Treasury Launches Whistleblower Rewards to Crush Health Care Fraud Schemes

Tipsters could earn millions as Bessent cracks down on $70 billion in annual Medicare and Medicaid losses

Mar. 29, 2026 at 9:25pm

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An extreme close-up photograph of a medical syringe or pill bottle against a pitch-black background, lit by a harsh, direct camera flash to create a stark, gritty, investigative aesthetic, conceptually representing the investigation into healthcare fraud.A new whistleblower program aims to empower citizens to help the government crack down on the staggering $70 billion in annual losses from Medicare and Medicaid fraud.Bloomington Today

Treasury Secretary Scott Bessent is launching a new program on Monday that will reward tipsters with up to 30% of fines imposed on criminals who are trying to bleed Medicare and Medicaid dry. The move comes after a sprawling web of scams by Somali immigrants in Minnesota, who allegedly ripped off government welfare programs to the tune of at least $9 billion since 2018. The Treasury Department will also put US banks on high alert, warning that sophisticated fraudsters are recruiting foreign nationals to steal from federal social programs.

Why it matters

Health care fraud costs taxpayers an estimated $68.7 billion each year, draining critical resources from beneficiaries and driving up the overall cost of care. The new whistleblower program aims to empower citizens to help the government crack down on these sprawling criminal schemes, which have even been linked to funding Islamist terror networks.

The details

The Treasury's whistleblower rewards will come directly from fines, rather than having the American taxpayers foot the bill. Individuals located in the US or abroad who provide information leading to successful enforcement actions resulting in over $1 million in penalties may be eligible for 10-30% of the proceeds. This mirrors a similar IRS scheme. Federal investigators are already probing how Somali scammers in Minnesota set up fake clinics, phony food sites, and ghost housing services to funnel taxpayer cash overseas, including allegedly to groups like Al-Shabaab.

  • On Monday, Treasury Secretary Scott Bessent will announce the new whistleblower reward program.
  • In January, Bessent visited Minnesota, which had become ground zero for a sprawling web of scams by Somali immigrants.

The players

Scott Bessent

The 63-year-old former hedge fund mogul who is the current Treasury Secretary, launching the new whistleblower reward program.

Feeding Our Future

A Minnesota-based group that allegedly bilked $250 million from funds meant to provide food to hungry kids, instead spending the cash on luxury items.

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What’s next

The Treasury Department's Financial Crimes Enforcement Network will issue an advisory on Monday telling lenders to be vigilant in identifying and reporting suspicious transactions potentially related to healthcare fraud schemes.

The takeaway

This new whistleblower program is a bold step to empower citizens to help the government crack down on the staggering $70 billion in annual losses from Medicare and Medicaid fraud. By incentivizing tipsters, the Treasury aims to disrupt sophisticated criminal networks that have even allegedly funneled stolen funds to terrorist organizations.