Arrington said the legislation was developed as officials confront what he called “a $275 million a day problem” involving CMS. Arrington said the problem extends well beyond health care, citing what he described as a Government Accountability Office estimate of “upwards of $500 billion a year” in federal fraud. “But then the biggest piece of this fraud is where we’re spending the most money, and that’s in healthcare,” Arrington said. Because significant federal funding flows through states, Arrington said, “we need the states to be held accountable.” “We don’t need a fraud fund to do that,” Arrington said.