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OMB’s Danny Werfel: Govt Cut Improper Payments $47B Over Three Years

The federal government has cut the rate of improper payments by $47 billion over the past three years, going from the 5.4 percent recorded in fiscal year 2009 to 4.3 percent for fiscal 2012, the Office of Management and Budget‘s controller said in a blog post.

Danny Werfel wrote error rates went down for programs such as Medicare Fee-for-Service, Medicaid, Unemployment Insurance, Earned Income Tax Credit, SNAP, Pell Grants, School Lunch and Retirement, Survivors and Disability Insurance.

During the three-year period, Werfel wrote President Barack Obama’s goal is to avoid $50 billion in improper payments by the end of fiscal 2012.

The Labor Department is working with states to reduce improper payments for unemployment insurance and recently launched a partnership with the New York Labor Department to establish a center of excellence.

The center will facilitate collaboration in developing and implementing strategies to cut improper payments and use data analytics and predictive modeling.

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