U.S. Department of Health and Human Services Met Many Requirements of the Improper Payments Information Act of 2002 but Did Not Fully Comply for Fiscal Year 2018

OIG must review HHS compliance with the Improper Payments Information Act of 2002 (IPIA; P.L. No. 107-300) as amended by the Improper Payments Elimination and Recovery Act of 2010 (P.L. No. 111-204) and the Improper Payments Elimination and Recovery Improvement Act of 2012 (P.L. No. 112-248). Ernst & Young, LLP (EY), under its contract with HHS OIG, audited the fiscal year (FY) 2018 HHS improper payment information reported in the Agency Financial Report (AFR) to determine compliance with the IPIA and related guidance from the Office of Management and Budget (OMB).

EY determined that HHS met many requirements but did not fully comply with the IPIA. Among the items required for compliance with the IPIA, EY determined that HHS published the AFR for FY 2018, conducted risk assessments for 22 programs deemed not susceptible to improper payments and determined the programs were not at risk for them, and published corrective action plans for seven of the eight programs OMB deemed susceptible to significant improper payments. EY also determined that HHS published and met annual reduction targets for three of the seven programs for which it reported reduction targets in the FY 2017 AFR and reported an improper payment rate of less than 10 percent for seven of the eight programs OMB deemed susceptible to significant improper payments.

EY concluded that HHS did not comply with several IPIA requirements. EY found that HHS did not report an improper payment estimate for the Temporary Assistance for Needy Families program. EY also determined that HHS did not meet improper-payment-rate reduction targets for Medicaid, the Children's Health Insurance Program, and the Foster Care program and did not conduct recovery audits for the Medicare Advantage program.