Social Security makes $8B in improper payments
WASHINGTON — The Social Security Administration made $6.5 billion in overpayments to people not entitled to receive them in 2009, including $4 billion under a supplemental income program for the very poor, a government investigator said Tuesday.
In all, about 10 percent of the payments made under the agency's Supplemental Security Income program were improper, said Patrick P. O'Carroll Jr., the Social Security inspector general.
Error rates were much smaller for retirement, survivor and disability benefits, which make up the overwhelming majority of Social Security payments, O'Carroll told a congressional panel.
"By any standard, the scope of these problems is considerable," said Rep. Charles Boustany, R-La., chairman of the House Ways and Means Oversight subcommittee. "Regardless of whether a payment occurs because of simple error or outright fraud, improper payments harm Social Security programs in the long term, jeopardizing benefits for those who may need them in the future. They also cost taxpayers billions of dollars each year."
With lawmakers working to reduce soaring budget deficits, President Barack Obama has directed agencies to reduce improper payments. Boustany's panel held a hearing on Social Security's improper payments Tuesday. O'Carroll said the agency is working to improve accuracy, but more must be done.
Throughout the federal government, improper payments totaled $125 billion last year, up from $110 billion in 2009, O'Carroll said. In 2009, only two other agencies — the Departments of Health and Human Services, and Labor — had more improper payments than Social Security, he said.
Social Security has improved the accuracy of its payments in each of the past three years, and is working on more improvements, said Carolyn W. Colvin, the agency's deputy commissioner.
"We pay nearly 60 million Americans who deserve to receive their benefits timely and accurately, and we deliver on that responsibility in nearly all cases," Colvin said in prepared testimony for Tuesday's hearing. "We are committed to minimizing improper payments and protecting program dollars from waste, fraud, and abuse. In keeping with President Obama's vision, we are also open and transparent about our improper payment situation and our efforts to improve that situation."
About 99.5 percent of all retirement and disability payments were accurate in 2009, O'Carroll said. In all, the agency made $660 billion in retirement, survivors and disability payments in 2009, including an estimated $2.5 billion in overpayments and $600 million in underpayments, O'Carroll said.
"While we are justifiably proud of our consistently high accuracy rate for (retirement, survivors and disability) payments, we recognize our responsibility to maintain and improve our performance," Colvin said.
She said policing the Supplemental Security Income program is more difficult because benefits can change each month based on changes in income and living arrangements. To qualify for the program, beneficiaries must be 65 or older, blind or disabled, and have very limited resources.
Couples can own a maximum of $3,000 in assets, including cash, stock, second vehicles and personal property. Homes and primary vehicles are excluded.
In 2009, the Supplemental Security Income program made payments totaling $48.3 billion, including an estimated $4 billion in overpayments and $800 million in underpayments.
O'Carroll said most of the overpayments went to people who didn't report all the property they owned.
1. Doctors
2. Big Pharma
3. Nursing Home operators
4. Health Insurance providers
These industries have some of the most powerful lobbyists inside
The Beltway, and they routinely are given fines for violating the law. No reprecussions for CEO's or upper management. And they continue to violate these statutes because the cost-benefit analysis says the benefits (profits) derived from fraud far outweigh the penalties ($$), and there are no personal consequences (imprisonment, etc).
These industries give an inordinate amount of their campaign contributions to the Republican Party. Paul Ryan wants to privatize Medicare and Social Security, all while receiving Millions of dollars from these groups in order to get re-elected and do their bidding. Talk about fraud and corruption.
Read between the lines . . .
I have seen some clients of mine went back to their country and never report to Social Security Administration, nor to our agency. SSI has direct deposit to the recipient's account; our agency has no control of it. I denied the Food Stamp and Medicaid when I learned my client was not even in this country. Sometime make me wonder that how the son or daughter of those SSI recipients can afford to buy million dollars' home and their parents apply for Food Stamp. Did the SSI recipients hide their assets under their children's name?
One of my client own some property and assets were never report to us until I questioned the lease she signed for new apartment which the rent cost was three times of her SSI income. I want to know how she can qualify for that kind of lease. My client claimed that she needs a bigger apartment because she has applied for several family members to come to this country. She shows me the sponsor application she submitted to the Immigration. She has more assets than majority of American, yet she receives SSI. Apparently, the SSA and Immigration do not share information.
I have seen some client of mine went back to their country and never report to Social Security Administration, nor to our gency. SSI money has direct deposit to the recipient's account; our agency has no control of it. I denied the Food Stamp and Medicaid when I learned one of my client was not even in this country. Sometime make me wonder that how the son or daughter of those SSI recipients can afford to buy million dollar's home;and the parents apply for Food Stamp. Did the SSI recipients hide their assets under their children's name?
One of my client own some property and assets were never report to us. The lease she signed for new apartment which the rent cost was three times of her SSI income. I questioned how she can qualify for that kind of lease. My client claimed that she needs a bigger apartment because she has applied for several family members to come to this country. She shows me the sponsor application she submitted to the Immigration that is how I learn she has more assets than the majority of American.
OOPES>>>>NEVER MIND!!!! ;-(
No wonder this country is in such bad shape!!!
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That is not overpayment. That is fraud.
Cabinet officials will be expected to report their progress cutting waste to Vice President Joe Biden, who will, as he did with the Recovery Act, wear his sheriff's badge as the person in charge of oversight.
This is exactly what happened in Europe with tax credits, because of the sliding scale payouts it became nightmare to work out an individuals benefit month to month depending on income.
someone(s) paying it out to who they wanted to bay it out to. Like who
they want to receive their vote from.
I think all in Washington running this government needs to be brought to
justice, and who ever is responsible need to go to jail for all the
missing money.
Bush and ocarter II most likely paid it out to the ILLEGAL-ALIENS for votes.