President Obama yesterday directed executive departments and agencies to expand their use of recovery audits to reduce waste and fraud in Medicare, Medicaid and other government programs. Recovery audits, currently used in Medicare, offer private auditors financial incentives to root out improper payments. Obama said the executive director of the Office of Management and Budget will develop guidance within 90 days on the actions executive departments and agencies must take in response to the presidential memorandum. The administration anticipates saving at least $2 billion from expanded use of the audits over the next three years. The president also announced his support for the Improper Payments Elimination and Recovery Act, legislation that would expand the government’s ability to fund the audits with recaptured payments.