As DOGE Works, Evidence Of FWA Emerges
Even as Democrats excoriate Elon Musk and the Department of Government Efficiency (DOGE) commission for its far-reach and tactics, more word is coming out about the depth of improper payments made through Medicare and Medicaid. While the estimate is down since the COVID pandemic, a new report says there was $88.5 billion in improper payments in 2024, more than 5% of outlays last year.
A Centers for Medicare and Medicaid Services (CMS) fact sheet says improper payments from federal programs can include payment errors or fraudulent payments but most often involve insufficient or missing documentation in reporting by states, providers, or contractors.
My view: fraud, waste, and abuse (FWA) is much higher. Latest estimates suggest FWA is more like 25% of all healthcare costs, up from a traditional 10% norm used before. That would mean FWA accounts for over $1 trillion in the entire healthcare system. With Medicare and Medicaid closing in on $2 trillion, that is about $500 billion a year in these programs.
DOGE efforts have met some injunctions in federal court, but President Trump reiterated his support for the evaluation process so as to reduce wasteful spending.
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#medicare #medicaid #medicareadvantage #managedcare #trump #doge #spending
https://www.modernhealthcare.com/politics-policy/hhs-cms-improper-payments-2024
