President Issues “Improper Payment” Executive Order - December 8, 2009

On November 20, President Obama issued Executive Order 13520, “Reducing Improper Payments.” The Executive Order, which was issued on the heels of the government’s announcement of $55 billion in Medicare and Medicaid improper payments in FY 2009, requires the Office of Management and Budget (OMB) to identify high-priority programs, establish annual and semi-annual targets for reducing improper payments, and issue guidance regarding implementation of the order within 90 days. Within 180 days, each agency, including the Department of Health and Human Services, is required to develop a plan to identify and measure improper payments and meet reduction targets.