Federal agency struggles with reform, risking major fraud

 August 17, 2025, NEWS

The U.S. Office of Personnel Management (OPM) is dropping the ball on critical reforms, leaving taxpayers exposed to a gaping hole of fraud and waste.

According to Just The News, the crux of the mess is OPM’s failure to tackle most of the Government Accountability Office’s (GAO) recommendations, creating a “significant risk” of improper payments, especially in the Federal Employees Health Benefits (FEHB) program, while stumbling through IT modernization and software management woes.

Let’s start with the FEHB program, the largest employer-sponsored healthcare setup in the nation, managed by OPM. It’s meant to be a lifeline for federal workers, but the GAO has flagged a glaring problem: ineligible family members are siphoning off benefits. This isn’t just a paperwork glitch; it’s a top challenge, as noted by OPM’s own Inspector General.

FEHB Fraud: A Billion-Dollar Blind Spot

The GAO didn’t mince words, pointing out that OPM’s current plans fail to curb fraud from those already enrolled improperly. “Strategies do not address the significant risk,” they warned. Well, no kidding—ignoring a leak doesn’t fix the pipe, and taxpayers are left footing the bill for this oversight.

OPM has tossed out some Band-Aids, like new guidance for validating enrollments. But as the GAO rightly noted, these half-measures don’t touch the root issue of existing fraud. It’s like locking the front door while the back window’s wide open.

Here’s a kicker: the GAO estimates that a proper monitoring system to boot out ineligible recipients could save a whopping $1 billion. They’ve urged OPM to set up such a mechanism, and legislation passed on July 4, 2025, even mandated it. Yet, OPM’s still dragging its feet—why the delay when so much is at stake?

IT Modernization: Stuck in the Stone Age

Now, let’s pivot to OPM’s handling of federal retirement programs, another beast they’ve been wrestling with for over two decades. The GAO reports that the process is riddled with IT management flaws, making it a bureaucratic nightmare. Modernizing this system shouldn’t be a sci-fi fantasy, but progress remains painfully slow.

Some steps forward have been taken, sure, but the GAO isn’t impressed, noting OPM hasn’t embraced key IT project management practices. Their critique stings: without clear scope and timelines, how can anyone gauge if retirement claims are even processed on time? This isn’t rocket science; it’s basic accountability.

Adding insult to injury, the GAO has called for a concrete plan to manage permanent electronic records, complete with deadlines. Their advice is clear: get it together, or risk losing critical data. But OPM’s response? Crickets on a firm timeline.

Software Licenses: Counting Costs, Not Cutting Them

Then there’s the software license debacle—OPM can’t even keep tabs on what it’s bought versus what it’s using. As of February 2025, they admitted to the GAO that efforts to reconcile this mess are “in progress.” That’s code for ‘we’re not there yet,’ and it’s a missed chance to slash unnecessary costs.

The GAO’s patience is wearing thin, urging OPM to regularly compare inventories to purchases. Their point is sharp: without this, how do you spot duplicative spending? In an era of bloated budgets, this kind of fiscal sloppiness is a slap in the face to hardworking Americans.

Stepping back, OPM’s track record on following through with GAO recommendations is abysmal, sitting at a measly 33% implementation rate as of November 2024. That’s not just a failing grade; it’s a flashing red warning sign. How can an agency entrusted with such vital programs afford to ignore two-thirds of expert advice?

Taxpayer Trust: Hanging by a Thread

This isn’t about pushing some radical agenda—it’s about demanding competence from those who handle our tax dollars. Fraud in FEHB, outdated retirement systems, and unchecked software costs aren’t partisan issues; they’re common-sense problems begging for solutions. Yet, OPM seems content to shuffle papers while risks mount.

Conservative values of fiscal responsibility and efficient government aren’t being served here, but neither are the federal employees relying on these programs. The GAO has laid out a roadmap—monitoring mechanisms, IT overhauls, and clear plans for records and licenses. OPM needs to stop dawdling and start delivering, or public trust will erode further.

Let’s end with a nudge: if OPM can’t protect taxpayer money from fraud and waste, what are they even doing? The stakes are high, with billions on the line and federal workers’ benefits at risk. It’s time for action, not excuses, before this “significant risk” becomes a full-blown disaster.

About Craig Barlow

Craig is a conservative observer of American political life. Their writing covers elections, governance, cultural conflict, and foreign affairs. The focus is on how decisions made in Washington and beyond shape the country in real terms.
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