FRAUD Act of 2025

This bill directs the Secretary of Veterans Affairs to implement a comprehensive information technology system designed to detect and prevent fraud, waste, and abuse within the Veterans Health Administration, specifically targeting claims submitted under the Veterans Community Care Program. The system will analyze both initial and potentially fraudulent healthcare claims, even after payment, to ensure the integrity of expenditures. Key functions of this advanced system include continuous monitoring of claims, analysis of historical and real-time data , and the application of machine learning to identify and predict fraudulent patterns. It will also conduct post-payment analysis for service overuse and integrate with existing Department systems, with funding sourced from the Department of Veterans Affairs franchise fund. The Secretary is mandated to submit annual reports to Congress for six years, detailing the system's effectiveness, estimated savings, and planned enhancements. Additionally, the bill extends certain limits on the payment of veterans' pensions by moving the expiration date from November 30, 2031, to January 30, 2034.