The Centers for Medicare and Medicaid Service (CMS) determined that the Medicaid program doled out $14.4 billion in improper payments in fiscal year 2013, according to a report from the Government Accountability Office (GAO).
Currently, the Medicaid program provides health care coverage to about 71.7 million individuals at an annual cost of about $431.1 billion. Because of the program’s large size, the GAO states it is vulnerable to improper payments.
A significant amount of growth of the Medicare program is due to the Patient Protection and Affordable Care Act (PPACA), popularly known as Obamacare.
The GAO report, Medicaid Program Integrity: Increased Oversight Needed to Ensure Integrity of Growing Managed Care Expenditures, was compiled to ensure Medicaid program integrity, but found gaps in state and federal efforts to maintain that integrity. (See GAO Medicaid Program Integrity.pdf)