The Social Security Administration is currently facing a significant backlog of open cases, leading to an estimated $1.1 billion in improper payments to beneficiaries. This issue has been identified in a recent report from the Social Security Administration’s Office of the Inspector General. The backlog of pending actions has reached a record high of 5.2 million, with an average processing time of 698 days for improper payment cases.
The report highlights that improper payments include overpayments and underpayments to beneficiaries, with processing delays exacerbating the situation. The longer it takes for the agency to process pending actions, the longer beneficiaries have to wait for their payments, leading to larger overpayments that need to be corrected. In some cases, overpayments could have been prevented if beneficiaries provided necessary information to the agency in a timely manner. However, slow processing times by the agency also contribute to inaccurate payments.
Earlier this year, the Social Security Administration implemented new policies to address overpayment issues, aiming to make it easier for beneficiaries to resolve such issues. These policies aimed to relax previous rules that required beneficiaries to pay back 100% of the overpaid amount. Despite these changes, the agency’s workflow remains vulnerable to inaccurate payments due to pending cases and processing delays.
The report notes that the Social Security Administration has faced unexpected staff reductions, increased workloads, and insufficient funding for overtime in recent years. As a result, the agency has struggled to meet its performance goals for pending processing center actions, leading to delays in resolving beneficiary claims and adjustments. The agency currently has more than 650 fewer employees working on processing center tasks compared to eight years ago, while the number of beneficiaries continues to rise.
The Social Security Administration has agreed to implement recommendations from the Office of the Inspector General’s report, including developing a workload and staffing plan, creating performance measures for pending actions, and establishing time frame targets for handling workloads. However, the successful implementation of these recommendations will depend on sustained adequate funding for hiring, overtime, and improved technology. A plea for adequate funding has been made to address the agency’s customer service crisis, which includes long phone hold times, delays in disability determinations, and inaccurate payments.
The report warns that the current funding constraints faced by the Social Security Administration could worsen the customer service crisis. Without sufficient funding, it may be challenging for the agency to address long processing delays and resolve the backlog of pending cases. While there have been proposals for increased funding in the Senate, the House has suggested cutting the agency’s funding, which could further hamper efforts to improve operations and reduce improper payments.
It is evident that the Social Security Administration is facing significant challenges in processing pending actions and addressing improper payments to beneficiaries. To overcome these challenges, sustained adequate funding, staffing, and improved technology are crucial for the agency to enhance its operations and provide timely and accurate payments to beneficiaries.