Biden outlines Medicaid cost-cutting plan

WASHINGTON, Sept. 14 (UPI) -- U.S. Vice President Joe Biden announced Wednesday a plan he said would eliminate $2.1 billion in Medicaid waste and fraud in the next five years.

The "Medicaid Recovery Audit Contractor Program" will return to the states about $900 million of the savings in the program for low-income and disabled Americans, Biden said at the White House.

"We can make our government more efficient and responsible to the American people," Biden said. "If we're going to spur jobs and economic growth and restore long-term fiscal solvency, we need to make sure hard-earned tax dollars don't go to waste."

He said the new program is based on a successful effort to reduce overpayments in Medicare, which he said has recovered $670 million so far this year.

"Today we are building on an already successful program that targets improper payments in our health care programs and recovers those dollars, making Medicare and Medicaid more reliable and responsible," said Health and Human Services Secretary Kathleen Sebelius.

"We simply can't afford to see even one penny of our healthcare dollars wasted."

Biden also unveiled Labor Department efforts to reduce improper unemployment payments and make states more accountable for cracking down on waste, fraud and abuse in the program.

"States bear the responsibility of operating an efficient and effective benefits program, but as partners the federal government must be able to hold them accountable for doing so," Labor Secretary Hilda Solis said. "These new measures demonstrate our commitment to working closely with states to ensure the integrity of the system, turn around under-performing programs and save taxpayer dollars."

The White House said Biden also has asked Cabinet members to report on "wasteful and inefficient" spending to cut costs.