Recipients Are Increasingly Transferring Resources Worth Millions of Dollars

Since 1989, the number of SSI recipients reporting nonexcludable resource transfers has substantially increased, from fewer than 500 in 1989 to almost 2,800 in 1994. While the number of recipients reporting resource transfers is relatively small compared with the total number of SSI recipients, it represents a growing population receiving millions of dollars in SSI benefits each year. We estimate that between 1990 and 1994 these recipients transferred cars, homes, land, cash, and other resources worth over $74 million. Actual Extent of Resource Transfers Is Unknown, and the Value of Many Transferred Resources Is Unreported or Underreported

Since repeal of the resource transfer restriction in 1988, 9,326 SSI recipients reported transferring resources before applying for or while receiving SSI; however, the actual number of people who did so is unknown. SSI Transfer-of-Resource Restriction Could Also Reduce Medicaid Expenditures

Most of the 3,505 recipients who reported transferring resources were, like most SSI recipients, eligible for Medicaid acute-care benefits. An SSI transfer-of-resource restriction could possibly result in savings in the Medicaid program. SSA incurred little cost to verify the accuracy of reported information. We are sending copies of this report to the Commissioner of the Social Security Administration and other interested parties.
Why GAO Did This Study

Pursuant to a congressional request, GAO reviewed the Supplemental Security Income (SSI) program, focusing on: (1) the number of SSI recipients reporting resource transfers; (2) the kind and worth of resources being transferred; and (3) the possible savings resulting from a reinstatement of the SSI transfer-of-resources restriction.

What GAO Found

GAO found that: (1) while the number of SSI recipients reporting resource transfers has increased, they are only a fraction of the total number of SSI recipients; (2) between 1990 and 1994, 3,505 SSI recipients reported transferring resources worth more than $74 million; (3) the value of reported transferred resources varied and the actual extent of resource transfers is unknown because the Social Security Administration (SSA) does not verify or investigate SSI recipients' self-reported information about resource transfers; and (4) reinstating the SSI transfer-of-resource restriction could reduce program costs, reduce Medicaid costs, and increase SSA administrative costs.