Paying Money To Dead People

     The Wall Street Journal is running a story on a report by Social Security's Office of Inspector General concerning payment of benefits to 1,546 people listed in the Death Master File as dead. 

     It's funny. I had seen the same report and thought it showed that on the whole Social Security was doing a good job. I thought about posting about the report but decided that it wasn't of any real consequence. Obviously, I don't think it's a good idea to pay money to people listed as dead and I support reasonable efforts to prevent this but the error rate discussed here seems so low that I think things are going pretty well.

     Social Security's reaction was to point to its 99.9% payment accuracy rate. Isn't that good enough? 

     Was this report really newsworthy? 

     Update: Matthew Yglesias makes the same point. Social Security's payment accuracy rate is astonishingly good.

An Original Type Of Fraud

     From Inside NOVA, which, I think, stands for Northern Virginia:

A former Woodbridge woman was sentenced Friday to one day in prison, plus three years of supervised release, for committing Social Security fraud by helping her husband claim he was dead. ...

According to documents on file at U.S. District Court in Alexandria, Rios’ husband, Luis Melecio Rios Guizado, was wanted on charges of taking indecent liberties with a minor in Prince William County in 2007 when he fled to Peru, his native country.

Rios visited Guizado there and her gave her a false Peruvian death certificate, claiming he had died, “in order to have the charges filed against him in Prince William County dropped,” according to a news release from the Social Security Administration. ...

According to court documents, Rios presented the fake death certificate in Prince William General District Court in May 2007, in order to quash her husband’s outstanding warrant. She then presented the fraudulent document to the Social Security Administration in June 2007, so she could collect survivors’ benefits for herself and her five children, court documents state.

Authorities say that Rios and her children collected $127,000 in Social Security benefits between June 2007 and May 2011.

I'm Not Expecting Calm Deliberation

     The House Committee on Oversight and Government Reform has scheduled a hearing for June 27 at 9:30 a.m. on Oversight of Rising Social Security Disability Claims and the Role of Administrative Law Judges. This is supposed to be the first of a series of hearings on this subject. In advance of the hearing, there is an Associated Press piece saying that Social Security's Administrative Law Judges (ALJs) are approving claims at "strikingly high rates." There is also mention of "management problems" which have led to "misspending." The article quotes Rep. James Lankford, R-Okla., chairman of the House Oversight Subcommittee on Energy, Policy, Health Care, and Entitlements as saying "This is not one or two judges out there just going rogue and saying they are going to approve a lot of cases. This is a very, very high rate" of approving claims.

     I suppose this particular House Committee does some good but under both Democrats and Republicans, it has had a reputation for conducting partisan witch hunts when the White House has been in the hands of the opposite party.

     By the way, didn't Social Security's ALJs as a group receive an official award from the American Bar Association back in the early 1990s for demonstrating courage in resisting outside pressure?

Error In Blast E-Mail From SSA

     I received this e-mail from Social Security today, probably because I have set up a MySSA account:

Affordable Health Care

Need health insurance or know someone who does?  Thanks to the Affordable Care Act, more Americans now qualify to get coverage that fits their needs and budgets.  Visit the Health Insurance Marketplace at www.HealthCare.gov or call 1-800-318-2596 to get more information.  If you are deaf or hard of hearing, you may call 1-855-889-4325.

 

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Questions for SSA? Contact Us

     What you see if you try to go to the HealthCare.gov link is not HealthCare.gov but a Social Security website asking that you enter the "Word of the Day." I think somebody made a mistake. I wonder how many people got this e-mail with a bad link.

     Update: They're resent the e-mail with the correct link.

Hearing Office Average Processing Time Report

     From the newsletter of the National Organization of Social Security Claimants Representatives (click on each page to view full size):

Why Is The Chamber Of Commerce Attacking Social Security?

     Jamelle Bouie writing for the Washington Post asks why the U.S. Chamber of Commerce has rededicated itself to a campaign to slash Social Security. Bouie notes that the Chamber's executive director for government affairs recently gave a speech about Social Security that was filled with overstatements and inaccuracies, a speech that seemed lifted from Republican campaign rhetoric. 

     The U.S. Chamber of Commerce has never been a liberal organization but the question is why it wants to attack Social Security. Why not just stick to the knitting -- issues that directly affect business interests?

I Don't Know What To Make Of This

     Below is a table from the Social Security Administration's monthly International Update. The Update deals, in part, with changes made in early retirement programs. I don't think that differences in social insurance programs can explain these dramatic differences between countries or that changes in social insurance programs explain the differences over time in individual countries. I don't know what to make of a lot of this. For example, why the dramatic differences between Spain and Portugal for those aged 65-69? In any case, the Update notes that many European countries are raising the minimum age for early retirement under their social insurance programs and that they are generally encouraging older workers to stay in the workforce, or, perhaps, more accurately, punishing those who don't.

Table 1. Older workers in the labor force in selected European Union countries, as a percentage of their age group, 2001 and 2011

Country	Aged 55–64		Aged 65–69
	2001	2011	2001	2011
Belgium	25.2	38.7	2.4	3.5
Czech Republic	37.1	47.6	7.6	9.3
Denmark	56.5	59.5	12.2	13.5
Finland	45.9	57.0	5.3	11.8
France	30.7	41.4	2.1	5.3
Germany	37.9	59.9	5.4	10.1
Greece	38.0	39.4	10.3	8.6
Ireland	46.9	50.8	14.8	16.8
Netherlands	37.3	56.1	5.6	11.4
Poland	29.0	36.9	10.8	9.4
Portugal	50.2	47.9	27.8	21.9
Spain	39.2	44.5	3.9	4.5
SOURCE: "Older Workers Scorecard, 2001, 2005, and 2011," OECD, 2011.

Problems With MySocialSecurity

     From the testimony of Theresa Gruber, Assistant Deputy Commissioner for Operations, Social Security Administration to the Senate Special Committee on Aging:

In May 2013, we added key measures to combat fraud through our on line MySocialSecurity portal. For example, we have added unique and stringent fraud protection tools to our online registration and authentication technology. Because of these changes, we have seen a significant drop in the volume of successful MySocialSecurity registrations - indicating we may be preventing some fraudulent accounts from being established. We also established an executive-level workgroup tasked to identify additional fraud deterrent measures to explore and implement, including items recommended by OIG. We will be implementing several of these real-time fraud prevention measures by the end of the year. In August 2013, we will eliminate the ability change payment information via the internet for users who have a block in place.

     Some things to note here. At the moment, putting a block on one's online MySocialSecurity "portal" doesn't prevent some stranger from using one's online MySocialSecurity "portal" to divert your Social Security benefits to a bank account they control. Are you kidding me? What does a "block" mean if it doesn't block this? Why is Social Security even pretending that a "block" is of some use when they know it is worthless and they don't have a plan to change this situation for at least another couple of months? Second, now that Social Security has implemented new fraud prevention measures, they've seen a significant drop in online registrations. This indicates one of two things: either fraudulent registrations were a significant part of all registrations or a significant number of those who want to establish an account for genuine reasons are being thwarted by the new security measures. Either way, this isn't good news.