Testifiers detail Pennsylvania’s nationwide leadership in fighting public benefits fraud
Shapiro Administration has prevented nearly $179 million in fraudulent payments
Rep. Sean M Dougherty May 7, 2026 | 3:01 PM
PHILADELPHIA, May 7 – As more than 4 million Pennsylvanians rely on taxpayer-funded public assistance programs like Medical Assistance or the Supplemental Nutrition Assistance Program (SNAP), the need to protect tax dollars and ensure the programs are being used for people who actually need them is more important than ever. The House Majority Policy Committee convened a hearing in Philadelphia Thursday afternoon, co-hosted by Reps. Pat Gallagher (D-Phila.) and Sean Dougherty (D-Phila.), to demonstrate how Pennsylvania has become a national leader in safeguarding taxpayer programs.
“Taxpayer-funded programs represent a promise to our neighbors. They expect that these dollars are managed responsibly, delivered efficiently and protected from waste, fraud and abuse. When that trust is compromised, it impacts the real people who rely on these services every day,” Gallagher said. “Safeguards should be strong and effective, but also fair and practical ensuring that eligible individuals and providers are not burdened by unnecessary barriers. Our goal is not only to prevent misuse, but ensure these programs work as intended.”
A recording of Thursday’s hearing is available here.
According to the Pennsylvania Office of the Inspector General (OIG), the Shapiro Administration has saved nearly $179 million for taxpayers by preventing fraudulent benefits from being distributed. In 2025 alone, the Shapiro Administration prevented more than $61 million in fraudulent payments. Pennsylvania Inspector General Michelle Henry says this is the result of the office investigating applications before payment goes out and the strong work of the Pennsylvania Dept. of Human Services (DHS), which refers questionable program applications to the OIG. Pennsylvania’s front-end, pre-payment approach to catching fraud is not the nationwide normal, and experts have identified Pennsylvania as a leader in preventing fraud.
“Program integrity is about protecting access to benefits. Every dollar lost to fraud is a dollar that cannot serve a Pennsylvanian who genuinely needs help. Strong integrity systems are essential to maintaining both public trust and the long-term sustainability of these programs,” said Inspector General Henry. “Through this partnership, OSIG has helped prevent hundreds of millions of dollars in improper payments, while also developing operational models that prioritize early detection and rapid response.”
Of the more than 1.1 million applications filed for Medical Assistance, SNAP and other public benefits, DHS only referred approximately 1.8 percent of those applications to the OIG for further scrutiny. Less than 8,000 of those applications received a reduction in benefits. Testifiers say this paints a picture not of widespread fraud, but of a carefully calibrated fraud prevention system doing what its meant to do.
“This is an important conversation. Every single day, someone comes into our office that has experienced fraud or exploitation. Our job is to help and prioritize our neighbors so that they’re not a product of fraud, so that they’re not exploited,” said Dougherty. “We have a responsibility to safeguard our taxpayer dollars and preserve the integrity of the programs that millions of our neighbors depend on every day.”
According to DHS Secretary Valerie Arkoosh, the majority of fraud in the Medicaid program is committed by providers, not benefits recipients. The DHS Bureau of Program Integrity reviews and monitors providers, referring providers suspected of Medicaid fraud to the Pennsylvania Office of Attorney General’s Medicaid Fraud Control Section, currently ranked number one nationally in criminal convictions. In the state’s 2024-25 Fiscal Year, 330 Medical Assistance providers were terminated from the state’s program, saving taxpayers nearly $36 million.
“Every day, PA DHS works hard to administer life-sustaining, essential services to millions of Pennsylvanians. Programs like SNAP and Medical Assistance provide critical assistance to Pennsylvanians in need of support,” said Secretary Arkoosh. “At the same time, PA DHS is ensuring that the taxpayer dollars that fund these services are used as intended: by Pennsylvanians eligible for them. High quality service provision and program integrity can coexist – and Pennsylvania is proof of this.”
While Pennsylvania continues to be a leader in protecting taxpayer dollars, testifiers say more help is needed to protect vital public benefits programs in Pennsylvania. Right now, the commonwealth is only able to prosecute bad actors under the federal False Claims Act, which requires the federal government to also be defrauded. In July 2025, the House passed the Pennsylvania False Claims Act, sponsored by Rep. Frank Burns (D-Cambria), which would allow both the government and private individuals to sue an entity submitting a false claim. Testifiers say this would help the state prosecute more cases and allow individual whistleblowers to report fraud.
“Public assistance programs exist to help families, seniors and vulnerable residents get back on their feet, not to be exploited by fraudsters looking to game the system. A state False Claims Act would help Pennsylvania crack down on those who defraud taxpayer-funded programs and send a clear message that abuse of public benefits will not be tolerated,” said House Majority Policy Chairman Ryan Bizzarro. “The House passed this legislation last July. It’s now on the Senate to get this bill across the finish line and to the governor’s desk.”
Thursday’s hearing was held at Holy Family University and featured testimony from Pennsylvania Inspector General Michelle A. Henry; PA Dept. of Human Services Secretary Valerie Arkoosh, MD, MPH; and Randall Fox, a partner at Kirby McInerny LLP and the Anti-Fraud Coalition’s 2021 Whistleblower Lawyer of the Year. Testimony submitted for Thursday’s hearing can be found here.
Information about this and other House Democratic Policy Committee hearings can be found at pahouse.com/policy.