Improper US Government Payments Hit $98 Billion

As the nation continues to debate the House of Representatives health care reform bill, new statistics have emerged showing that improper payments made by the federal government to people, firms, and contractors rose to $98 billion this year. Over half of the errors were reportedly made in the Medicare and Medicaid programs, which according to Budget Director Peter Orszag, shows the need for some type of health care reform.

Improper payments in the Medicare and Medicaid programs totaled $55 billion in fiscal 2009, according to documents provided by OMB.

Medicare covers healthcare for the elderly and some disabled, while Medicaid does the same for the poor.

Orszag said the error rate for payments under Medicare Advantage, where private insurers offer coverage to Medicare beneficiaries, jumped to 15 percent, or to $12 billion, in fiscal 2009. The error rate was 10 percent in fiscal 2008.

"This was not the result of methodological changes. This is one of the reasons why, as part of health reform, we believe there are crucial changes necessary to the Medicare Advantage program," he said on a telephone conference call.

Continued at CNBC.com…

Obama Calls for $250 Payments to Seniors

President Barack Obama is asking congress to pass a new plan to give senior citizens $250 payments next year to compensate for not receiving any increase in their social security payments. For the first time since 1975, there will be no increase to the amount recipients of social security checks receive since it is pegged to the inflation rate, which was negative this year.

"Even as we seek to bring about recovery, we must act on behalf of those hardest hit by this recession," Obama said in a statement. "This additional assistance will be especially important in the coming months, as countless seniors and others have seen their retirement accounts and home values decline as a result of this economic crisis."

Obama's proposal is similar to several bills in Congress. The $250 payments would also go to those receiving veterans benefits, disability benefits, railroad retirees and retired public employees who don't receive Social Security. Recipients would be limited to one payment, even if they qualified for more.

The White House put the cost at $13 billion. Obama said he would not allow the payments to come out of the Social Security trust funds, further eroding the finances of the retirement program. Social Security already is projected to pay out more in benefits than it collects in taxes in each of the next two years.

Continue reading at APnew.MyWay.com…

IRS Adds Functions to Online Payment Agreement Application

Earlier today the IRS introduced new features to their interactive Online Payment Agreement application. The changes will make it easier for taxpayers and their authorized representatives to make changes to existing installment agreements.

According to the news release, the system will now permit:

• Individuals to revise their payment due dates and/or amounts on existing agreements.
  Individuals to revise existing extensions to regular installment agreements and direct debit installment agreements.
• Individuals to revise existing regular installment agreements to a payroll deduction installment agreement or a direct debit installment agreement.
• Practitioners with valid authorizations to use the signature date found on their approved Form 2848, Power of Attorney and Declaration of Representative, or the caller ID as an alternate way to authenticate when requesting agreements for clients.