Investigative journalist Nick Shirley created a nationwide sensation when he uncovered $110 million in suspicious government payments to daycare centers operated by Somali-Americans in Minnesota in "one day alone."
This successful effort to fight fraud received praise from the Trump administration.
It also led to concrete action as President Donald Trump signed an executive order establishing an official "Fraud Task Force."
Trump selected Vice President J.D. Vance as the "fraud czar" to lead this campaign.
The president called the problem "massive and pervasive" with "numbers so large" that if the task force is "successful, we would literally be able to balance our American Budget."
Vance's task force acted quickly, targeting the fraud rich state of California.
Their first successful investigation uncovered "an alleged $50 million hospice and healthcare fraud scheme in Los Angeles."
These findings are just the tip of the iceberg as fraud is pervasive throughout federal and state governments. A perfect example is the 340B Drug Pricing Program, which was established in 1992 when Congress passed legislation to provide healthcare assistance to low-income and rural communities nationally.
The bill required "pharmaceutical manufacturers to sell outpatient prescription drugs to participating health care facilities at discounted prices."
Under the program, providers purchase drugs at steep discounts but are reimbursed by insurers and public programs at standard market rates.
However, there are no federal requirements that providers report how the revenue generated through these discounts is used or whether patients receive a direct financial benefit.
These savings were supposed to be offered to low-income patients who needed financial assistance purchasing medication.
Unfortunately, the evidence shows that the savings have not been provided to patients.
According to U.S. Rep. Earl "Buddy" Carter, R-Ga., "340B was intended to give low-income and vulnerable patients access to affordable medicines. The program has rapidly expanded, and a lack of transparency has allowed some entities to pocket the savings without passing them on to patients."
U.S. Representative Diana Harshbarger, R-Tenn., noted that the 340B program has "gaps" that "have let these discounts be misused and diverted from the goal of better access and lower costs for patients most in need."
To address this problem, a bill has been introduced by Reps. Carter and Harshbarger, the 340B Affording Care for Communities and Ensuring a Strong Safety-Net Act (340B ACCESS Act).
The bill would provide "critical oversight and transparency" for a program that has not been adequately monitored, and the cost of U.S. taxpayers is spiraling out of control.
As evidence, let's examine the "prime vendor program," which is used by 90% of the participating healthcare facilities participating to purchase drugs.
As reported by the Congressional Budget Office, in 2010, these health care facilities spent $6.6 billion to purchase drugs. By 2021, the costs had increased almost 700% to an astounding $43.9 billion.
Along with the increasing costs, other issues must be investigated. While the program has expanded, congressional oversight has been minimal and there has been scant evidence that patients in need are benefitting.
Rep. Carter believes, "Congress must act to restore the integrity of the program to better protect vulnerable patients served by safety-net providers."
Undoubtedly, congressional action is required to fight fraud in our healthcare system.
In Louisiana, a report by HEAL Collaborative discovered that among 340B participating entities, between 2014 and 2022, there was an increase, per bed, of 22.5% in assets, "defined as any resource with financial value that the hospital controls."
However, while assets grew, during the same time period, there was a 41% decrease in uncompensated care per bed. Instead of growing uncompensated care per bed as assets grew, Louisiana healthcare facilities abused the 340B program to increase their profits.
Due to this abuse, Louisiana consumers are keenly interested in reform in the 340B Drug Pricing Program. According to a survey of Louisiana residents conducted by the National Consumer League, "77% . . . agree that hospitals receiving 340B discounts should be required to pass those savings on to low-income and vulnerable patients."
Reform is needed in Louisiana and nationwide, especially since the program has grown so large and is projected to expand even more in the years ahead.
Currently, the 340B program "is the second-largest federal prescription drug program, second only to Medicare Part D, and is now larger than Part B, Medicaid, and TRICARE."
With an annual growth rate of 23%, it will "surpass Medicare Part D as the largest government-run drug purchasing program in 2027."
A major reason for the growth was the passage of the Affordable Care Act, which expanded the number of "sites" eligible for the program.
In 1992, there were just 392 "covered entities” and affiliated facilities that were eligible for the program. By 2023, that number had skyrocketed to 56,730.
As the program has grown, the services for low income Americans has decreased by 15%, despite the clear purpose of the original legislation.
Until new legislation is passed requiring hospitals to spend their profits from the program on vulnerable populations, as the 1992 bill intended, these "sites" will continue to financially benefit, while ignoring those in need.
Jeff Crouere, a New Orleanian, is a political columnist and commentator. He hosts "Ringside Politics," nationally on Real America's Voice TV Network & Americas Voice, and weekdays on WGSO 990-AM and Wgso.com. For more information: jcrouere@gmail.com. Read more Jeff Crouere Insider articles — Click Here Now.
© 2026 Newsmax. All rights reserved.