The Social Security Administration is currently facing a significant challenge due to a “record-breaking backlog” of open cases, which has led to approximately $1.1 billion in projected improper payments to beneficiaries. According to a recent report from the Social Security Administration Office of the Inspector General, the backlog of pending actions has reached an all-time high of 5.2 million. The average processing time for these improper payment cases was 698 days, resulting in overpayments and underpayments to beneficiaries.
Impact of Delayed Resolution
If these pending cases had been resolved immediately, an estimated 528,000 beneficiaries would have been improperly paid about $534 million. However, after 12 months, this improper payment amount rose to approximately $756 million. Many cases have been outstanding for more than 12 months, bringing the total improper payment amount to $1.1 billion. The new policies implemented by the Social Security Administration aimed at easing the resolution of overpayment issues have not been enough to address the backlog crisis effectively.
Root Causes of the Issue
The Social Security Administration’s workflow, combined with processing delays, continues to make it vulnerable to inaccurate payments. The SSA OIG report highlights that slow processing times at the agency are contributing to the problem. Some incidents of overpayments could be avoided if beneficiaries provided necessary information to the Social Security Administration promptly. However, the agency’s inefficiencies in processing lead to delays and errors in payment calculations.
Despite meeting its performance goals for pending processing center actions in most fiscal years, the Social Security Administration has struggled to maintain staffing levels. Unexpected staff reductions, increased workloads, and insufficient overtime funding have hindered the agency’s ability to keep up with the growing number of beneficiaries. With more than 650 fewer employees working on processing center tasks compared to eight years ago, the agency is facing a critical shortage of resources.
The Social Security Administration has agreed with the recommendations put forth by the SSA OIG to address the backlog crisis. Developing a workload and staffing plan, creating performance measures for pending actions, and establishing time frame targets are crucial steps to handle the increasing workloads effectively. However, the successful implementation of these recommendations will depend on sustained adequate funding to support hiring, overtime, and technology upgrades.
The current situation at the Social Security Administration has been described as a “customer service crisis” by experts. Long phone hold times, delays in disability determinations, and inaccurate payments have become common issues faced by beneficiaries. Without a sufficient amount of funding in the agency’s budget, the crisis is projected to worsen. While there are proposals for increased funding in the Senate for the next fiscal year, the House version includes cuts to the agency’s funding. This budget constraint poses a significant challenge to addressing the backlog crisis effectively.