Rep. Pete Stauber
If a provider is convicted of certain fraud-related criminal offenses, then they would be permanently barred from participation in federal healthcare programs under legislation sponsored on May 15 by U.S. Rep. Pete Stauber (R-MN).
“Fraud is rampant in federal programs across the country, as highlighted by the massive fraud scandal that recently rocked Minnesota,” Rep. Stauber said, referring to a fraud scandal involving an estimated $250 million to $9 billion in stolen taxpayer money from social safety-net programs that spans several fronts.
“It has been infuriating to learn about the criminals who enriched themselves with expensive homes, luxury cars, and lavish vacations by stealing over $9 billion in taxpayer dollars meant to help the most vulnerable among us,” said Rep. Stauber. “Minnesotans — and all Americans — are fed up with this abuse and expect immediate action from the government responsible for safeguarding their hard-earned money.”
The congressman introduced the Protecting Taxpayers from Fraudulent Providers Act, H.R. 8865, to permanently prohibit a person, company, clinic, contractor, or other organization convicted of stealing money and committing fraud in government health care organizations, such as Medicare, Medicaid, or CHIP, from ever participating in the programs again.
“I am proud to introduce the Protecting Taxpayers from Fraudulent Providers Act to ensure these critical programs can never again be exploited by bad actors,” he added.
Rep. Stauber on March 12 also unveiled the Stop Fraud by Strengthening Oversight and More Accountability for Lying and Illegal Activity Act, or the Stop Fraud by SOMALIA Act, H.R. 7923, which would ramp up penalties for childcare providers who defraud the federal Child Care and Development Block Grant program.
Introduction of H.R. 7923 followed news of widespread fraud occurring within Minnesota’s childcare assistance programs that was primarily perpetrated by Somali fraudsters, according to the congressman’s staff.