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Social Security: Causes of Increased Overpayments, 1986 to 1989

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Report Type Reports and Testimonies
Report Date Sept. 28, 1992
Report No. HRD-92-107
Subject
Summary:

GAO reported in July 1991 (GAO/HRD-91-46) that the amount of newly detected benefit overpayments by the Social Security Administration (SSA) had increased from $1 billion in 1986 to nearly $1.5 billion in 1989. Several factors account for the $500-million increase. First, a one-time accounting adjustment to SSA overpayment records cut the amount of overpayment detections in 1986 from about $1.3 billion to $1 billion. This $340 million adjustment accounts for 68 percent of the increase. Second, SSA estimates that an operational improvement enhanced overpayment detection by about $100 million, or 20 percent of the increase. Growth in the number of people receiving benefits along with increases in benefit levels accounts for the remaining increase in overpayment detections. Although staff reductions could have led to increases in overpayments, GAO found no evidence to support this.

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