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H.R. 10626House119th Congress (2025-2027)In Committee

HELP STATES Act

Sponsored by Thomas H. Kean, Jr.Rep. Thomas H. Kean, Jr. (R-NJ)
Introduced September 28, 2026

AI-Generated Summary

Updated October 2, 2026 at 5:23 AM UTC

The HELP STATES Act would change Medicaid rules so that states can keep a portion of money they recover from fraudulent overpayments. Starting 18 months after the law takes effect, a state may elect to retain up to 25% of its share of recovered funds instead of sending all of it to the federal government. The retained money must be used for activities that improve Medicaid program integrity, and states must report annually on how the funds are spent.

Key Provisions

  • Adds a new subparagraph to 42 U.S.C. 1396b(d)(3) allowing states, beginning 18 months after enactment, to exclude up to 25% of their pro‑rata share of fraud‑related overpayment recoveries from the amount the federal government receives.
  • States must use the excluded funds for program‑integrity purposes such as audits, investigations, data analysis, and IT systems that help detect, prevent, or recover improper payments.
  • States are required to report to the Secretary at least once a year on how the retained funds were used, in a format the Secretary specifies.

Legislative Activity

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1 earlier action
HouseIntro Referral Latest Action

Referred to the House Committee on Energy and Commerce.

Energy and Commerce Committee

September 28, 2026

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HouseIntro Referral

Introduced in House

September 28, 2026

HouseIntro Referral

Referred to the House Committee on Energy and Commerce.

Energy and Commerce Committee

September 28, 2026

Bill Text

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Introduced in HouseIssued September 28, 2026

I

119th CONGRESS

2d Session

H. R. 10626

IN THE HOUSE OF REPRESENTATIVES

September 28, 2026

Mr. Kean (for himself, Mrs. Kiggans of Virginia, Mr. Wittman, Mr. Valadao, Mrs. Kim, and Mr. Bresnahan) introduced the following bill; which was referred to the Committee on Energy and Commerce

A BILL

To amend title XIX of the Social Security Act to increase the State share of the recovery of certain overpayments under the Medicaid program.

1.

Short title

This Act may be cited as the Helping Encourage Lawful Payments and Strengthen Transparency, Anti-fraud, Tips, and Enforcement Strategies Act or the HELP STATES Act.

2.

Increasing State share of overpayment recovery

Section 1903(d)(3) of the Social Security Act (42 U.S.C. 1396b(d)(3)) is amended by adding at the end the following new subparagraph:

(C)
(i)

For quarters beginning on or after the date that is 18 months after the date of enactment of this subparagraph, in the case that a State recovers during such quarter any amounts which represent an overpayment made to a person or other entity due to fraud, the Secretary shall exclude up to 25 percent (as elected by the State) of the pro rata share of such amounts so recovered to which the United States is equitably entitled, as determined for purposes of subparagraph (A), from the amount of overpayment to be adjusted under this subsection.

(ii)

With respect to any amounts so excluded from the amount of overpayment to be adjusted under this subsection pursuant to clause (i), a State—

(I)

shall use such amounts for activities related to program integrity, which may include audits, investigations, data analysis, investment in information technology systems that improve the detection, prevention, or recovery of improper payments, and other activities associated with the detection of fraud and the recovery of improper payments; and

(II)

not less frequently than annually, shall report to the Secretary (in a form and manner specified by the Secretary) how the State used such amounts.

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