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Treasury Secretary Scott Bessent is launching a new initiative to combat fraud in federal health care programs, offering financial incentives to individuals who provide information that leads to enforcement actions.
Under the program, set to begin Monday, whistleblowers could receive between 10 and 30 percent of penalties collected in cases involving fraud against Medicare and Medicaid, according to details reported by the New York Post.
Treasury officials said the payments would come from fines imposed on offenders rather than taxpayer funds. The initiative comes as federal authorities estimate that fraud in the programs exceeds $70 billion annually.
According to Treasury documents cited in the report, individuals “located in the United States or abroad” may qualify for awards if their information results in enforcement actions with penalties exceeding $1 million.
The program is modeled in part on an existing Internal Revenue Service whistleblower system and reflects a broader effort by the Trump administration to address fraud across federal programs.
The move follows recent federal investigations into large-scale fraud schemes, including cases in Minnesota involving alleged misuse of government aid funds. Authorities have said some schemes involved fraudulent billing practices, fake service providers and the use of intermediaries to move funds.
In one reported case, prosecutors accused Feeding Our Future of misusing funds intended for child nutrition programs, alleging the money was diverted to personal expenses and luxury purchases.
Treasury officials said health care fraud can involve tactics such as identity theft, inflated billing claims and money laundering through financial systems, including wire transfers and digital assets.
As part of the effort, the Treasury Department’s Financial Crimes Enforcement Network is expected to issue guidance encouraging financial institutions to monitor and report suspicious transactions linked to potential fraud. Officials say the initiative is intended to strengthen enforcement and reduce losses in federal programs while ensuring resources are directed to eligible beneficiaries.
