Protecting Taxpayers from Fraudulent Providers Act of 2026

119th Congress Introduced by Pete Stauber

The bill makes permanent exclusion from Federal health care programs for providers convicted of fraud-related offenses after enactment.

Introduced in House

Purpose and Intent

Introduces the Protecting Taxpayers from Fraudulent Providers Act of 2026.

The main aim is to permanently exclude health care providers from participating in Federal health care programs if they are convicted of certain fraud-related offenses, with the exclusion applying to convictions occurring on or after the date of enactment.

Key Provisions and Changes

Amends Section 1128 of the Social Security Act (42 U.S.C. 1320a-7).

Adds a new permanent exclusion standard:

For exclusions based on fraud-related convictions (fraud, theft, embezzlement, breach of fiduciary responsibility, or other financial misconduct) occurring on or after enactment, the exclusion is permanent.
This new provision is codified as a new subparagraph (H) under subsection (c)(3) of Section 1128.

Modifies related statutory language to implement the permanent exclusion:

Subsection (c)(3)(B) is amended to include subparagraphs (G) and (H) for applicable exclusions.
Subsection (d)(2)(B)(i) is clarified to reflect that the permanent exclusion pertains to new exclusions under the updated authority (i.e., excluding exclusions under other criteria that are not the new permanent fraud-based exclusion).
Subsection (g) is amended to add a new paragraph (4) clarifying that the preceding exclusion provisions do not apply to exclusions based on the new permanent standard (i.e., this paragraph reinforces the scope for permanent exclusions tied to fraud-related convictions occurring after enactment).

Scope trigger:

Applies to exclusions based on convictions occurring on or after the date of enactment of the new subsection (H).

Who Is Affected

Individuals or entities currently or prospectively enrolled in Federal health care programs (e.g., providers receiving Medicare/Medicaid payments) who are convicted of fraud-related offenses.

Specifically targets criminal offenses related to fraud, theft, embezzlement, breach of fiduciary responsibility, or other financial misconduct.

Procedural and Timeline Aspects

The bill was introduced May 15, 2026, in the House of Representatives by Mr. Stauber and referred to the Committee on Energy and Commerce, and to the Committee on Ways and Means for consideration within their jurisdictions.

The key timing element is the date of enactment, which triggers the permanent exclusion for offenses occurring on or after that date.

The bill does not specify funding, implementation mechanics, or regulatory guidance beyond amending the Social Security Act to codify permanent exclusions.

Summary of Impact

Policy impact: Elevates penalties for fraud-related offenses by making exclusions from Federal health care programs permanent, thereby strengthening deterrence and taxpayer protection.

Practical impact: Providers convicted of qualifying financial crimes after enactment would lose eligibility for participation in Federal health care programs on an ongoing, permanent basis.

Compliance effect: Hospitals, clinics, and other facilities and professionals must avoid or quickly address fraud-related conduct to maintain eligibility for federal program participation.

Note: As introduced, the bill focuses narrowly on permanent exclusions for specified criminal conduct and does not outline accompanying enforcement procedures, reinstatement provisions, or transition rules beyond statutory amendments.