Social Security Faces Record-Breaking Backlog and $1.1 Billion in Improper Payments

SSA Grapples with Unresolved Cases as Overpayments

Social Security Faces Record-Breaking Backlog and $1.1 Billion in Improper Payments

Social Security Offices Struggle Amid Rising Backlog

The Social Security Administration (SSA) is currently grappling with a “record-breaking backlog” of cases, resulting in approximately $1.1 billion in improper payments. This alarming figure comes from a recent report by the SSA Office of the Inspector General (OIG).

The Office of the Inspector General, dedicated to enhancing the efficiency and effectiveness of the SSA’s programs, examined both incorrect payments and unresolved “pending actions” at processing centers from fiscal years 2018 to 2023. The report sheds light on the significant problems caused by these unresolved cases.

Social Security Administration  “record-breaking backlog”

The report reveals that the longer underpayments or overpayments remained unaddressed, the more errors compounded. On average, it took 698 days to process an improper payment within the sample studied by the OIG.

“Customer satisfaction has always been a critical concern for SSA. This report underscores the urgency for SSA to meet its pending actions performance goal to ensure beneficiaries receive their proper payments as promptly as possible,” stated Michelle Anderson, Assistant Inspector General for Audit, who is currently serving as the Acting Inspector General for SSA.

The findings highlight the pressing need for the SSA to address these systemic issues to prevent further improper payments and improve service delivery to its beneficiaries.

The Social Security Administration (SSA) has faced significant challenges recently, leading to a notable backlog of pending actions. According to the Office of the Inspector General (OIG), this increase is partially attributed to unexpected staff reductions, heavier workloads, and reduced overtime funding at processing centers.

Impact of Overpayments

One of the critical issues highlighted by the OIG involved a significant overpayment to a disability beneficiary. The SSA discovered in June 2021 that it had overpaid this individual by approximately $62,000. Despite learning of the mistake early on, the SSA did not initiate any action to recover the overpayment until May 2023. By this time, the beneficiary had already received an additional $53,000, bringing the total overpayment to $62,000.

Performance Goals and Backlog Growth

Although the SSA met its performance goals in four out of six years, the backlog of pending actions at processing centers continued to grow. Specifically, the backlog expanded from 3.2 million in 2018 to 4.6 million in 2023. This increase not only extended the time required to resolve pending cases but also escalated the total value of unresolved payments.

Key Factors Contributing to the Backlog

As the backlog continues to grow, it is becoming increasingly important for the SSA to address these challenges and implement effective solutions to manage and reduce the number of pending actions. This will ensure that beneficiaries receive accurate and timely payments, and that issues like overpayments are promptly addressed.

The Office of the Inspector General (OIG) has revealed some staggering statistics regarding the Social Security Administration (SSA). According to their estimates, if the SSA had tackled the backlog of pending actions at the earliest possible instance, there would have been approximately $534 million in improper payments affecting 528,000 beneficiaries. Due to delays spanning months, and in many cases over a year, these improper payments have now ballooned to an estimated $1.1 billion, as noted in the report.

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