From a recent report by Social Security's Office of Inspector General (OIG):
... Based on a recommendation in our August 2012 review ... SSA [Social Security Administration] implemented MNUP [Medicare Non-Utilization Project] in September 2013. SSA and the Centers for Medicare & Medicaid Services (CMS) exchange data, and CMS identifies Old-Age, Survivors and Disability Insurance beneficiaries who are Medicare enrollees age 90 or older, are in current payment status, have a domestic address, and have not used Medicare Part s A or B for 3 years or longer. [The idea being that they may be dead.] ...
We reviewed a sample of 46 beneficiaries SSA interviewed via telephone during its 2013 MNUP. ...
During its 2013 MNUP, SSA incorrectly concluded via a telephone interview that 5 (11 percent) of our 46 sample beneficiaries were alive when, in fact, these beneficiaries were deceased at the time of its interviews. On average, the beneficiaries had died 12 years before SSA’s 2013 MNUP, but Agency personnel concluded they were alive. As such, we estimate d SSA overpaid 73 deceased beneficiaries about $16.5 million, which included over $5 million SSA paid after it incorrectly concluded these beneficiaries were alive. We also estimated that SSA would pay over $1 million in additional over payments to deceased MNUP beneficiaries over the next 12 months if it does not suspend or terminate their benefits. ...
SSA can strengthen its policy for interviewing MNUP beneficiaries. For example, we believe SSA should conduct face-to-face interviews of all MNUP beneficiaries to establish a baseline of individuals who are alive. By conducting face-to-face interviews, SSA could enhance its ability to ensure MNUP beneficiaries are alive and reduce its risk of individuals who falsely claim to be the legitimate beneficiary via telephone. ...
SSA did not agree to require face-to-face interviews for all MNUP beneficiaries. ...This is one of those OIG reports that assumes that the Social Security Administration has either unlimited staff or zero responsibilities other than reducing overpayments. Of course, you can't overpay someone if you never get around to putting them on benefits to begin with.