Section 1. Short title

This Act may be cited as the Strengthening Tools for Oversight to Prevent Medicaid Fraud Act of 2026 or the STOP Medicaid Fraud Act of 2026.

Sec. 2. Promoting electronic verification of non-emergency transportation services and applied behavior analysis services under the Medicaid program

Section 1903 of the Social Security Act (42 U.S.C. 1396b) is amended by adding at the end the following new subsection:

(cc) Electronic verification of non-Emergency transportation services and applied behavior analysis services

(1) In general

A State shall, with respect to medical assistance consisting of specified services furnished under the State plan (or waiver of such plan) of such State on or after January 1, 2027, require the use of an electronic verification system for such services. In the case the Secretary determines that a State is not in compliance with the preceding sentence—

(A)

the Secretary shall notify such State of such determination; and

(B)

the State shall submit to the Secretary, not later than 90 days after receiving such notification, a corrective action plan demonstrating how the State will come into compliance with such sentence by the date that is 1 year after the date of receipt of such notification.

(2) Implementation

Subject to paragraph (3), the provisions of subsection (l)(2) shall apply to a State’s implementation of the requirement for the use of an electronic verification system under paragraph (1) in the same manner as such provisions apply with respect to a State’s implementation of the requirement for the use of an electronic visit verification system under paragraph (1) of such subsection, except that—

(A)

the references to personal care services, home health care services, or both and personal care services or home health care services shall be treated as references to specified services; and

(B)

the reference to electronic visit verification systems shall be treated as a reference to electronic verification systems.

(3) Nonapplication to certain States

Paragraphs (1) and (2) shall not apply in the case of a State that, as of the date of the enactment of this subsection, requires the use of any system for the electronic verification of the furnishing of specified services, so long as the State continues to require the use of such system with respect to the electronic verification of such services.

(4) Definitions

In this subsection:

(A) Electronic verification system

The term electronic verification system means, with respect to specified services, a system under which the furnishing of such services is electronically verified with respect to each element specified in clauses (i) through (vi) of subsection (l)(5)(A).

(B) Specified services

The term specified services means non-emergency transportation services and applied behavior analysis services.