Dive Brief:
- The U.S. government lost $124 billion through improper payments in 2014, a sharp increase from the $105.8 billion lost in 2013, according to a new Government Accountability Office (GAO) report.
- The improper payments are attributed to 124 programs across 22 agencies for fiscal year 2014.
- The nearly $19 billion increase was primarily due to the Medicare, Medicaid, and Earned Income Tax Credit programs, the GAO says. It reports those programs are responsible for more than 75% of the government-wide improper payment estimate.
Dive Insight:
Given federal spending for Medicare and Medicaid is projected to rise significantly, actions must be taken to reduce the improper payments coming from these programs, GAO analysts say.
"The federal government continues to face an unsustainable long-term fiscal path," they wrote, noting the GAO has been reporting on issues around improper payments for years.
Its recommendations include:
- Strengthening verification of Medicare providers and suppliers;
- Identifying susceptible programs;
- Developing better methodologies to estimate improper payments;
- Reporting improper payment estimates as required; and
- Implementing corrective actions.
"Absent such continued efforts, the federal government cannot be assured that taxpayer funds are adequately safeguarded," the reports stated.