Medicare Payment Integrity Enhancement Act of 2026

This bill, known as the Medicare Payment Integrity Enhancement Act of 2026, allows contractors hired to audit Medicare claims to review them before payments are made. Under current rules, these auditors can only check claims after money has already been sent out, but this legislation would expand their authority to stop improper payments in advance. To support this new role, the bill changes how these contractors are paid by linking their compensation to the amount of money they successfully prevent from being paid out incorrectly. Additionally, it requires the government to create a specific funding plan that transfers money from Medicare trust funds to cover these prepayment review costs. The law also mandates that the health department issue rules within a year to explain exactly how contractor pay and savings calculations will work.