SSA Faces $72 Billion in Improper Payments Over Seven Years

The Social Security Administration (SSA) has reported nearly $72 billion in improper payments over the past seven years, with approximately one-third of this amount still unrecouped. As of the end of fiscal year 2023, the agency is grappling with a staggering $23 billion in uncollected overpayments. The SSA’s Office of the Inspector General (OIG) has labeled improper payments a “longstanding challenge,” prompting the agency to explore new strategies to mitigate these errors. To address the issue, the SSA is developing an information exchange to access wage data from payroll processors, aiming to reduce payment inaccuracies. Additionally, the agency has initiated a comprehensive review of its overpayment procedures and systems to identify potential improvements. The OIG emphasizes the importance of preventing improper payments before they occur, as these errors not only burden SSA employees but also negatively impact beneficiaries who receive incorrect payments. Michelle L. Anderson, the acting inspector general, highlighted the ongoing challenges posed by improper payments, stressing the need for better data access, increased automation, and potential policy changes. Beneficiaries have reported significant financial hardship due to the agency's attempts to reclaim overpaid amounts, often leading to abrupt halts or reductions in their payments. In response to these concerns, the SSA has implemented new policies to ease the repayment process for overpaid beneficiaries. The agency has limited the deduction of overpayments from monthly benefits to 10 percent and extended the repayment period from 36 to 48 months, aiming to provide relief to those unable to repay immediately.