'Record-breaking backlog' leads to $1.1 billion in improper Social Security payments, report finds

Original Article:

Source: Link

zimmytws | iStock | Getty Images The Social Security Administration faces a "record-breaking backlog" of open cases, leading to approximately $1.1 billion in projected improper payments to beneficiaries, according to a new report from the Social Security Administration Office of the Inspector General. The SSA OIG, which provides independent oversight of the agency's programs and operations, found the agency's backlog of so-called pending actions climbed to an all-time high of 5.2 million as of February. Of those that were improper payment cases, the average processing time was 698 days, according to a sample evaluated by SSA OIG. Improper payment includes overpayments, where beneficiaries are paid more than they should be, as well as underpayments, where payments to beneficiaries may be erroneously reduced. watch now If the pending cases had been resolved immediately, about 528,000 beneficiaries would have been improperly paid about $534 million, the report estimated. After 12 months, that improper payment amount for those beneficiaries rose to about $756 million. At the time of the SSA OIG's review, many of the cases had been outstanding for more than 12 months, bringing the improper payment amount to the reported $1.1 billion figure. Some overpayments may be preventable Earlier this year, the Social Security Administration put in place new policies to make it easier for beneficiaries to resolve overpayment issues with the agency, loosening previous rules that called for clawing back 100% of the money beneficiaries received. However, the agency's workflow still makes it vulnerable to inaccurate payments, which is worsened by processing delays. The SSA OIG report's findings are based on pending actions at the SSA's processing centers, which handle appeal decisions, collect debt, correct records and process benefit decisions. "The longer it takes SSA to process [processing center] pending actions, the longer beneficiaries wait for underpayments due or they receive larger overpayments to pay back," the SSA OIG report said. Some incidents of overpayments may be preventable in cases where beneficiaries do not provide necessary information to the Social Security Administration in a timely fashion, said Paul Van de Water, senior fellow at the Center on Budget and Policy Priorities. However, other cases are just due to slow processing times by the agency, he said. "Whatever the source of the problem, getting the claims and adjustments processed more quickly would be advantageous," Van de Water said. Improvements depend on 'sustained adequate funding'