The Social Security Administration (SSA) has been reprimanded by its oversight division, the Office of the Inspector General (OIG), for failing to implement recommendations aimed at reducing improper payments.
These payments include both underpayments, where beneficiaries receive less than they are entitled to, and overpayments, where beneficiaries receive more than they should.
Social Security Administration Criticized by Auditors for Failing to Address Improper Payments
According to a new report, the SSA is estimated to have made nearly $72 billion in improper payments between fiscal years 2015 and 2022, with most of these being overpayments. By the end of the 2023 fiscal year, the SSA had an uncollected overpayment balance of $23 billion.
The OIG report emphasized the need for the SSA to act as a responsible steward of the funds it manages by minimizing the risk of improper payments and effectively recovering overpayments.
The report also highlighted the SSA’s failure to implement several recommendations related to improving its processes for handling overpayments and underpayments. Although the SSA initially planned to address these issues with a “comprehensive Debt Management Product,” this initiative was halted in 2024 due to insufficient funding.
Assistant Inspector General for Audit and Acting Inspector General Michelle L. Anderson stated that improper payments have long been a challenge for the SSA, and more needs to be done to address the issue.
She suggested that better access to data, increased automation, system modernization, and potential policy or legislative changes could help mitigate this ongoing problem.
Another recent OIG report found that the SSA had made over $1.1 billion in incorrect payments to a sample of 528,000 benefit recipients as of February 2024, with the average processing time for correcting these payments being 698 days.
In response to concerns about the impact of overpayments on beneficiaries, the SSA announced it would reduce the amount it collects from overpaid recipients from 100 percent of their monthly benefit to 10 percent.
SSA Commissioner Martin O’Malley emphasized the importance of fair and equitable overpayment policies, stating that it is unacceptable for individuals to face severe financial hardship, such as homelessness, due to the SSA withholding their entire benefit to recover an overpayment.
Conclusion
The SSA has faced significant criticism from its oversight division for failing to address the long-standing issue of improper payments. While the agency has taken some steps to alleviate the burden on beneficiaries, more comprehensive actions are needed to prevent and recover improper payments effectively.
Q1. What has the SSA been criticized for by its oversight division?
A. The SSA has been criticized for failing to implement recommendations aimed at reducing improper payments, including both underpayments and overpayments.
Q2. How much did the SSA overpay between 2015 and 2022?
A. The SSA is estimated to have made nearly $72 billion in improper payments, the majority of which were overpayments.
Q3. What is the uncollected overpayment balance as of FY 2023?
A. As of FY 2023, the SSA had an uncollected overpayment balance of $23 billion.
Q4. What action did the SSA plan to take to address improper payments, and why was it halted?
A. The SSA planned to implement a “comprehensive Debt Management Product” to address improper payments, but this initiative was halted in 2024 due to a lack of funding.
Q5. How is the SSA easing the burden of overpayments on beneficiaries?
A. The SSA announced that it would collect only 10 percent of a person’s monthly Social Security benefit to recover an overpayment, instead of 100 percent.
