May 18, 2026
The Honorable Lloyd Smucker
302 Cannon House Office Building
Washington, DC 20515
Dear Representative Smucker,
On behalf of National Taxpayers Union, the nation’s oldest taxpayer advocacy organization, I write to express our strong support for H.R. 8804, the Medicare Payment Integrity Enhancement Act of 2026. This legislation’s commonsense reforms to Medicare’s payment procedures will safeguard taxpayer dollars from improper payments and strengthen the solvency of a key entitlement program millions of seniors depend on.
Any serious effort to shore up our nation’s finances must address the unsustainable growth of federal entitlement programs. Mandatory spending and interest payments on our debt now account for roughly two-thirds of the federal budget, and Medicare’s burden on taxpayers will only worsen as the population continues to age. Amid these pressures, allowing billions in taxpayer dollars to routinely go to waste through erroneous payments is simply unconscionable.
Improper payments in federal programs have been a persistent problem costing taxpayers hundreds of billions of dollars every year. Since 2003, the federal government has made over $2.8 trillion in improper payments. Because of its size and complexity, Medicare is a key contributor to this problem. According to the Government Accountability Office (GAO), in fiscal year 2025 alone, Medicare reported over $56 billion in improper payments. That’s more than $1 billion in taxpayer funds every single week.
Medicare’s current oversight architecture is woefully inadequate to curb payment errors in a meaningful way. A key component of Medicare’s oversight mechanism involves the use of Recovery Audit Contractors (RACs) to conduct post-payment reviews to identify and recover improper payments. However, these audits only occur once taxpayer funds have already left the Treasury. Even when payment errors are identified, the administrative cost of recovering these funds is often prohibitive. This reactive model fails to ensure the careful stewardship of tax dollars in Medicare.
The Medicare Payment Integrity Enhancement Act of 2026 is a welcome reform that will enhance Medicare’s program integrity by authorizing RACs to conduct targeted reviews of suspicious claims before any funds are disbursed. In line with previous recommendations by the GAO, this proactive approach moves away from an inefficient “pay and chase” system and safeguards the Medicare Trust Fund from being drained by preventable payment errors.
Scandals involving fraudulent government payments and the widespread misuse of taxpayer dollars have made headlines around the country in recent months. Commonsense fixes like this legislation are exactly the kind of practical, good-government reforms needed to get the nation’s fiscal affairs in order and restore the public’s trust in government. NTU is proud to support this legislation and looks forward to working with you to help it become law.
Sincerely,
Alexander Ciccone
Policy and Government Affairs Manager
National Taxpayers Union