US Treasury’s FinCEN Proposes Whistleblower Rewards to Combat Healthcare Fraud

Medicare and Medicaid are central to healthcare coverage provided by the U.S. federal and state governments, while proceeds from fraud are often moved through shell healthcare entities and cross-border money-laundering networks. The U.S. Treasury Department’s Financial Crimes Enforcement Network, or FinCEN, collects financial intelligence under the Bank Secrecy Act. Healthcare fraud-related reports increased 330% from 2020 to 2025, highlighting risks to taxpayer funds and resources for beneficiaries.

On March 30, 2026, FinCEN issued advisory FIN-2026-A001, urging financial institutions to identify and report suspicious transactions involving Medicare and Medicaid. A proposed rule on whistleblower rewards was published on April 1. Eligible whistleblowers could receive 10% to 30% of collected penalties if their original information leads to a successful Treasury Department or Justice Department enforcement action involving monetary sanctions exceeding $1 million. The public comment period closed on June 1.