Treasury Secretary Scott Bessent is rolling out a new initiative aimed at cracking down on healthcare fraud — while offering potentially lucrative rewards for those who help expose it.
Under the program, set to launch Monday, whistleblowers could receive between 10% and 30% of fines collected from criminals who defraud Medicare and Medicaid, according to a report by the New York Post.
The payments would come directly from penalties imposed on wrongdoers, not taxpayers.
With estimated fraud losses in those programs exceeding $70 billion annually, potential payouts for tipsters could be substantial.
According to Treasury documents cited by the Post, individuals "located in the United States or abroad" may qualify for awards if their information leads to enforcement actions resulting in penalties of more than $1 million.
The effort mirrors an existing IRS whistleblower program and reflects a broader push by the Trump administration to combat fraud across federal programs.
Bessent's move follows a January visit to Minnesota, where federal investigators have been probing a wide-ranging fraud network involving Somali immigrants accused of siphoning billions from government aid programs since 2018.
Authorities say schemes uncovered there included fake autism clinics, fraudulent food distribution operations, and sham housing services. In many cases, "straw owners" were allegedly used to funnel funds into overseas accounts and assets.
One of the most high-profile cases involved Feeding Our Future, a group accused of stealing $250 million meant to feed children in need. Prosecutors say the money was instead spent on luxury goods, including cars and real estate.
Treasury officials warn that such fraud schemes are not only costly, but also potentially dangerous.
"Our citizens have a right to know that their tax dollars are not being diverted to fund acts of global terror or to fund luxury cars for fraudsters," one official told the Post.
As part of the crackdown, the Treasury Department's Financial Crimes Enforcement Network (FinCEN) is expected to issue guidance urging banks to remain vigilant and report suspicious transactions tied to healthcare fraud.
Investigators say criminals often use stolen patient identities, fake billing, and "upcoding" tactics to inflate claims, then launder proceeds through wire transfers, cryptocurrency, or high-end purchases.
Officials warn that unchecked fraud ultimately drives up healthcare costs and drains resources from those who genuinely need assistance.
The initiative builds on a March 2025 executive order from President Donald Trump mandating a governmentwide zero-tolerance approach to fraud, as well as a new anti-fraud task force led by Vice President JD Vance.
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