Following a whistleblower report, the United States Office of Special Counsel (OSC) accepted the Department of Health and Human Services (HHS) investigative findings totaling $30 million in wasteful spending by the Office of Medicare Hearings and Appeals (OMHA).
Specifically, the whistleblower reported unnecessary personnel and overstaffing, as OMHA was continually employing 150 employees who were originally hired in 2019 to meet a temporary surge in appeals cases that occurred between 2012 and 2015.
OMHA expanded its workforce to reduce delays of 3 to 4 years and meet the court-ordered 90-day processing deadline. Once the agency’s case levels were no longer backlogged, the expanded workforce exceeded operational needs, leaving 40 of the agency’s 120 teams without sufficient work. As of August 2025, following the whistleblower’s disclosure, OMHA reduced its workforce by 185 employees.
In a press release, OSC stated the waste has been “addressed and corrected, resulting in meaningful improvement to the agency’s stewardship of taxpayer dollars and in the whistleblower’s expressed satisfaction with the agency’s progress.”
The Whistleblower Protection Act protects federal employees from retaliation for reporting misconduct to OSC, the Merit Systems Protection Board, or Inspectors General. Federal whistleblowers may also make confidential reports without notifying their employer.
OSC Senior Counsel Charles Baldis said, “OSC thanks the whistleblower for bringing forward the information that revealed nearly $30 million in waste of taxpayer funds. This disclosure brought needed attention to OMHA’s serious overstaffing challenges. OSC also appreciates HHS’s decisive and substantive actions to prevent the waste of taxpayer dollars.”
Baldis concluded: “A major part of OSC’s mission is to help prevent waste, fraud, and abuse in the federal government. We’re always pleased when we can contribute to a successful resolution like this one.”
