The United States is home to approximately 86,000 centenarians, as reported by the Census Bureau. These individuals, aged 100 or older, represent a unique segment of the population in terms of Social Security benefits. The Social Security Administration (SSA) has long been tasked with managing benefits for these individuals while also ensuring accuracy and preventing fraud. Recent findings have brought to light challenges associated with verifying the identities of these beneficiaries, particularly those who have not been using Medicare services.
The Challenges in Verifying Identity
The SSA relies on an electronic file known as Numident, which contains personally identifiable information for every individual issued a Social Security number. This data is crucial for maintaining the Death Master File, a database used by various agencies to prevent and detect fraudulent activities. However, a report from the SSA Office of the Inspector General highlighted that approximately 18.9 million Social Security number holders born in 1920 or earlier lack death information on their Numident records. This gap in data has raised concerns about improper payments.
From 2016 to 2020, employers and individuals reported around $8.5 billion in wages, tips, and self-employment income from 139,211 Social Security numbers attributed to individuals aged 100 and older. The report underscores the complexity of ensuring that benefits reach their rightful recipients, as deceased beneficiaries are one of the multiple reasons that may lead to improper payments.
“The reported data are people in our records with a Social Security number who do not have a date of death associated with their record,” – Lee Dudek
“These individuals are not necessarily receiving benefits.” – Lee Dudek
The SSA has made efforts to contact centenarian beneficiaries who have not been recently using Medicare to confirm their identities. This initiative aims to mitigate fraud risks and reduce improper payments, which amounted to about $71.8 billion out of nearly $8.6 trillion in benefits paid from fiscal years 2015 to 2022.
Financial and Security Concerns
Despite these efforts, the reliance on ongoing payroll taxes to fund benefits places the SSA in a precarious position. The agency’s trust funds are running low, and according to Social Security’s trustees, only 83% of both retirement and disability benefits may be payable starting in 2035.
“The payment records that send 70 million checks payments a month aren’t driven by the Numident,” – Former Social Security Administration employee
“To correlate the two is just manipulative.” – Former Social Security Administration employee
The susceptibility of centenarian Social Security numbers to fraudulent use has been noted. Alex Nowrasteh of the Cato Institute suggests that these numbers are more likely to be used by undocumented immigrants seeking work rather than for stealing benefits.
“The amount of fraud is likely miniscule,” – Alex Nowrasteh
“Because they’re illegal immigrants, they don’t have access to the benefits on the back end when they retire,” – Alex Nowrasteh
In response to mounting concerns, acting commissioner Lee Dudek emphasized the SSA’s commitment to transparency and protection of beneficiaries’ information. The agency aims to address these issues while maintaining the integrity of its payment processes.
Lawmakers have also voiced their concerns, urging the protection of Social Security from potential cuts or mismanagement.
“Keep your hands off our Social Security,” – Lawmakers
In a lighter vein, Elon Musk humorously commented on the situation by suggesting a supernatural explanation for discrepancies in centenarian records.
“Maybe Twilight is real and there are a lot of vampires collecting Social Security,” – Elon Musk
What The Author Thinks
While the complexities of managing Social Security benefits for centenarians are substantial, it’s important to balance the need for efficiency with protecting vulnerable populations. Fraud prevention must be tackled strategically, ensuring that both payments and personal data are handled responsibly. Nonetheless, it’s crucial that the system continues to be transparent and accountable, addressing potential issues without causing undue panic or exaggerating the scope of fraud.
Featured image credit: FMT
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