Welfare Benefits: Potential to Recover Hundreds of Millions More in Overpayments
HEHS-95-111
Published: Jun 20, 1995. Publicly Released: Jul 05, 1995.
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Highlights
Pursuant to a congressional request, GAO reviewed states' efforts to recover benefit overpayments in the Aid to Families with Dependent Children (AFDC), Food Stamp, and Medicaid programs, focusing on: (1) overpayments collected from current and former welfare clients in 1992; (2) factors that help or hinder effective state recovery practices; and (3) how the federal government can help states recover more overpayments.
Recommendations
Matter for Congressional Consideration
| Matter | Status | Comments |
|---|---|---|
| Congress may wish to consider amending the Food Stamp Act of 1977 to authorize states to offset current recipients' benefits, without their consent, to recover overpayments caused by agency errors. |
Closed – Implemented
|
A provision amending the Food Stamp Act of 1977 to authorize states to offset recipients' benefits without their consent to recover overpayments caused by agency errors is included in the Personal Responsibility and Work Opportunity Reconciliation Act of 1996, H.R. 3734--Section 844(b). |
| Congress may wish to consider extending the authority for states to intercept federal income tax refunds to include the recovery of AFDC and Medicaid overpayments. |
Closed – Not Implemented
|
A provision allowing states to intercept federal income tax refunds to recover outstanding AFDC overpayments was included in an earlier version of the Personal Responsibility and Work Opportunity Reconciliation Act of 1996 (PRWORA); no similar provision was included for Medicaid overpayments. The provision for AFDC overpayments ultimately was omitted in the final version of PRWORA, which abolished the AFDC program and replaced it with a state block grant program, Temporary Assistance for Needy Families (TANF). |
Full Report
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Topics
Collection proceduresDebt collectionOverpaymentsState-administered programsWelfare benefitsMedicaidFood relief programsData errorsTax refundsQuality control