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HRD-80-4 1 (1979-10-16)

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                  UNITED STATES GENERAL ACCOUNTING OFFICE
                         WASHINGTON, D.C. 20548


HUMAN RKSOURC98

DIVlIION
    B-164031(4)           110596             OCTOBER 16,1979



    The Honorable Patricia Roberts Harris
    The Secretary of Health, Education,     C)
      and Welfare                        c,

    Dear Mrs. Harris:

         Subject: f ocial Security Should Obtain and Use
                   State Data to Verify Benefits for All
                   Its Programs3(HRD-80-4)

         The Social Security Administration (SSA) administers
    four programs that pay monthly benefits to 39.5 million aged
    and disabled persons and/or their survivors and dependents.
    Some of these recipients are paid benefits from more than
    one program. Benefit payments for these programs--Old-Age
    and Survivors Insurance, Disability Insurance, Supplemental
    Security Income (SSI), and Federal Black Lung--are expected
    to total about $108.5 billion in fiscal year 1979. The
    integrity of these programs depends, to a large degree, on
    recipients voluntarily reporting changes in their income,
    resources, and other eligibility circumstances. This infor-
    mation is vital since it may eliminate a recipient's eligi-
    bility or reduce his/her benefit amount.

         Estimates of the impact of reporting failures are limited
    to the SSI program. According to SSA's Office of Assessment,
    $257.4 million in payment errors were made during fiscal year
    1978 because SSI recipients provided inaccurate or incomplete
    information or failed to report changes in their circumstances.
    While much information on recipients is currently maintained
    by State and local governments, SSA's efforts to obtain
    this data have been fragmented and uncoordinated.

         SSA has successfully used records maintained by other *       ,)
    Federal agencies for reducing erroneous SSI payments. These
    agencies include the Veterans Administration (VA) and Rail-
    road Retirement Board. SSA has been able to obtain these



                                  007366                 Il°5°36)

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