CMS has released its 2009 Medicare and Medicaid improper payment rates, reflecting a more complete accounting methodology and Medicare claims review process which has resulted in higher overall reported Medicare improper payment rates. Specifically, CMS is reporting a 2009 Medicare fee-for-service error rate of 7.8%, compared to 3.6% in 2008. The baseline composite Medicare Advantage error rate, based on payment year 2007, is 15.4 percent. The composite Medicaid error rate is 8.7%, compared to 10.5% the prior year. Separately, on November 23, President Obama issued an Executive Order on “Reducing Improper Payments and Eliminating Waste in Federal Programs.” The order directs various agencies and departments to intensify efforts to eliminate payment error, waste, fraud, and abuse in the major federal programs through a series of steps, including greater transparency in reporting significant payment errors; a focus on identifying and eliminating the highest improper payments; accountability for reducing improper payments among executive branch agencies and officials; and coordinated federal, state, and local government action in identifying and eliminating improper payments.