H.R. 3483 — FRAUD Act of 2025

This section establishes a new section 1706B of title 38, United States Code, requiring the Secretary of Veterans Affairs to implement processes and systems—including a specified information technology (IT) system—to detect fraud, waste, and abuse in Veterans Health Administration (VHA) programs by analyzing claims submitted by health care entities or providers for hospital care, medical services, or extended care services under ch. 17 and reanalyzing potentially fraudulent claims after payment. The IT system must include functions for (1) continuous monitoring of claims; (2) analysis of historical and real-time data to identify and predict fraud; (3) ready-made analytic models; (4) post-payment analysis for overuse or unnecessary costs; (5) integration with existing systems; (6) logging, storage, analysis, and reporting on detected fraud; (7) machine learning to reduce false positives and predict new fraud patterns; (8) updates for evolving fraud models; and (9) other functions as determined necessary by the Secretary. Implementation must occur not later than one year after enactment, using funds from the VA franchise fund (established under P.L. 104-204), with reports to the congressional Committees on Veterans' Affairs required not later than two years after enactment of the FRAUD Act of 2025 and annually thereafter for five years describing effectiveness, estimated savings, and planned enhancements.