Dive Brief:
- A recent study by the Government Accountability Office (GAO) found Social Security's Disability Insurance program overpaid $11 billion since 2006 to people who returned to work and made more than their allowed income limit.
- Additional problems, the study reported, include weak oversight by employees who don't properly monitor workers who earn money but still receive benefits in addition to a lack of basic checks and balances, like providing workers with a receipt when they report an income change.
- Overpayments up to $1,000 are automatically waived. The average work-related overpayment between 2005 and 2014 was $12,000, as reported by the Washington Post.
Dive Insight:
The Social Security Administration also failed to collect $1.4 billion in excess payments because they were discovered to be the agency's fault, not the workers, the report found.
Disability Insurance was going to have to cut benefits next year until Congress ensured the program's solvency through 2024 via the new budget deal. The average disability benefit is $1,165 per month, or $13,980 a year.
The study recommended changes to help the program reduce overpayments, such as automated reporting of income and better oversight of waivers and people who earn money while receiving benefits. The Washington Post also noted the system to report income has no automated phone system or smartphone app, making it susceptible to errors and fraud. "Despite the importance of avoiding overpayments, SSA's multi-faceted processes for handling work reports contain internal control weaknesses and other vulnerabilities that may result in [the agency] not taking prompt action to adjust benefits and avoid overpayments," the study stated.
In response to the study, Social Security officials said via e-mail although the overpayments "look substantial expressed as real dollars, they represent a very small percentage of the $80 billion in payments we make each year." However, they did add, "[W]e are committed to preventing overpayments and we are continually refining our processes and seeking new and innovative ways to leverage data," as reported in the Washington Post.