Lawmakers push anti-fraud bill as senior living industry calls for balanced enforcement

A proposed anti-fraud bill could add compliance and reporting duties for senior living operators. Industry groups are pushing for enforcement that does not overreach.

The PROOF Act targets state records, but your billing trail is what investigators would read

McKnight's Senior Living reported in September 2026 that the House has passed HR 10326, the Preventing Rip-offs and Obtaining Oversight of Funds (PROOF) Act, and sent it to the Senate. Sponsor Rep. Jefferson Van Drew (R-NJ) says it would give federal investigators access to state records when they probe fraud in federally funded safety net programs, including Medicaid, food assistance, coronavirus-response grants and unemployment benefits. States would have to give the Department of Justice identity verification records, benefit disbursement logs, provider billing statements and demographic information. The US attorney general would report annually to the Judiciary Committees on requests made, programs targeted and convictions. Argentum said it is evaluating the bill. The National Center for Assisted Living said it supports Medicaid program integrity efforts.

Does the PROOF Act add new reporting for my facility?

Not directly, on the reporting from McKnight's: the bill directs states to hand records to the Department of Justice, and Argentum says it creates no new assisted living regulation.

The duty sits with states. Argentum's Maggie Elehwany said the group wants to avoid "duplicative oversight." McKnight's framed the industry's concern as making sure no added administrative burden is passed to providers. That is an implementation worry: a state asked for records by federal investigators may come back to operators for them.

The coverage is also written for assisted living. As reported, the bill's reach is defined by program, Medicaid among them, not by care setting. Skilled nursing operators billing Medicaid should read the text themselves.

Why should a Director of Nursing care about billing records?

Because billing is only defensible when care records support it, and nursing leaders own much of that paper trail. Easier federal access to billing data raises the stakes of thin charting.

That is my reading, not the sponsor's or the trade groups'. McKnight's says senior living operators could face heightened scrutiny of billing practices. A DON's exposure is whether a billed service matches a note, an assessment or an order. Nothing in the coverage ties the bill to CMS surveys, and I would not assume it does. Surveys test compliance on site, while this bill moves records between governments.

Can I rely on the trade groups' reassurance?

Treat it as a position, not a finding. Argentum's statement describes the House-passed text, the Senate can change it, and the group says it is still evaluating implications.

What counts as unnecessary reporting will be decided by states and prosecutors, not by a trade group's statement.

The annual report is also self-graded. The attorney general would count requests, target programs and convictions, which are enforcement outputs. As described, nothing measures what requests cost providers or states, or how many ended without charges. Rising conviction totals would read as success whatever the collateral work.

What should I ask my billing and records vendors?

Ask how quickly they can produce a clean record linking each billed service to its clinical documentation, and who at your end handles that request when investigators call.

Ask your state Medicaid agency whether it plans new provider data requests to meet Justice Department demands. Ask Argentum or NCAL what they are pressing for in the Senate. Staff time is the cost nobody has priced. Every hour an ADON spends pulling charts for a records request is an hour off the floor, and none of the coverage estimates that burden.

Frequently asked questions

Is the PROOF Act law?

No. According to McKnight's, HR 10326 has passed the House and now goes to the Senate.

Which programs does it cover?

Per Rep. Van Drew, Medicaid, food assistance, coronavirus-response grants, unemployment benefits and other federally funded programs.

Does it change Medicaid payment or eligibility?

Not as passed by the House, according to Argentum. That is the group's reading of the text.

Sources: McKnight's Senior Living (Kimberly Bonvissuto, September 2026).

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