Center on Budget and Policy Priorities February 21, 2025
With Congress expected to consider large funding cuts to Medicaid and President Trump stating recently that he plans to “love and cherish” Medicaid “unless we can find some abuse or waste,” it’s important to understand that critics of Medicaid often incorrectly label paperwork errors measured by the government as waste, fraud, and abuse.
Each year, the Centers for Medicare & Medicaid Services (CMS) releases estimated Payment Error Rate Measure (PERM) rates on improper payments in Medicaid. Technically, improper payments are those that do not meet statutory, regulatory, or administrative requirements which mostly result from paperwork issues. The PERM has several components that measure different elements of the program. The overall 2024 improper payment rate was 5.09 percent, down from 8.58...
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