• 27
  • January
    2012

Notwithstanding occasional stories of abuse by Social Security Disability (SSD) applicants falsifying claims and bilking the system, agency officials say that SSD fraud is rare and that the overpayment rate is exceedingly low.

That point is being emphasized in light of recent outrage regarding the system expressed by some politicians on Capitol Hill, who claim that the eligibility hearing process is flawed by understaffed examining offices and hearing judges overburdened by too many claims.

In a recent congressional hearing on the matter, witnesses told members of the House of Representatives stories of fraud committed by some benefit recipients. In one case, a man used a fictitious name, obtained a second Social Security card and ultimately managed to qualify for benefits based on his claim of being profoundly disabled. His wife even went to an SSD interview with him and, pretending to be his neighbor, testified as to his disability.

Given the sheer size of the SSD program, which provides for millions of Americans and has annual program costs of close to $125 billion, some level of systemic fraud is to be expected.

What is noteworthy, and gleaned from the comments of officials and congressional members who pay closest attention to the program, is how rare claimants' fraud cases apparently are.

Rep. Sam Johnson, R-Texas, who is chairman of the Ways and Means health subcommittee, says that the overpayment rate for the SSDI program stands at a low 1.5 percent.

Source: LifeHealthPro, "Social Security sends out the detectives" Allison Bell, Jan. 25, 2012