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The U.S. Department of Health and Human Services (HHS) estimated that in 2013 it improperly spent about $65 billion in taxpayer funds through waste, errors, and fraud, a figure that was primarily fueled by an estimated $60 billion in overpayments to Medicare and Medicaid.
According to the HHS FY 2013 financial ReporT released in mid-December, last year HHS improperly spent a total of $65.3 billion under all its programs, an increase from the $64.8 billion misspent in 2012.
Erroneous payments by Medicare increased by almost 12 percent, from around $44.3 billion in 2012 to almost $49.9 billion in 2013. That means that last year, nearly $1 out of every $10 spent on Medicare beneficiaries was doled out by mistake.