Government Launches Site To Reduce Payment Fraud, Errors - InformationWeek
IoT
IoT
Software // Information Management
News
11/17/2010
01:34 PM
50%
50%
RELATED EVENTS
Data Tells: Dissecting Every Day Data
May 31, 2017
Join us as the author of the book "Everydata: The Misinformation Hidden in the Little Data You Con ...Read More>>

Government Launches Site To Reduce Payment Fraud, Errors

In announcing VerifyPayment,gov, the Office of Management and Budget reported it recovered about $687 million in improper disbursements last year.

Best Government Websites
(click image for larger view)
Best Government Websites

The Office of Management and Budget (OMB) is turning to the web to help build on momentum to stop improper payments from costing the federal government unnecessary cash.

The OMB said this week it's teaming with the Department of Veterans Affairs to pilot a new website, VerifyPayment.gov, which will act as a centralized database for information about those ineligible for payments from the federal government, according to a blog post by OMB director Jeffrey Zients.

The website will allow authorized employees to review available databases to confirm a payment recipient's eligibility before releasing federal funds, with the goal of reducing improper payments. The site replaces a "Do Not Pay" list the government was maintaining and eventually access will be extended to other government agencies.

The site was launched in a transparency and accountability move, and "because ultimately, it's your money at stake," said Zients.

The website posts information about improper payments agencies are making, such as the amount per agency and a list of programs with the highest number of errors resulting in improper payments.

The site defines improper payments as occurring "when funds go to the wrong recipient, the recipient receives the incorrect amount of funds (including overpayments and underpayments), documentation is not available to support a payment, or the recipient uses funds in an improper manner."

The Department of Health and Human Services was the biggest offender of improper payments in fiscal year 2009, with $71.4 billion misappropriated by that department, according to the site. This fact is not surprising, given that two Medicare programs -- Medicare Fee For Service and Medicare Advantage -- and the Medicaid program are listed on the site as three of the top four high-error programs.

Overall, the federal government made about $125 billion in improper payments in 2010, an increase of $15 billion from the previous year.

As a way to eliminate federal waste, fraud, and abuse, President Obama issued a directive in March for agencies to recapture money they've improperly paid out and to prevent such payouts from happening in the future.

In his blog post, Zients reported success in recapturing improper payments in fiscal year 2010, which ended Sept. 30. Federal agencies recovered about $687 million, with $611 million discovered through agency payment-recapture audits, he said. The number represents a significant increase from previous years, and is the highest reported amount in the six previous years of agency reporting, Zients added.

Comment  | 
Print  | 
More Insights
Comments
Newest First  |  Oldest First  |  Threaded View
How Enterprises Are Attacking the IT Security Enterprise
How Enterprises Are Attacking the IT Security Enterprise
To learn more about what organizations are doing to tackle attacks and threats we surveyed a group of 300 IT and infosec professionals to find out what their biggest IT security challenges are and what they're doing to defend against today's threats. Download the report to see what they're saying.
Register for InformationWeek Newsletters
White Papers
Current Issue
2017 State of Data and Analytics
Today's companies are differentiating themselves using data analytics, but the journey requires adjustments to people, processes, technology, and culture. 
Video
Slideshows
Twitter Feed
InformationWeek Radio
Archived InformationWeek Radio
Join us for a roundup of the top stories on InformationWeek.com for the week of November 6, 2016. We'll be talking with the InformationWeek.com editors and correspondents who brought you the top stories of the week to get the "story behind the story."
Sponsored Live Streaming Video
Everything You've Been Told About Mobility Is Wrong
Attend this video symposium with Sean Wisdom, Global Director of Mobility Solutions, and learn about how you can harness powerful new products to mobilize your business potential.
Flash Poll