SSA recovered $4.9 billion in overpayments under the two programs during fiscal 2023 but had a $23 billion uncollected overpayment balance at the end of that year. Image: DCStockPhotography/Shutterstock.com
By: FEDweek StaffAddressing an issue of continued interest on Capitol Hill and from OMB, improper payments, the Congressional Research Service has said that in the case of Social Security, both the SSA and beneficiaries contribute.
The report said that in the Old-Age, Survivors, and Disability Insurance program, commonly known as Social Security, the SSA paid an estimated $6.5 billion in overpayments in fiscal 2022, while in the Supplemental Security Income (SSI) program it paid an estimated $4.6 billion in overpayments. That is less than 1 percent of outlays in the former and 8 percent in the latter, it said.
SSA recovered $4.9 billion in overpayments under the two programs during fiscal 2023 but had a $23 billion uncollected overpayment balance at the end of that year, it added.
It noted that in both programs, eligibility and benefit amounts “are dependent on a number of factors, which may include age, marital status, household composition, dependency for support, employment and earnings, financial resources, and income or benefits from other sources.”
“Beneficiaries might not report changes in their income, employment, resources, family, or living arrangements accurately or promptly to the agency. The agency might not process the information promptly, or it may have errors in data entry, the application of policy, or administrative process resulting in overpayments,” it said.
Another complication, it said, is that eligibility and benefit determinations are made on a monthly basis, which can “increase the likelihood of incurring an overpayment before a report can be correctly processed. Similarly, monthly overpayments may accrue before quarterly or annual data could detect a missed report or reporting error.”
Further, some determinations “require manual employee actions” and are dependent on the beneficiaries’ earnings—which they might not report correctly out of failure to understand the rules, and which the agency “might not correctly process in a timely manner.” It said additional errors on both ends are possible due to other complex rules on matters such as marital status, dependency and, in the case of SSI, financial assets and in-kind support.
The report also noted efforts by the SSA to improve reporting and its own processing; unlike the GAO and agency inspectors general, the CRS does not make recommendations in its reports.
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