FRAUD Act of 2025 (HR 3483)

104 HR 3483 RH: Forcing Real Accountability for Unlawful Distributions Act of 2025 U.S. House of Representatives 2025-10-21 text/xml EN Pursuant to Title 17 Section 105 of the United States Code, this file is not subject to copyright protection and is in the public domain. IB Union Calendar No. 300 119th CONGRESS 1st Session H. R. 3483 [Report No. 119–348] IN THE HOUSE OF REPRESENTATIVES May 19, 2025 Mr. Barrett introduced the following bill; which was referred to the Committee on Veterans' Affairs October 21, 2025 Additional sponsor: Mr. Haridopolos October 21, 2025 Reported with an amendment, committed to the Committee of the Whole House on the State of the Union, and ordered to be printed Strike out all after the enacting clause and insert the part printed in italic For text of introduced bill, see copy of bill as introduced on May 19, 2025 A BILL To amend title 38, to direct the Secretary of Veterans Affairs to use an information technology system to detect fraud, waste, and abuse regarding claims for payment submitted to the Secretary under the Veterans Community Care Program. 1. Short title This Act may be cited as the Forcing Real Accountability for Unlawful Distributions Act of 2025 or the FRAUD Act of 2025 . 2. Detection of fraud, waste, and abuse in programs of the Veterans Health Administration (a) In general Subchapter I of chapter 17 of title 38, United States Code, is amended by inserting after section 1706A the following new section (and amending the table of sections at the beginning of such chapter accordingly): 1706B. Management of health care: detection of fraud, waste, and abuse (a) In general To detect fraud, waste, and abuse in programs of the Veterans Health Administration, the Secretary shall use processes and systems, including the information technology system described in subsection (b), to— (1) analyze a claim submitted to the Secretary by a health care entity or provider that furnishes hospital care, medical services, or extended care services under this chapter; and (2) reanalyze a claim, described in paragraph (1) that the Secretary determines may be fraudulent, after paying such claim. (b) Information technology system The information technology system described in this subsection shall include the following functions: (1) Continuous monitoring of claims to detect patterns that may indicate fraud, waste, or abuse. (2) Analysis of historical and real-time claims data to identify and predict potential fraudulent claims. (3) Ready-made analytic models to identify and analyze fraudulent claims. (4) Post-payment analysis for overuse of services or other practices that create unnecessary costs to the Department. (5) Integration with existing claims processing systems and technologies of the Department. (6) Logging, storage, analysis, and reports regarding the nature, frequency, and financial impact of detected fraudulent claims. (7) Identification of, and machine learning that is based on, patterns of fraudulent claims in order to reduce false positives and predict new forms of fraud. (8) Updates to detect new models of fraud, waste and abuse. (9) Any other function determined necessary by the Secretary. (c) Use of franchise fund To carry out this section, the Secretary shall use funds from the Department of Veterans Affairs franchise fund established under title I of Public Law 104–204 ( 38 U.S.C. 301 note). (d) Report Not later than two years after the date of the enactment of the FRAUD Act of 2025 , and annually thereafter for five additional years, the Secretary shall submit to the Committees on Veterans' Affairs of the Senate and House of Representatives a report regarding the operation of the processes and systems under subsection (a) during the preceding year. Each such report shall include the determination of the Secretary regarding the following elements: (1) The effectiveness of such processes and systems in detecting fraud, waste, and abuse described in subsection (a). (2) The estimated savings to the Department arising from the use of such processes and systems. (3) Any plans to enhance, modify, or add new capabilities to such processes and systems. . (b) Implementation date The Secretary of Veterans Affairs shall carry out section 1706B of such title, as added by subsection (a), not later than one year after the date of the enactment of this Act. 3. Extension of certain limits on payment of pension Section 5503(d)(7) of title 38, United States Code, is amended by striking November 30, 2031 and inserting January 30, 2034 . October 21, 2025 Reported with an amendment, committed to the Committee of the Whole House on the State of the Union, and ordered to be printed