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Cutting CMS Payment Errors Saved $17.6 Billion

Stopping payment errors in Medicare, Medicaid, Pell Grants and Food Stamps has saved $17.6 billion dollars in 2011 according to The Office of Management and Budget (OMB).  The Cut Waste Campaign by the Obama Administration has allowed Federal agencies to avoid making over $20 billion in improper payments in the two years since President Obama issued an Executive Order initiating an aggressive campaign against the wasteful payment errors. 

“Because of the sustained commitment from the President, the Vice President, and leaders across the Administration – and the effective use of technology – we are seeing real progress cracking down on this waste of taxpayer dollars that has persisted for far too long,” said OMB Director Jack Lew. “Through aggressive and innovative solutions being deployed by Federal agencies, we are on track to meet the President’s bold directive to prevent $50 billion in payment errors by the end of 2012. This is a good step, but not the end. We will continue to work day and night to prevent taxpayer dollars from being wasted in payments to the wrong people or in the wrong amount.”

To help cut improper payments, the Centers for Medicare & Medicaid Services (CMS) has announced it will launch demonstration programs beginning in January 2012 targeting some of the most common factors that lead to improper payments. The demonstration programs will help strengthen Medicare by aiming at eliminating fraud, waste, and abuse. To learn more about CMS efforts to cut improper payments, please click 2012 Projects.  To read the OMB related press release, click read more.

Sources:  Centers for Medicare & Medicaid Services, Press Release – November 15, 2011 and, The White House, Office of the Press Secretary, Press Release – November 15, 2011  



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