and compliance concerns.

Kennedy said the states must provide documentation showing the payments were legitimate before the funds are released.

CMS Administrator Dr. Mehmet Oz also announced expanded authority to permanently remove fraudulent providers from federal health care programs as the administration intensifies what the White House has called an "unrelenting" campaign against waste, fraud, and abuse.

Reuters contributed to this report.