NewsOverpayments And Future Benefit Cuts Loom

Overpayments And Future Benefit Cuts Loom

While improper payments represent less than 1% of the total benefits paid out during that period, the $23 billion in uncollected overpayments is a major concern for the SSA.

Social Security, already under significant financial pressure, is dealing with a staggering $23 billion in unrecovered overpayments. 

While improper payments represent less than 1% of the total benefits paid out during that period, the $23 billion in uncollected overpayments is a major concern for the SSA, according to its Office of the Inspector General (OIG). These overpayments—often the result of errors or beneficiary misreporting—highlight the agency’s struggle to maintain financial accuracy in its payments.

One of the primary reasons for improper payments, according to OIG audits, is the SSA’s reliance on beneficiaries to self-report changes in their circumstances, such as income or living arrangements, which affect payment amounts. A lack of sufficient controls in the SSA’s automated and manual processes further complicates the issue. The OIG has urged the SSA to obtain more accurate data from external sources, such as other federal agencies and financial institutions, to better assess eligibility and payment amounts.

“Improper payments have been a longstanding challenge for SSA,” said Michelle L. Anderson, Assistant Inspector General for Audit and Acting Inspector General. “While the Agency has taken actions to address this challenge, it needs to do more.”

With Social Security’s financial future hanging in the balance, addressing improper payments is crucial for the program’s solvency. Preventing and recovering overpayments won’t fully resolve the crisis, but it is a critical step in ensuring that social security can continue to provide for millions of Americans who rely on it for their livelihood.

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Source: Black Enterprise

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