This bill aims to combat fraud across federal programs by establishing stricter oversight and payment rules in child care, Medicare, Medicaid, and the Children's Health Insurance Program (CHIP). For child care services funded through federal grants, the bill requires states to pay providers based on actual attendance rather than enrollment and allows payments only after services are delivered; providers must also maintain attendance records for seven years and make them available for federal audits. In healthcare, the bill directs federal agencies to notify inspectors general within 60 days whenever payments or the number of providers in a specific geographic area jump by more than 100 percent in a single year, which can trigger deeper investigations. The bill takes effect 180 days after enactment (with some flexibility for states needing legislative changes), and requires the Inspector General of Health and Human Services to conduct audits annually starting five years after enactment. Additionally, the bill directs the Office of Management and Budget to issue guidance ensuring all federal agencies recover improper payments and report recovery amounts annually.
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