The U.S. Department of Health and Human Services said on Thursday that it has launched a new AI-powered initiative to review annual audits and improve oversight of federally funded health programs amid growing concerns over widespread fraud.
The program, called the Audit Enforcement and Risk Oversight initiative, or AERO, will review at least five years of audit records of HHS-funded programs across all 50 states, the department said.
The move follows the Trump administration’s launch of a national anti-fraud task force in March, led by Vice President JD Vance, aimed at cracking down on healthcare fraud schemes.
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Earlier this month, the administration said it would stop new home healthcare and hospice providers from enrolling in Medicare for at least six months due to concerns over fraudulent activities.
The U.S. Department of Health and Human Services said hundreds of grant recipients have failed to submit required audits, with some overdue by more than two years.
The agency added that it will work with states and grant recipients to address audit issues and improve internal controls. It may also take actions such as temporarily withholding payments, terminating grants, or blocking future funding for recipients that do not resolve the problems.
Under federal law, non-federal organizations including states, local governments, nonprofits, and universities that spend at least $1 million in federal funding each year are required to undergo audits.
