06/04/2026
HHS is expanding healthcare fraud enforcement with a new AI-driven program that will review at least five years of audits from states and federal grantees. Led by the Office of the Assistant Secretary for Financial Resources, the effort aims to identify persistent issues such as weak internal controls and ongoing noncompliance. Organizations that fail to address these findings may face penalties, including withheld Medicaid payments, reduced funding, or loss of federal awards.
The department will use AI to examine audits from states and other federal grant recipients, and potentially withhold funds if they aren’t able to fix errors.