A recent Government Accountability Office report revealed a significant spike in improper payments from federal programs such as Medicare, Medicaid and tax credits for the working poor.
The report shows that improper payments for the federal government jumped from an estimated $105.8 billion in fiscal year 2013 to an estimated $124.7 billion in fiscal year 2014. This increase of almost $19 billion — the first significant increase in recent years — was primarily due to estimates for Medicare, Medicaid and the Earned Income Tax Credit, which represent more than 76 percent of the government-wide estimate, according to the report.
The GAO has made various recommendations, which it said could improve program management and help reduce improper payments in these programs. That includes "improving the use of prepayment edits in Medicare and requiring states to audit Medicaid payments to and by managed care organizations."
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