H.R. 3483: Forcing Real Accountability for Unlawful Distributions Act of 2025

This bill, named the "Forcing Real Accountability for Unlawful Distributions Act of 2025" or the "FRAUD Act of 2025," seeks to enhance the detection of fraud, waste, and abuse within the Veterans Community Care Program. Here are the key components of the bill:

Establishment of an Information Technology System

The bill mandates the Secretary of Veterans Affairs to implement an information technology (IT) system aimed at enhancing the analysis of claims. Specifically, this system will:

• Analyze claims for hospital care, medical services, or extended care services submitted by healthcare providers.
• Detect fraudulent claims or instances of overpayment.

Functions of the IT System

The IT system is required to perform several critical functions, including:

• Continuous monitoring of claims to identify patterns indicative of fraud, waste, or abuse.
• Analysis of both historical and real-time claims data to forecast potential fraudulent claims.
• Ready-made analytic models designed to identify and analyze fraudulent claims.
• Post-payment analysis to check for overuse of services that could be financially burdensome to the Department of Veterans Affairs (VA).
• Integration with existing claims processing systems used by the VA.
• Logging and reporting on the nature and financial impact of fraudulent claims.
• Updates to recognize new fraud patterns and improve detection capabilities.

Funding

The implementation of this IT system will be financed using funds from the Department of Veterans Affairs franchise fund established under specific laws related to the VA.

Reporting Requirements

The Secretary is mandated to provide annual reports to the Committees on Veterans' Affairs in both the Senate and House of Representatives. These reports must include:

• The effectiveness of the IT system in detecting fraud.
• The estimated savings generated for the VA from the system's implementation.
• Future plans for enhancing or modifying the system.

The first report is due within two years of the bill's enactment, with subsequent reports following annually.

Timeframe for Implementation

The Secretary of Veterans Affairs must implement the amendments indicated in this bill within one year from the date of enactment.

Duration of Effectiveness

The provisions regarding the IT system will remain effective for seven years from the date of enactment.

Relevant Companies

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