# Representatives Introduce Medicaid Fraud Incentive Bill

On September 30, 2026, U.S. representatives introduced the proposed HELP STATES Act, which would allow states to retain up to 25% of the federal share of qualifying Medicaid fraud recoveries if the funds are reinvested in Medicaid program-integrity activities. The bill would give CMS and states 18 months to establish eligibility, calculation, and reporting procedures. It creates no current contract or solicitation; if enacted, the reinvestment mechanism could support future state demand for Medicaid fraud detection, prevention, and recovery capabilities.

- Companies providing Medicaid program-integrity, fraud analytics, or recovery services can assess how their capabilities align with the bill’s proposed reinvestment purpose.
- The proposed 18-month implementation period would give CMS and states time to establish procedures, but the bill has not been enacted and creates no current compliance requirement.
- State Medicaid agencies could become future buyers if retained recoveries are reinvested in program-integrity work; procurement activity and requirements are not specified in the signal.

**Jurisdictions:** federal
**Industries:** Healthcare
**Published:** September 30, 2026

### Government Entities
- Centers for Medicare & Medicaid Services (CMS)
- U.S. House of Representatives

### Key Quotes
> Every dollar lost to fraud is a dollar that cannot be used to provide care for Americans who rely on Medicaid.
> — Rob Wittman, U.S. Representative

### Sources
- [Wittman Cosponsors Helping Encourage Lawful Payments and Strengthen Transparency, Anti-fraud, Tips, and Enforcement Strategies Act (HELP STATES) Act | Congressman Rob Wittman](https://wittman.house.gov/newsroom/press-releases/wittman-cosponsors-helping-encourage-lawful-payments-and-strengthen-transparency-anti-fraud-tips-and-enforcement-strategies-act-help-states-act) - Wittman