'Staggering': Government making $100B in improper payments every year

07/09/2014

Published July 09, 2014

FoxNews.com

The U.S. government is making roughly $100 billion in improper payments every year thanks to a combination of fraud, clerical errors and insufficient IRS enforcement, according to testimony at a congressional hearing on Wednesday.

“The amounts here are absolutely staggering,” Rep. John Mica, R-Fla., said

The problem of erroneous payments – largely from Medicare and other health care programs – is not a new one. But Mica said at the hearing of a House oversight subcommittee that federal agencies reported over $100 billion in improper payments during each of the last five years.

That’s roughly what the Obama administration spent on the Afghanistan war and other security operations last year.

“That’s an incredible amount of money that has been misappropriated, mis-paid,” Mica said.

The money is coming from an array of agencies, and includes tax credits to families that didn't qualify, unemployment benefits to people who had jobs and medical payments for treatments that might not have been necessary.

In 2013, federal agencies made $97 billion in overpayments, according to agency estimates. Underpayments totaled $9 billion.

Congressional investigators say the figures could be even higher.

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