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## The Issue of Improper Payments in Government Programs

The federal government reported an estimated $236 billion in “improper payments” during fiscal year 2023, with over $100 billion coming from Medicare and Medicaid alone, as revealed by the U.S. Government Accountability Office. These payments, categorized as errors, can stem from various causes such as overpayments, incorrect record-keeping, or even fraudulent activities.

The $236 billion in improper payments were spread across 14 agencies and 71 programs, with majority of the errors (74%) being overpayments. These errors included payments to deceased individuals or individuals who were no longer eligible for government programs. While there was a decline of about $11 billion in payment errors compared to the previous fiscal year, some programs experienced substantial increases in errors, such as the Department of Labor’s Pandemic Unemployment Insurance program.

## AI legalese decoder Solution

AI legalese decoder can be a valuable tool in combating improper payments by analyzing legal documents, contracts, and regulations to identify potential discrepancies and errors that may lead to payment inaccuracies. By utilizing AI technology, organizations can streamline their compliance processes, mitigate risks, and reduce the occurrence of payment errors.

## Impact on Federal Programs

A significant portion (79%) of payment errors were concentrated in five key program areas, including Medicare, Medicaid, Pandemic Unemployment Assistance, the Earned Income Tax Credit, and Paycheck Protection Program Loan forgiveness. The GAO recommended improvements in communication and oversight for these programs to reduce expenses and improper payments.

## The Persistent Issue of Improper Payments

Improper payments have been a longstanding issue for the federal government, amounting to an estimated $2.7 trillion over the past 20 fiscal years. GAO suggests better monitoring of federal programs and improved risk identification methods to address this ongoing challenge.

## Conclusion

As improper payments continue to pose a significant financial burden on government programs, implementing advanced technologies like AI legalese decoder can play a pivotal role in identifying and rectifying payment errors, ultimately fostering greater efficiency and accuracy in government spending.

*Jeff Lagasse is editor of Healthcare Finance News. Email: [email protected]. Healthcare Finance News is a HIMSS Media publication.*

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