Social Security Payments Mismanaged, $1.1 Billion Overpaid

A recent report from the Social Security Administration (SSA) Office of the Inspector General highlights a "record-breaking backlog" of pending cases, resulting in an estimated $1.1 billion in improper beneficiary payments. These improper payments encompass both overpayments, where beneficiaries receive more than entitled, and underpayments, where they receive less. Many of these cases have remained unresolved for over a year, exacerbating the financial strain on beneficiaries. Experts are calling for increased funding to address what they describe as a "customer service crisis" within the SSA. Paul Van de Water, a senior fellow at the Center on Budget and Policy Priorities, noted that while some overpayments could be avoided with timely information from beneficiaries, many issues stem from the agency's slow processing times. The SSA has met its performance goals for pending actions in four out of six fiscal years from 2018 to 2023, but unexpected staff reductions and increased workloads have hindered its performance in the remaining years. Dustin Brown, the acting chief of staff at the SSA, acknowledged the challenges posed by the lowest staffing levels in 25 years, as the number of beneficiaries continues to rise. In response to the report, the SSA has agreed to implement recommendations for developing a workload and staffing plan, as well as establishing performance measures and time frame targets for processing pending actions. Without adequate budgetary support, experts warn that the ongoing crisis could worsen, leading to longer processing delays and continued inaccuracies in payments. Van de Water emphasized the need for sufficient funding to alleviate these issues, stating that resolving the backlog will be challenging under current financial constraints.