The Social Security Administration is facing a crisis with a “record-breaking backlog” of open cases, which has led to approximately $1.1 billion in projected improper payments to beneficiaries. According to a new report from the Social Security Administration Office of the Inspector General, the backlog of pending actions has climbed to an all-time high of 5.2 million as of February. The average processing time for improper payment cases is 698 days, which is a concerning issue that needs immediate attention.
Improper payments include both overpayments and underpayments, which can cause financial distress for beneficiaries. The report estimated that about 528,000 beneficiaries would have been improperly paid about $534 million if the pending cases had been resolved immediately. The longer the cases remain unresolved, the higher the improper payment amount grows, reaching a reported $1.1 billion. Despite new policies put in place by the Social Security Administration to address overpayment issues, processing delays and workflow inefficiencies continue to contribute to inaccurate payments.
The Social Security Administration’s processing centers, which handle appeal decisions, collect debt, correct records, and process benefit decisions, are struggling to keep up with the workload. The backlog of pending actions has resulted in long wait times for beneficiaries who are awaiting underpayments or dealing with larger-than-expected overpayments. In some cases, beneficiaries’ failure to provide necessary information in a timely manner exacerbates the problem, while in other instances, slow processing times by the agency are to blame.
With unexpected staff reductions, increased workloads, and less-than-expected overtime funding, the Social Security Administration has faced challenges in meeting its performance measure goals for processing center actions. Despite meeting its goals for four out of six fiscal years between 2018 and 2023, the agency has struggled due to staffing shortages. A significant decrease in the number of employees working on processing center workloads has coincided with a rise in the number of beneficiaries relying on Social Security benefits.
The Social Security Administration has agreed to the recommendations outlined in the SSA OIG’s report, which include developing a workload and staffing plan, creating performance measures for pending actions, and establishing time frame targets to handle workloads. However, the successful implementation of these recommendations will depend on sustained adequate funding for hiring, overtime, and improved technology. Without adequate funding, the agency’s ability to resolve the backlog and improve customer service will be severely hindered.
The current customer service crisis at the Social Security Administration, characterized by long phone hold times, waits for disability determinations, and inaccurate payments, is a pressing issue that needs to be addressed urgently. Increased funding for the agency is crucial to prevent the crisis from worsening and to streamline case processing. As debates over budget allocations continue in Congress, the future of the Social Security Administration’s ability to resolve backlogs and enhance services remains uncertain.