Federal Manager's Daily Report

The administration is seeking support for several budgetary proposals aimed at reducing improper payments in government programs, OMB controller David Mader recently told the Senate Homeland Security and Governmental Affairs Committee.

He said that the improper payment rate increased slightly from 3.53 to 4.02 percent over 2013-2014, driven largely by issues in the Medicare fee for service benefit, the earned income tax credit, Medicaid, unemployment insurance and Supplemental Security Income.

“There is compelling evidence that investments in administrative resources can significantly decrease the rate of improper payments and recoup many times their initial investment,” he said, citing SSA continuing disability reviews that save an estimated $9 for each $1 spent.

He urged approval of elements in the 2016 budget plan include a package of Social Security, Medicare and Medicaid program integrity proposals; investments and proposed changes in law involving the EITC; greater scrutiny of unemployment claims; and granting the Treasury access to the SSA’s full death data, including data from states, to enhance the Do Not Pay Program.

He also noted recent revisions to OMB Circular A-123 and guidance to Labor, HHS, SSA and Treasury directing special efforts there.