Summary of H.R. 7569: Health Care Fraud Penalty Increase Act

Overview

H.R. 7569, the Health Care Fraud Penalty Increase Act, is a bill introduced in the U.S. House of Representatives on February 13, 2026. The main purpose of the bill is to increase the penalties for individuals and organizations found guilty of health care fraud.

Key Provisions

• Increases the maximum prison sentence for health care fraud from 10 years to 20 years
• Increases the maximum fines for health care fraud from $250,000 to $500,000 for individuals and from $500,000 to $1 million for organizations
• Expands the definition of health care fraud to include additional types of fraudulent activities, such as the illegal distribution of prescription drugs
• Requires the U.S. Attorney General to review sentencing guidelines and make recommendations for further increases to health care fraud penalties

Affected Parties

• Individuals and organizations found guilty of committing health care fraud, including doctors, hospitals, medical suppliers, insurance companies, and patients
• Federal law enforcement agencies responsible for investigating and prosecuting health care fraud
• Health care consumers who may be impacted by increased costs or reduced access to services due to enhanced fraud prevention efforts

Procedural Details

• The bill was referred to three House committees for consideration - the Judiciary Committee, the Energy and Commerce Committee, and the Ways and Means Committee
• No timeline has been set for the committees to complete their review and potentially advance the bill for a full House vote

Overall, H.R. 7569 aims to deter health care fraud and strengthen the penalties for those found guilty of such crimes, which are estimated to cost the U.S. health care system tens of billions of dollars each year. The bill's supporters argue that tougher penalties are necessary to combat the significant financial and public health impacts of health care fraud.