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Jun 26, 2026

EXCLUSIVE: New Bill Could Force Blue States To Fight Healthcare Fraud

Politics

EXCLUSIVE: Sen. Rick Scott Is Moving To Ensure Blue States Have To Fight Medicaid Fraud

Senate Lawmakers Vote On Health Care Bill

(Photo by Andrew Harnik/Getty Images)

Lucy Spence Contributor June 25, 2026 11:59 AM ET June 25, 2026 11:59 AM ET Lucy Spence Contributor Font Size:

Congress is ramping up its efforts to combat healthcare fraud in states reluctant to comply with fraud-recovery programs, the Daily Caller learned.

A bicameral bill introduced Thursday closes loopholes in the Medicaid Recovery Audit Contractor (RAC) program, forcing states to cooperate with federal efforts to tackle healthcare fraud. (RELATED: Obamacare Enrollment Fraud May Cost Taxpayers Billions In 2026, New Study Shows)

The “Medicaid RAC Improvement Act of 2026,” introduced by Republican Florida Sen. Rick Scott and Republican Florida Rep. Gus Bilirakis, “closes loopholes” in the 2010 Medicaid RAC program “so all states participate in the RAC program, and expands the Medicaid RACs improper payment review authority ensuring waste and fraud don’t slip through the cracks,” according to a press release first obtained by the Caller.

Medicaid RAC Improvement Act of 2026 

Congress created a pilot program in Medicare for contractors to eliminate fraud in 2003, raking in $1.03 billion in fraud within three years. The program was expanded to Medicaid in 2010.

Despite the expansion, Medicaid still paid $37 billion in improper payments in 2025 alone. The Centers for Medicare & Medicaid Services (CMS) allows states an exemption from the program, either in full or in part.

According to CMS, “states have considerable flexibility regarding the design, procurement, and operation of their RAC programs.”

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