AG Labrador Urges Congress to Pass the STOP FRAUD in Medicaid Act

BOISE, ID — Attorney General Raúl Labrador joined South Carolina Attorney General Alan Wilson and 15 other state attorneys general in a letter to the House Committee on Energy and Commerce and the Senate Committee on Finance urging swift passage of H.R. 5364 and S. 4176, both known as the “STOP FRAUD in Medicaid Act.”

“Every year, criminals steal billions from a program meant to protect our most vulnerable citizens by lying their way onto Medicaid rolls,” said Attorney General Labrador. “Federal law currently ties investigators’ hands unless the fraud comes from a provider, letting recipient fraud go unchecked. The STOP FRAUD in Medicaid Act gives Idaho and other states the authority to run down beneficiary fraud with the same force we already use against dishonest providers, and I will keep fighting to protect this program for the Idahoans who truly need it.”

Currently, federal restrictions on State Medicaid Fraud Control Units limit the states to investigating and prosecuting Medicaid provider fraud. The STOP FRAUD in Medicaid Act would expand the ability of states to investigate and prosecute Medicaid beneficiary, or recipient, fraud as well, giving Idaho’s Medicaid Fraud Control Unit new tools to go after fraud that currently falls outside its reach.

The Medicaid program is a vital lifeline for millions of our nation’s most vulnerable citizens. To protect these individuals and the program’s integrity, the letter argues that federal funding restrictions should be lifted to allow State Medicaid Fraud Control Units (MFCUs) to investigate and prosecute Medicaid recipient fraud.

The Department of Health and Human Services Office of Inspector General found that in fiscal year 2025, MFCUs recovered $4.64 for every dollar spent by states and the federal government. For fiscal year 2025, almost $2 billion was recovered from criminal and civil cases combined. These MFCU convictions led to OIG exclusions of 900 individuals and entities from federal health care programs.

These recoveries and convictions have been made even though federal funding is currently restricted from being used by MFCUs to investigate and prosecute Medicaid recipient fraud in the first place. Passage of the STOP FRAUD in Medicaid Act would allow states to ensure taxpayer dollars are stewarded wisely and not stolen.

The following states joined South Carolina in this letter: Alaska, Arkansas, Florida, Idaho, Indiana, Kansas, Kentucky, Louisiana, Mississippi, Missouri, Nebraska, New Hampshire, North Dakota, Oklahoma, South Dakota, and West Virginia.

Read the letter here.

Read more about my fight on medicaid fraud here.