Feb 1, 2007

Workers Compensation Offset Errors Estimated At $149 Million

A recent study by Social Security's Office of Inspector General sampled Social Security's worker's compensation offset determinations. In general, Social Security disability benefits are reduced if a claimant is also receiving workers compensation benefits. The computation of the offset can be complicated. The study showed a high level of errors, with most of the errors shortchanging claimants. The amount of money involved is staggering. Here is a table from the study:

Summary of Sampling and Estimation Results for WC Related Errors

Error
Category

Sample – Error Claims

Estimate to Population

Claims

Dollars

Claims

Dollars

Underpayments

19

$118,386

17,858

$111,268,016

Overpayments

8

$40,204

7,519

$37,786,614

Totals

27

$158,590

25,377

$149,054,630

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