Feds blew $100 billion a year for the past ten years on "incorrect payments" according to MSN Money. On Jan. 15 it was reported that between 2002 and 2012, $688 billion worth of payments were made that should not have been. Naturally this leaves the US Treasury reporting a major loss each and every year. So where is this money going exactly?
"To be clear, the term 'improper payment' covers many problems and is not limited to out-and-out fraud. It can include payments made in error, either through the fault of the agency itself or the person claiming the payment. But what the vast majority of the instances of improper payment have in common is that they represent money that shouldn't be paid out at all leaving the Federal Treasury and not coming back," reports MSN Money.
Feds spending $100 billion a year carelessly and one of the major offenders includes the Department of Health and Human Services. Apparently Medicare Part C and Medicaid both reported billions of dollars in losses in 2013. A less surprising offender? Department of Agriculture's Supplemental Nutrition Assistance Program commonly known as Food stamps.
"The program reported $2.5 billion in improper payments in fiscal 2013, a considerable sum to be sure. The 3.42 percent error rate reflected not just an improvement over the previous year, but an all-time low for the program, which cost $82 billion last year," according to MSN Money.
The feds' $100 billion a year deficit seems to be 100% internal and perhaps could be curbed a bit if properly taken care of. The cycle of taxpayers contributing to a lost cause continues. The more you pay, the more they spend -- and to hear that billions of dollars are gone because of internal errors? That's just even more frustrating.
© Effie Orfanides 2014