AG Labrador urges Congress to expand states’ authority to investigate Medicaid fraud

BOISE, Idaho (KIFI) — Idaho Attorney General Raúl Labrador is joining attorneys general from 16 other states in calling on Congress to pass the "STOP FRAUD in Medicaid Act". The legislation that would expand states' ability to investigate and prosecute Medicaid recipient fraud.

"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."

Labrador joined South Carolina Attorney General Alan Wilson and other state attorneys general in a letter urging the House Committee on Energy and Commerce and Senate Committee on Finance to pass the Stop Fraud in Medicaid Act.

Under current federal restrictions, State Medicaid Fraud Control Units can use federal funding to investigate and prosecute fraud committed by Medicaid providers, but not fraud committed by Medicaid beneficiaries or recipients.

The proposed legislation would expand that authority to include recipient fraud.

"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," said Labrador "I will keep fighting to protect this program for the Idahoans who truly need it."

According to the Idaho Attorney General's Office, the U.S. Department of Health and Human Services Office of Inspector General reported that Medicaid Fraud Control Units recovered $4.64 for every dollar spent by states and the federal government during fiscal year 2025.

Nearly $2 billion was recovered through criminal and civil cases during that fiscal year, according to the Attorney General's Office. Those convictions also resulted in 900 individuals and entities being excluded from federal health care programs.

Supporters of the legislation argue expanding the authority of state Medicaid Fraud Control Units would help states recover additional taxpayer money and protect the Medicaid program from fraud.

Attorneys general from Alaska, Arkansas, Florida, Idaho, Indiana, Kansas, Kentucky, Louisiana, Mississippi, Missouri, Nebraska, New Hampshire, North Dakota, Oklahoma, South Carolina, South Dakota and West Virginia signed onto the letter.

More information on medicaid fraud can be found at idaho.gov.