Finance

Last Year The US Government Gave $1 Billion In Benefits To Dead People.

By Daniel M

April 08, 2019

Federal Agencies Admit To $1.2 Trillion In Improper Payments Since 2004

Since 2004, twenty large federal agencies admit paying out an astonishing $1.2 trillion in improper payments. That amounts to more than one-quarter of President Trump’s proposed $4.7 trillion budget for 2020. Last year, these improper payments totaled $140 billion – that’s about $12 billion per month.

But what exactly is an improper payment? Federal law defines the term as “payments made by the government to the wrong person, in the wrong amount, or for the wrong reason.”

In other words, there’s a lack of basic in-house financial controls within the largest federal agencies. When people or companies receive money they don’t deserve, it erodes our trust in government, our economy and government’s ability to finance everything from defense to health care.

Improper payments in health care are especially troubling. In 2011, when President Barack Obama signed the Affordable Care Act, Congress vowed to help pay for it by rooting out waste, fraud, corruption and taxpayer abuse from the Medicare and Medicaid programs.

It never happened.

In fact, the improper payments within these programs soared from $64 billion in 2012 to $85 billion today.

The biggest offenders across government include: Human & Human Services (HHS); Internal Revenue Service (IRS); Social Security Administration (SSA); and the departments of Defense (DOD), Labor (DOL), and Education (ED).

What were some the ways these agencies wasted our tax dollars last year?

The examples are endless.

The government paid doctors who were stripped of their medical license. Farmers were overpaid $242 million on crop subsidies, insurance, direct payments, and loans. Unemployment insurance recipients received $3.6 billion in over payments administered by the states through the Department of Labor. The Pentagon overpaid $1.2 billion for things like civilian, military, retirement and travel pay, health benefits, and more.

Here are 10 examples of what $140 billion in improper federal payments could have purchased:

The lack of accounting control is so bad that the $140 billion cost in bureaucratic mistakes exceeded the entire executive agency payroll. Despite this, 99.7 percent of the federal workforce is rated “highly successful,” and more than one million bureaucrats received a performance bonus last year.

The 1.3 million bureaucrats in the executive agencies earned $120 billion last year according to our data at OpenTheBooks.com. Therefore, for every $1 million in federal payroll, the agencies admitted to $1.2 million in improper payments.

So, aren’t federal agencies working to recapture these improper payments? Not exactly. In fact, outside of overpaid contractors, the Office of Management and Budget says that recapture audits don’t make financial sense. They argue that it costs too much to claw back the improper payments.

The American people need to raise our voice. It’s time to crack down. Every dollar that goes toward an improper payment is a dollar taken from a taxpayer or diverted from a critical government function. Tell Congress and the Administration to put in place better safeguards to prevent this massive waste of national resources.

Story cited here.