Understanding the Social Security Payments Issue: A Breakdown
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Clarification from SSA Head, Lee Dudek:
- Lee Dudek, the acting head of the Social Security Administration, clarified that individuals listed as over 100 years old are not necessarily receiving benefits. Their records simply lack a death date, which can cause the system to incorrectly assume they are alive.
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Claims by Trump and Musk:
- President Trump and Elon Musk claimed that benefits were being paid to individuals aged 100, 200, or even 300 years old. These claims, while attention-grabbing, are exaggerated. The SSA stops payments at 115 years old, making the higher ages irrelevant.
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COBOL System Issues:
- The SSA uses an outdated COBOL programming language which lacks date-handling capabilities. This results in defaulting some records to dates over 150 years old. Updating the system was deemed too costly ($9 million), so it remains unchanged, with payments already halted at 115.
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Improper Payments Context:
- While improper payments do occur, they totaled $71.8 billion out of $8.6 trillion over seven years, less than 1%. Most were overpayments to the living, not the deceased, indicating fraud isn’t as rampant as suggested.
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Role of DOGE and Treasury:
- Musk’s DOGE team can only access SSA records, not modify them. The Treasury recovered $31 million in improper payments as part of a pilot program, expecting to recover more over three years, though amounts are small relative to the budget.
- Expert Opinions and Political Implications:
- Experts note that Social Security’s error rates are low compared to programs like Medicaid. Focusing on these claims might misleadingly suggest simple fixes, while real solutions require tough decisions on taxes and benefits. The White House emphasizes finding waste, using the $71.8 billion figure to push for accountability.
In summary, the issue is more about data management and outdated systems rather than widespread fraud. The claims by Trump and Musk exaggerate the problem, while experts highlight the need for nuanced solutions to address Social Security’s financial challenges.
