Obama to announce initiative to fight Medicare, Medicaid abuse

President Barack Obama plans to announce an expansion of payment recapture audits to fight waste and abuse in Medicare, Medicaid and other government programs.

The president is expected to unveil the initiative during a speech rallying support for his healthcare overhaul today in St. Charles, Mo. A presidential memorandum would direct federal agencies “expand and intensify” the use of audits, such as those performed by recovery audit contractors and Medicaid integrity contractors, according to the White House. The initiative would extend the reach of such audits beyond fee-for-service payments into other government contracts.

Obama also pledged to support bipartisan legislation in the Senate that would expand the authority of government agencies to direct recaptured funds toward audits.

The announcement follows an executive order Obama issued in November 2009 directing the government to move aggressively to rein in improper payments, which were calculated to be $98 billion, with $54 billion attributed to Medicare and Medicaid. The numbers reflect an estimate of payments made in error, though not necessarily the result of fraud.

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