HHS to Use AI to Check States’ Medicaid Audits: States of Play

May 21, 2026, 6:30 PM UTC

HHS Using AI on Medicaid Audits

The Trump administration will begin using artificial intelligence to analyze states’ efforts to prevent fraud in Medicaid, Ganny Belloni reports.

HHS announced it sent a letter to 50 state governors informing them the agency will use “next-generation AI analytical tools” to search for persistent noncompliance with fraud audits. Unresolved fraud findings and delinquent audit submissions may result in Washington withholding payments for the program, which is jointly funded by state and federal governments.

“Grantees who want to work with us to fix these problems will have a partner. Those that don’t may face ...

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