What is the Administration doing to reduce improper payments?
The Administration recognizes that agencies need to do more with less, and Federal resources must be managed properly. One way to do this is to eliminate wasteful spending. The President has taken several important steps to reduce improper payments.
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1. The President signed Executive Order 13520 on Reducing Improper Payments on November 20, 2009. This Executive Order will prevent and reduce improper payments by increasing transparency, improving agency accountability, and exploring incentives for State and local partners that successfully reduce improper payments.
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2. The President issued a Memorandum Regarding Finding and Recapturing Improper Payments on March 10, 2010. This memo directs agencies to intensify and expand their efforts to recover improper payments that are made by agencies. By increasing these recoveries, we will ensure that additional resources are available for program delivery.
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3. The President issued on June 18, 2010 a memorandum to agencies on enhancing payment accuracy through the establishment of a “Do Not Pay” list. This memorandum will ensure that before agencies make payments, they verify that, for instance, recipients are not dead or suspended from receiving government payments. This list could potentially prevent tens of millions of dollars worth of improper payments annually. -
4. The President's FY 2012 Budget Proposal included a number of mandatory and discretionary proposals that, if enacted, would help improve program integrity for some of the agencies, including the Department of Labor, the Department of Health and Human Services, the Social Security Administration, and the Internal Revenue Service.
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5. The Administration is working to implement reforms and expanded authorities that were recently signed into law. For instance, the Affordable Care Act
contained a number of provisions designed to prevent, detect, and reduce improper payments in health programs. (Learn more at http://www.healthcare.gov)
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6. Agencies are continuing to work to identify solutions to prevent, reduce, and recapture improper payments. Learn more about agency Success Stories here. For example, the Department of Labor recently submitted a proposal to Congress, that if enacted, would help save an estimated $500 million over ten years. (Learn more about the Department of Labor’s proposal and other corrective actions) -
7. The President signed into law the Improper Payments Elimination and Recovery Act on July 22, 2010. The new law will ensure that agencies are cutting down on waste, fraud and abuse, and will help agencies recover improper payments when they do occur. OMB’s implementing guidance can be found here.