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Monday, June 8, 2015

Social Security Disability Overpayments

Social Security's inspector general has reported on disability overpayments. The summary:
Our review of 1,532 beneficiaries in current pay status as of October 2003 found that over a 10-year period (from October 2003 through February 2014), SSA assessed overpayments for 44.5 percent of sampled beneficiaries. Based on the sample, we estimated 
  • SSA assessed overpayments totaling about $16.8 billion between October 2003 and February 2014 for approximately 4 million beneficiaries who were in current payment status in October 2003;
  •  SSA recovered about $8.1 billion of the $16.8 billion in overpayments it assessed; and
  • SSA prevented about $8 billion in overpayments between October 2003 and February 2014 to approximately 1 million beneficiaries in current pay status in October 2003 by suspending monthly payments.
Additionally, the overpayment rate in Fiscal Year 2004 was 3.1 percent of all benefits paid that year. SSA reviewed the draft report and provided technical comments regarding unavoidable overpayments related to medical improvement, which we incorporated into the body of this report.