A fair number of poor people were a little less poor in 2009, thanks to $6.5 billion in overpayments by the Social Security Administration, but taxpayers paid the price.
That $6.5 billion figure includes $4 billion in excess payments through the Supplemental Security Income (SSI) program, which helps aged, blind and disabled people, who have little or no income, pay for food, clothing and shelter.
Fraud and Human Error Lead to Improper Payments
About 10 percent of all SSI payments in 2009 were "improper," according to Patrick P. O'Carroll, Jr., inspector general for the Social Security Administration. Most of the overpayments went to people who failed to fully disclose their resources. The agency also made nearly $1.5 billion in underpayments, so the total amount of improper payments in 2009 totaled $8 billion.
Errors in benefit payments to retirees, survivors and people with disabilities were not as bad, but still considerable, adding up to about $2.5 billion in overpayments and $600 million in underpayments—for 99.5 percent accuracy.
The problem with such mistakes, whether due to fraud or human error, is that it takes money away from people who need and deserve it, and costs taxpayers billions of dollars each year.
Improper Payments a Widespread Problem
But Social Security is just the tip of the iceberg when it comes to improper government payments. Overall, the federal government made $125 billion worth of payment mistakes in 2010, O'Carroll said, up from $110 billion in 2009.
President Obama and Congress are united in their desire to reduce improper government payments. In 2009, Obama ordered federal agencies to find ways to cut improper payments. Last year, Congress pledged to reduce such payments by $50 billion by 2012.
At a time when Congress is looking for ways to cut federal spending, and all too often taking aim at programs that benefit seniors, plugging holes at federal agencies that are allowing billions of dollars to slip through the cracks is a good start.