Sen. Ashley Moody introduces bill to prosecute Medicaid fraud recipients

Sen. Ashley Moody, R-Fla., is introducing new legislation aimed at closing a legal loophole protecting Medicaid fraud beneficiaries from prosecution, Fox News Digital has learned.

Moody’s STOP FRAUD in Medicaid Act builds on her experience as Florida Attorney General, where she was limited to prosecuting Medicaid fraud only on the provider side. The legislation would authorize state attorneys general and their Medicaid fraud control units to also investigate and prosecute recipients of fraudulent benefits.

“I fought fraud as Florida’s attorney general, recovering millions of dollars for taxpayers, and I’m fighting it now as a U.S. senator: finding and closing loopholes in our laws to strengthen enforcement,” Moody said in a statement to Fox News Digital on Tuesday.

“The STOP FRAUD in Medicaid Act gives state AGs the authority to pursue and prosecute not only providers but also beneficiaries seeking to defraud taxpayers. This will go a long way in winning our war against fraud,” the statement continued.

COMING TO SAY TIM WALZ “ACTIVATED FRAUD,” WHISTLEBLOWERS FAILED AT BOMBSHELL HEARING IN MINNESOTA

Sen. Ashley Moody, R-Fla., leaves the Senate after a vote at the U.S. Capitol on Tuesday, Oct. 21, 2025. (Bill Clark/CQ-Roll Call, Inc via Getty Images)

Moody’s office says federal prosecutors can pursue fraudsters under anti-kickback laws, but said federal groups often let “small fish” slip by. Empowering MFCUs would go a long way to filling the void, they say.

The proposed law could be particularly effective in states like Minnesota, where years of seemingly widespread fraud have led to a quagmire of investigations and finger-pointing.

A new state audit investigating fraud in government. That of Tim Walz Minnesota revealed that the state’s Department of Human Services (DHS) failed to properly investigate allegations of Medicaid kickbacks for years.

SENATE LEADER DOGE MOVES TO FORCE A “RECEIPT” FOR EVERY TAX DOLLAR AFTER MINNESOTA FRAUD SCANDAL

Minnesota Governor Tim Walz saw his re-election bid derailed by revelations of massive fraud in the state. (Anna Moneymaker/Getty Images)

Bribes were a key part of the fraudulent schemes uncovered in the state’s Autism Services Program, with prosecutors describing how providers used financial incentives to attract and retain families to maximize Medicaid billing, CBS News reported in December.

In one case, investigators said an autism center operator fraudulently billed millions using tactics that included offering payments or benefits tied to registration, illustrating how bribes helped inflate claims and large-scale misuse of public funds intended for autistic children.

Minnesota’s Quality Learning Center has been found at the center of an alleged child care fraud scandal in the state. (Madelin Fuerste / Fox News Channel)

The audit recommended that DHS “should amend its administrative rule defining ‘fraud’ to clearly include bribery” and said the Legislature should intervene if that does not occur.

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In a press release, Kristin Robbins, chair of the Minnesota House Fraud Prevention Committee and a Republican state representative running for governor, wrote: “The continued lack of accountability for widespread fraud in this state is astounding. »

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Andrew Mark Miller of Fox News contributed to this report.