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United StatesPublic sector2025 – ongoing

Centers for Medicare & Medicaid Services

FPS2 machine learning for Medicare fraud detection

CMS reported machine learning within a fraud-screening system processing over 11 million claims daily

In progressCompany's own claimOfficial ↗

Problem

Medicare needed to identify suspicious billing before payment and prioritize investigations after payment.

Approach

CMS introduced the original Fraud Prevention System in 2011 and later added machine learning. FPS2 supported payment controls and ranked investigative leads using provider risk information. CMS identified Peraton as its FPS2 contractor in a 2025 update.

Results

over 11 millionMedicare fee-for-service prepaid claims screened daily by FPS, including advanced analytics and machine learning, per CMSCompany's own claim[1]

Takeaway

The daily volume described the broader screening system. CMS did not isolate machine learning's contribution or specify when it entered use.

Categories

Business function
Finance, risk and legal
Innovation type
Process innovation
Evidence
Company's own claim

Sources

  1. Fraud Prevention System 2
    Centers for Medicare & Medicaid Services2026Company publication
  2. DASG Contract Initiatives
    Centers for Medicare & Medicaid Services31 Jul 2025Company publication

Source summaries

[1]Centers for Medicare & Medicaid Services2026

CMS described operational fraud screening and investigative support. It reported daily screening volume and distinguished later machine learning from the system's original launch.

[2]Centers for Medicare & Medicaid Services31 Jul 2025

CMS listed Peraton as the FPS2 contractor. The listed performance period ran from June 2024 to June 2025.

Full details are in the original sources.

Added 1 Nov 2026 · Updated 1 Nov 2026
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