Chairman Scott, Rep. Bilirakis Introduce Bill to Prevent Medicaid Fraud

WASHINGTON, D.C. - Today, Senate Committee on Aging Chairman Rick Scott led the bicameral introduction of the Medicaid RAC Improvement Act of 2026 with U.S. Rep. Gus Bilirakis. This legislation closes loopholes in the Medicaid Recovery Audit Contractor (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.

Chairman Scott said, "When waste, fraud, and abuse siphon off resources from programs that hardworking Americans rely on, it hurts everyone. We're seeing it happen in real time, from Ohio to California, and all while our country has $40 trillion in debt, we can't afford to be handing out a single dime in bad payments. The American people deserve accountability and efficiency in how we use their hard-earned money. This bill will add oversight to Medicaid, ensuring resources are going to the people who need it the most-not fraudsters who scam the system. This will boost confidence in these programs and protect Americans who need an extra hand."

Rep. Bilirakis said, "Medicaid serves as a vital lifeline for millions of Americans, and we have a responsibility to ensure every dollar dedicated to the program is used appropriately and reaches those it is intended to help. Unfortunately, gaps in oversight and inconsistent enforcement have left taxpayers vulnerable and weakened our ability to identify improper payments. The Medicaid RAC Improvement Act strengthens transparency, accountability, and oversight so we can better safeguard taxpayer resources while preserving the integrity of this essential program. Protecting Medicaid's integrity is not only about safeguarding taxpayer dollars - it is about ensuring the program remains strong and sustainable for the individuals and families who depend on it. This commonsense legislation strengthens stewardship of public funds, enhances accountability, and helps ensure Medicaid can continue serving our nation's most vulnerable populations for generations to come."

BACKGROUND:

In 2003, Congress created a pilot program in Medicare for recovery audit contractors to help eliminate waste, and after three years, the program corrected more than $1.03 billion in improper Medicare payments. In 2010, Congress extended the Recovery Audit Contractor (RAC) program into Medicaid as a means to stop improper payments, yet, in 2025, Medicaid paid $37 billion in improper payments and most states are not participating in the Medicaid RAC program.

In April 2022, Chairman Scott and U.S. Senator Tim Scott wrote a letter to the U.S. Government Accountability Office (GAO) requesting a review of the Medicaid RAC program.

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

Read the full bill HERE.

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