Snap-O Fact #51

President Obama’s “Improper Elimination & Recovery Act” Fights Fraud.

In 2009, fraudulent and improper payments went up to an incredible $110 billion, the highest amount to in history. To a large extent, this was caused by errors, fraudulent Medicare and Medicaid payments, benefits to dead and jailed individuals, and over payment to government contractors. On July 22, 2010, President Obama signed the Improper Payments Elimination and Recovery Act which is aimed at reducing wasteful payments to $50 billion by 2012, thus halving the amount. The act focuses on 4 ways to reduce improper payments. These are 1) Identification and Estimation of Improper Payments requiring agencies to analyze risk assessments for federal programs. 2) Payment Recapture Audits. 3) Use of Recovered Improper Payments. 4) Compliance and Non-Compliance Requirements.

This legislation also established a do-not-pay list for fraudulent federal contractors and improved the government’s hiring process.

Sources:

http://thomas.loc.gov/cgi-bin/query/z?c111:s1508:

http://www.whitehouse.gov/the-press-office/president-obama-sign-improper-payments-elimination-and-recovery-act

http://voices.washingtonpost.com/federal-eye/2010/07/obama_to_sign_improper_payment.html

http://www.washingtontimes.com/news/2010/jul/22/obama-signs-bill-to-curb-payout-waste/

http://abcnews.go.com/blogs/politics/2010/07/110-billion-in-improper-payments-unacceptable-obama-says/