A bill to establish an Office of Inspector General within the Department of Health, Education, and Welfare.

Establishes within the Department of Health, Education, and Welfare the Office of Inspector General comprised of an Inspector General and a Deputy Inspector General appointed by the President by and with the advice and consent of the Senate. Provides that the Inspector General and Deputy shall be removed from office only by impeachment or by the President but only for malfeasance, criminal conduct, incompetence, gross neglect of duty, or disability. States that they shall be subject only to the general supervision of the Secretary of Health, Education, and Welfare.

Sets forth the duties of the Office which include promoting economy and efficiency and preventing and detecting fraud and abuse of the programs and operations of the Department. Requires the Office to report to the Secretary and Congress with respect to its findings and activities quarterly or whenever the Office becomes aware of particularly serious or flagrant problems or abuse.

Transfers to the Office the functions of the HEW Audit Agency and the Department's Office of Investigation.