Expanded Audit Program to Go After Government Waste, Fraud

The government is increasing the use of audits that go after waste and fraud, particularly within Medicare, Medicaid, and other state-run health care programs, the White House announced Wednesday.

President Obama signed a memorandum ordering federal agencies to expand the "payment recapture audit" program, which compensates private sector auditors who uncover fraud or waste, The Los Angeles Times reported. The auditors get to keep a portion of any improper payments they find.

The technique will be used to examine a variety of government programs but will focus on Medicare and Medicaid.

Pilot payment recapture audits in California, New York, and Texas recovered $900 million in taxpayer money from 2005 to 2008, the White House said.

The White House estimates that the audits could return at least $2 billion to the government over the next three years, according to CBS News.