Extent of Fraudulent Applications by Non-English-Speaking Immigrants Using Middlemen Is Unknown

Although some ineligible non-English-speaking immigrants obtain SSI benefits by using middlemen, the actual number of people who do so is unknown. In comparison, during the same period, the number of immigrants receiving SSI disability benefits rose from 45,000 to 267,000—approximately a sixfold increase. Moreover, the cost to the government could be higher than just the SSI payments, because in most states, Medicaid benefits and food stamps are automatically provided to SSI recipients. In addition, SSA has a shortage of bilingual staff to handle non-English-speaking applicants. SSA Monitoring of Applicants’ Use of Middlemen Is Limited

Despite recent changes in some SSA procedures, SSA’s monitoring of middlemen is limited. In California, for example, an investigation initiated by the state and assisted by the HHS OIG yielded information that, when passed on to SSA, led to SSA’s identification of 1,981 SSI recipients associated with potentially fraudulent claims involving middlemen. Routine coordination of efforts with state Medicaid agencies could enhance SSA’s ability to identify potentially fraudulent SSI claims. SSA Needs a More Comprehensive Programwide Strategy for Keeping Ineligible Non-English-Speaking Applicants Off SSI

SSA has tried a few approaches for handling some of the individual factors that contribute to SSI’s vulnerability to fraud, but needs to develop and implement a more comprehensive, programwide strategy for ensuring that only eligible applicants receive SSI benefits. SSA Initiatives

SSA established a task force in April 1993 to combat middleman fraud. Another task force effort has resulted in SSA plans to review possibly fraudulent cases involving middlemen for which benefits are already being paid. These terminations are subject to appeal, and thus far about 60 percent have been appealed. SSA is trying several approaches to reduce the use of middlemen as interpreters. 103-296)

The federal crime of SSI fraud has been elevated from a misdemeanor to a felony. Initiatives by the Social Security Administration

SSA plans to develop a nationwide database to help SSA and disability determination services (DDS) offices monitor middlemen. Related GAO Products

Supplemental Security Income: Growth and Changes in Recipient Population Call for Reexamining Program (GAO/HEHS-95-137, July 7, 1995). 2, 1995).
Why GAO Did This Study

Pursuant to a congressional request, GAO reviewed fraudulent claims for disability benefits under the Supplemental Security Income (SSI) program, focusing on: (1) the extent of fraudulent applications submitted by non-English speaking immigrants using middlemen; (2) factors that contribute to SSI vulnerability to such fraudulent applications; and (3) government initiatives to combat such fraudulent activities.

What GAO Found

GAO found that: (1) although the Social Security Administration (SSA) has been aware of allegations of SSI fraud related to the use of middlemen since 1990, the number of applicants who have obtained SSI benefits illegally through the use of middlemen is unknown; (2) the number of immigrants receiving SSI disability benefits rose from 45,000 in 1983 to 267,000 in 1993; (3) in California, about 6,000 potentially fraudulent applications have been identified, of which about 30 percent represent SSI claims being paid; (4) ineligible SSI recipients can receive about $113,000 in SSI, Medicaid, and Food Stamp benefits by the time they are 65 years old; and (5) SSA has established a task force in California to combat fraudulent applications involving middlemen and has terminated benefits for 207 recipients, as of April 1995. In addition, GAO found that SSI is vulnerable to fraudulent applications involving middlemen because SSA: (1) management practices and bilingual staff shortages enable applicants to use middlemen; (2) performs only limited monitoring of middlemen; (3) has limited funds for investigations; (4) has not coordinated its efforts to monitor middlemen with state Medicaid agencies; and (5) needs a better strategy to keep ineligible applicants from ever being accepted on SSI rolls.