Massive Fraud Found In Federal Drug Pricing Program |
Massive Fraud Found In Federal Drug Pricing Program
Until new legislation is passed requiring hospitals to spend their profits from the program on vulnerable populations, as the 1992 bill intended, these “sites” will continue to financially benefit, while ignoring those in need;
Jeff Crouere ——Bio and Archives--April 6, 2026
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Investigative journalist Nick Shirley created a nationwide sensation when he uncovered $110 million in suspicious government payments to daycare centers operated by Somali-Americans in Minnesota in “one day alone.”
This successful effort to fight fraud received praise from the Trump administration. It also led to concrete action as President Donald Trump signed an executive order establishing an official “Fraud Task Force.” Trump selected Vice President J.D. Vance as the “Fraud Czar” to lead this campaign.
What a shocker, the costs of a federal program are skyrocketing, and the intended beneficiaries are being shortchanged.
The President called the problem “massive and pervasive” with “numbers so large” that if the task force is “successful, we would literally be able to balance our American Budget.”
Vance’s task force acted quickly, targeting the fraud rich state of California. Their first successful investigation uncovered “an alleged $50 million hospice and healthcare fraud scheme in Los Angeles.”
These findings are just the tip of the iceberg as fraud is pervasive throughout federal and state governments. A perfect example is the 340B Drug Pricing Program, which was established in 1992 when Congress passed legislation to provide healthcare assistance to low-income and rural communities throughout the nation. The bill required “pharmaceutical manufacturers to sell outpatient prescription drugs to participating health care facilities at discounted prices.”
Under the program, providers purchase drugs at steep discounts but are reimbursed by........