OPM Flags $106.7 Million in Potential FEHBP Improper Payments

The U.S. Office of Personnel Management (OPM) identified approximately 50,000 deceased individuals who remained listed in the Federal Employees Health Benefits Program (FEHBP) after matching the U.S. Department of the Treasury’s August 2026 Death Record Confidence Scoring Tool (DRCST) against OPM’s FEHB enrollment records. The review found $96.3 million in improper payments made after dates of death. That total comprises $70.6 million in government FEHB premium contributions and $25.7 million in retirement payments. The findings put enrollment data quality and payment integrity in focus across the program’s administrative ecosystem.

OPM separately estimates $10.4 million in carrier costs associated with more than 20,000 individuals who remained on carrier rolls even though no government premium was being paid for them. According to OPM, carriers charge FEHB funds monthly administrative and per-member costs. The distinction between payments already identified and estimated carrier costs is important for contractors and program stakeholders: the review quantified improper payments and also identified continuing administrative expenses tied to records that may not have been removed from carrier systems.

The next stated step is a review of claims that may have been paid after an enrollee’s date of death. OPM said it will examine those claims “in the coming weeks,” extending the inquiry beyond enrollment and payment records into claims activity. For FEHB carriers, administrators, and organizations supporting benefits operations, this signals potential follow-up scrutiny of how eligibility and death-record information is reconciled, how flagged accounts are handled, and whether claims controls prevent payment on ineligible records. The announcement does not identify a new procurement, solicitation, or contract award; its immediate GovCon relevance is the possibility of heightened oversight and demand for demonstrable payment-integrity capabilities.

OPM Associate Director of Healthcare and Insurance Matthew Kiley said, “Every outdated enrollment record can carry a cost,” adding that the review is helping the agency find records, identify payments requiring action, and reduce unnecessary FEHB costs. OPM Director Scott Kupor described the findings as “a drop in the bucket of what we expect to find as we double down on our integrity program.” Separately, Scott Brady, Executive Director of the White House Task Force to Eliminate Fraud, framed the findings as part of an effort to address fraud, waste, and improper payments. The agency statements point to sustained attention to program integrity, although they do not specify future contract requirements or procurement timelines.

• OPM matched Treasury’s August 2026 DRCST against FEHB enrollment records and identified approximately 50,000 deceased individuals still listed in FEHBP.
• The review identified $96.3 million in payments made after dates of death: $70.6 million in government FEHB premium contributions and $25.7 million in retirement payments.
• OPM estimates $10.4 million in carrier costs associated with more than 20,000 individuals remaining on carrier rolls without government premium payments.
• OPM says carriers charge FEHB funds monthly administrative and per-member costs, making accurate and timely removal of ineligible records a payment-integrity concern.
• OPM plans to examine claims that may have been paid after dates of death “in the coming weeks”; the announcement does not report the results of that claims review.
• FEHB carriers and administrators should assess enrollment reconciliation, death-record matching, account-removal processes, and controls for claims associated with deceased enrollees.
• Contractors supporting benefits administration may find it useful to document how their systems detect and resolve questionable records, preserve audit trails, and escalate potential improper payments.
• The announcement describes an oversight and integrity review, not a solicitation or contract award; no procurement timeline, funding opportunity, or new requirement is announced.