US HHS Launches AI Initiative to Detect Health Fraud

The Department of Health and Human Services introduced the AERO initiative to review five years of audit records across all 50 states. This AI-led program aims to strengthen oversight and address concerns regarding hundreds of grantees that have failed to submit required financial audits.

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The United States Department of Health and Human Services (HHS) launched an artificial intelligence initiative on Thursday to detect fraud and waste in federally funded health programs. The program will analyze five years of audit records across all 50 states to strengthen oversight of billions in federal spending. This technological shift targets a backlog of missing audits and follows a broader federal crackdown on healthcare scams.

### AI to Scan Five Years of State Audit Records The new program, named Audit Enforcement and Risk Oversight (AERO), will review at least five years of historical audit data from HHS-funded entities. HHS officials said hundreds of grantees have failed to submit required audits, with some filings delayed by more than two years. Under federal law, any non-federal entity spending at least $1 million in federal funds annually must undergo these audit requirements.

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