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Better Case File Monitoring of the Workers' Compensation Offset Provision by the Social Security Administration Could Save Millions

HRD-83-90 Published: Sep 30, 1983. Publicly Released: Sep 30, 1983.
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Highlights

GAO reviewed the losses that the Social Security Disability Insurance (DI) trust fund incurs each year because DI payments to disabled workers are not being reduced as required by the workers' compensation offset provision of the Social Security Act. The DI trust fund is the nation's primary source of income replacement for disabled workers. Many DI recipients are also entitled to federal disability or workers' compensation benefits. These benefits can overlap, causing disabled workers to receive more in disability benefits than they were earning before they became disabled.

Recommendations

Recommendations for Executive Action

Agency Affected Recommendation Status
Department of Health and Human Services The Secretary of Health and Human Services should work with the Secretary of Labor to establish regular matches between the DI file and Labor's workers' compensation files.
Closed – Implemented
The first match with Federal Employees' Compensation Act (FECA) files was run in June 1989. The results are expected to be reported in 1990. An ongoing matching operation is to be established if the results prove to be cost-effective. SSA also expects to do a match with the Longshore Program by the end of 1990. Given that 7 years have passed, GAO sees no outcome in the forseeable future.
Department of Health and Human Services The Secretary of Health and Human Services, to facilitate the matches, should explore with the Secretary of Labor the feasibility of including additional identifiers in Labor's computer files.
Closed – Implemented
The plan is being developed to match and review the FECA file. The first match with FECA was run in June 1989. The results are expected to be reported in 1990. SSA also expects to do a match with the Longshore Program by the end of 1990. Given that 7 years have passed so far, GAO sees no outcome in the forseeable future.

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Topics

Compensation claimsComputer matchingCost controlDisability benefitsFederal social security programsOverpaymentsTrust fundsWorkers compensationClaims paymentsBlack lung disease