DOGE subcommittee uncovers $2.7 trillion in improper Medicare, Medicaid payments

During a hearing on Wednesday, the Department of Government Efficiency (DOGE) subcommittee revealed that since 2003, the U.S. government has issued a staggering $2.7 trillion in improper Medicare and Medicaid payments, including to individuals overseas who were not eligible to receive them.

The subcommittee's findings shed light on the extent of fraud, waste, and mismanagement plaguing the nation's healthcare system.

The hearing, titled "The War on Waste: Stamping Out the Scourge of Improper Payments and Fraud," was led by Chairwoman Marjorie Taylor Greene. The goal of the subcommittee is to investigate how billions of taxpayer dollars have been squandered annually due to improper payments and fraud. Experts in the field provided step-by-step plans for improving the payment systems, closing loopholes, and implementing strategies to eliminate fraud.

At a subsequent White House press briefing, Karoline Leavitt, the youngest White House press secretary in history, addressed questions about the findings. A reporter asked for the administration’s perspective on the DOGE subcommittee’s discovery of the $2.7 trillion in improper payments.

Leavitt responded, "This is just another example of the fraud, waste, and abuse that DOGE is identifying daily." She also mentioned other instances of government fraud, including Social Security payments sent to deceased individuals and questionable contracts that do not account for the full amount of taxpayer money allocated. She emphasized that President Donald Trump has committed to addressing this issue, a promise that he has worked to fulfill with the support of figures like Elon Musk.

On February 11, President Trump and Elon Musk met in the Oval Office to discuss the progress of DOGE's efforts to cut down on government waste. Musk defended the task force’s actions, reiterating the need for major changes to curb excessive federal spending. Musk emphasized that Americans voted for such change, and that the Trump administration is delivering on its promises to reduce inefficiency and bureaucracy.

The DOGE subcommittee's efforts are part of the broader agenda to root out inefficiency in the federal government, especially in taxpayer-funded programs like Medicaid and Medicare. At the hearing, Dawn Royal, a certified welfare investigator, pointed to the role of career bureaucrats in minimizing the significance of fraud and abuse. Royal criticized officials who, for political reasons, downplay the scale of fraud, particularly in the Supplemental Nutrition Assistance Program (SNAP), where only a tiny fraction of the budget is spent on fraud prevention.

Rep. Michael Cloud (R-Texas) voiced support for the subcommittee's work and praised President Trump and Elon Musk for bringing a focused effort to tackle government waste. He asserted that the bipartisan fight against waste and corruption was critical for ensuring that taxpayer dollars are used effectively.

Several experts testified about measures to improve payment accuracy and reduce fraud. Haywood Talcove, CEO of LexisNexis Risk Solutions for Government, outlined a three-step plan to improve federal payment systems: implementing identity verification from the outset, eliminating self-certification, and continuous auditing to track payments.

Additionally, Royal suggested using modern technology to close loopholes and prevent fraud. She recommended creating a National Accuracy Clearinghouse (NAC) to stop duplicate participation in social welfare programs and allocating funds strictly for fraud prevention and enforcement.

The Biden Administration has been criticized for expanding welfare programs without implementing adequate oversight mechanisms, contributing to the escalating problem of improper payments. Stewart Whitson, Senior Director of Federal Affairs at the Foundation for Government Accountability, warned that the failure to address these issues could lead to even greater waste, with billions of dollars still buried under bureaucratic red tape.

Rep. William Timmons (R-S.C.) also criticized former President Joe Biden's handling of federal spending, accusing him of irresponsibly attempting to forgive billions of dollars in federal debt and exacerbate the country's fiscal crisis.

Launched in January by President Trump, the DOGE initiative, led by Musk, aims to slash federal spending by eliminating waste and bureaucracy. Since its creation, DOGE has saved over $1 billion by cutting unnecessary contracts. However, the task force has also faced legal challenges from Democratic lawmakers and consumer advocates, especially after it gained access to sensitive Treasury Department data.

Despite the controversy, supporters of DOGE view its actions as necessary for curbing the nation's mounting debt, which has surged to an all-time high of $36 trillion.