The Social Security Administration is currently facing a critical challenge in the form of a record-breaking backlog of open cases. This backlog has led to an estimated $1.1 billion in improper payments to beneficiaries, according to a recent report from the Social Security Administration Office of the Inspector General.
As of February, the backlog of pending actions at the SSA had reached an all-time high of 5.2 million cases. Among these cases, the improper payment cases had an average processing time of 698 days, resulting in overpayments and underpayments to beneficiaries. The report estimated that if these cases had been resolved immediately, approximately 528,000 beneficiaries would have been improperly paid about $534 million. However, due to the delays in processing, this improper payment amount rose to $1.1 billion for cases that had been outstanding for more than 12 months.
One of the main factors contributing to the backlog issue is the agency’s workflow, which is vulnerable to inaccurate payments. Despite recent policy changes aimed at making it easier for beneficiaries to resolve overpayment issues, the processing delays at the SSA continue to exacerbate the problem. Processing centers that handle appeal decisions, debt collection, record corrections, and benefit decisions are at the core of this issue.
While the SSA met its performance measure goals for pending processing center actions in four of the six fiscal years between 2018 and 2023, unexpected staff reductions, increased workloads, and inadequate overtime funding hindered its progress in two fiscal years. The agency is currently operating with the lowest staffing levels in 25 years, despite a significant increase in the number of beneficiaries relying on Social Security benefits.
The SSA OIG report recommended that the agency develop a workload and staffing plan, establish performance measures for pending actions, and set time frame targets to address the backlog issue. However, the successful implementation of these recommendations will depend on sustained adequate funding for hiring, overtime, and improved technology. Without proper funding, the agency’s customer service crisis, which includes long phone hold times, waits for disability determinations, and inaccurate payments, is likely to worsen.
Future Outlook
While there are proposed funding increases for the SSA in the upcoming fiscal year, budget constraints may continue to impede the agency’s ability to eliminate processing delays and reduce the backlog of cases. According to experts, including Paul Van de Water, resolving these challenges will require a significant investment in resources and technology. Failure to address these issues promptly could have long-term implications for beneficiaries and the overall efficiency of the Social Security Administration.