The objective of this review by the Dept. of Health and Human Services (HHS) Office of Inspector General was to estimate the extent of FY 2000 fee-for-service Medicare payments that did not comply with Medicare laws and regulations. Based on HHS¿s statistical sample, HHS estimates that improper Medicare benefit payments made during FY 2000 totaled $11.9 billion, or about 6.8% of the $173.6 billion in processed fee-for-service payments reported by the Health Care Financing Admin. (HCFA). As in past years, these improper payments could range from inadvertent mistakes to outright fraud and abuse. HHS recommendations address the need for HCFA to sustain its efforts in reducing improper payments. Tables and graphs.

The federal government of the U.S. -- the largest and most complex organization in the world -- expended approximately $1.8 trillion dollars in FY 2000. As the steward of taxpayer dollars, it is accountable for how its agencies and grantees spend those funds, and is responsible for safeguarding against improper payments -- payments that should not have been made or that were made for incorrect amounts. This executive guide is intended to identify effective practices and provide case illustrations and other information for federal agencies' consideration when developing strategies and planning and implementing actions to manage improper payments in their programs.