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FY 2007 Budget in Brief

Office of Inspector General

On this page:
Office of Inspector General
Bioterrorism
Grants Oversight
Child Support Enforcement Program
Drug and Device Safety and Safeguards
Health Care Fraud and Abuse
Medicare Prescription Drug, Improvement, and Modernization Act

Office Of Inspector General


Office Of Inspector General
(dollars in millions)


2004


2005


2006

2005
+/- 2006

Program Level 1.................................................................

$218

$248

$250

+$2

 

 

 

 

 

FTE ..................................................................................

1,452

1,623

1,623

0

1

The FY 2007 level assumes $160 million for Medicare and Medicaid related fraud, waste, and abuse activities, the maximum allowed under the Health Care Fraud and Abuse Control Program (HCFAC) and budget authority of $44 million. Also included in FY 2007 is $11.3 million under the discretionary caps proposal, $25 million in FY 2006 and FY 2007 for the Medicaid Integrity Program in the Reconciliation Bill, and $7 million in FY 2005 and an estimated $10 million in FY 2006 and FY 2007 for funds the OIG is authorized to receive for reimbursement of the costs of conducting audits, investigations and compliance monitoring.

Under the authority of the Inspector General Act, the Office of Inspector General (OIG) improves HHS programs and operations and protects them against fraud, waste, and abuse. By conducting independent and objective audits, evaluations, and investigations, OIG provides timely, useful, and reliable information and advice to Department officials, the Administration, the Congress, and the public.

For FY 2007, the Office of Inspector General (OIG) requests a discretionary appropriation of $44 million. OIG will also receive between $150 and $160 million in FY 2007 from the Health Care Fraud and Abuse Control (HCFAC) Program for Medicare and Medicaid related fraud, waste, and abuse activities. In addition to this, the FY 2007 budget includes HCFAC discretionary funding. As part of a government-wide approach to funding program integrity activities, the budget proposes a discretionary cap increase of $119.6 million in FY 2007. OIG would receive $11.3 million in funding under this proposed initiative in FY 2007.

Over the FY 2006 - FY 2007 period, OIG will use its discretionary funding to continue its work across the non-Medicare and non-Medicaid areas of HHS, which are public health, children and families, aging, and department-wide activities. The funding level of OIG for FY 2007 allows OIG to continue its efforts in:

  • Granting oversight and reviews that cover internal controls, accounting controls, performance measurements, and program evaluations, and assisting the Department to identify sources of improper payments;
  • Nationwide involvement with the 10 Project Save Our Children (PSOC) Task Forces that identify, investigate, and prosecute individuals who willfully avoid the payment of their child support obligations; and
  • Reviews of drug and device safety and safeguards over controlled substances.

In addition to this, OIG will continue its HCFAC activities to identify and prosecute health care fraud; prevent future fraud, waste, or abuse; protect HHS program beneficiaries; and ensure the solvency of the Medicare Trust Fund; as well as play an active role in the implementation of the MMA.

Grants Oversight

OIG plans to review Department grant programs to determine whether they are appropriately monitored and managed throughout the grant life cycle. OIG will assess mechanisms in place to ensure that proper procedures are used to award grants, fund them, account for expenditures, and verify that they are used only for authorized purposes. The work of OIG will include review of performance measures used to determine the nature and value of the product of the grants, as well as the methods used to evaluate the individual grants and grant programs as a whole. The reviews of OIG will cover internal controls, accounting controls, performance measurements, and program evaluation.

OIG anticipates conducting grant oversight activities in FY 2006 FY 2007 that touch almost every Operating Division within HHS and include such diverse issues as patient safety, the Community Health Centers, Head Start Enrollment of Disabled Children, HIV/AIDS, and fraud awareness.

Child Support Enforcement Program

OIG will continue its coverage of all 50 States and the District of Columbia by its multi-agency task forces (PSOC Task Forces) that identify, investigate, and prosecute individuals who willfully avoid payment of their child support obligations under the Child Support Recovery Act. These task forces bring together State and local law enforcement and prosecutors, United States Attorneys' Offices, the OIG, U.S. Marshals Service personnel, State and county child support personnel, and all other interested parties.

Drug and Device Safety and Safeguards

The Public Health Service programs are the country's first line of defense against acute and chronic diseases and in the Administration's efforts to promote and enhance the continued good health of the American people. OIG plans reviews in the areas of select agents, compliance inspections of drug manufacturers, adverse event reporting for medical devices, and enforcement of food facility registration requirements.

Health Care Fraud and Abuse

Through the Health Insurance Portability and Accountability Act (HIPAA), OIG receives mandatory funding for its activities that focus on fraud, waste, abuse, and efficiency improvements in the Medicare and Medicaid programs. The Act provides for minimum and maximum amounts of funding that are decided each year by the Secretary of HHS and the Attorney General. Starting in FY 2003, and each year thereafter, the maximum amount available to OIG for its HCFAC Program is capped at $160 million. In addition to this, the FY 2007 discretionary budget includes HCFAC funding as part of a government-wide approach to funding program integrity activities. OIG would receive an additional $11.3 million in FY 2007. OIG works with the Centers for Medicare & Medicaid Services (CMS), other HHS agencies, and the Department of Justice to ensure that funds due to the Medicare Trust Fund or CMS are recovered through audits and investigations, and provides recommendations for statutory, regulatory, and program changes that could strengthen program integrity.

FY 2007 Budget in Brief Home

Last revised: February 20, 2006

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