Government overpaid $14 billion in unemployment benefits

[chanel]

Overpayments are a rampant problem in the unemployment insurance system. The federal government and states overpaid an estimated $14 billion in benefits in fiscal 2011, or roughly 11% of all the jobless benefits paid out, according to reports from the U.S. Labor Department.

Of the states, Indiana was the worst offender, making more improper payments than it did correct ones.

But of the overpaid funds, most end up in the hands of three types of people: Those who aren't actively searching for a job, those who were fired or quit voluntarily, and those who continue to file claims even though they've returned to work. Any of those circumstances would make a person ineligible for benefits.

The overpayment typically results from an administrative error made either by the government, the employer, the worker or a combination of the three.

In much rarer situations, people deliberately defraud the system, using fake documents or identities. Common scams involve prison inmates, illegal immigrants or even the deceased

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Government overpaid $14 billion in unemployment benefits - Yahoo! Finance

$14 Billion here. $14 billion there. Pretty soon you are talking about a lot of money.

11% error rate? Just wait for Obamacare.

 

[TakeAStepBack]

Is there really any surprise?

But hey! Lets have them run our healthcare too!

People will never learn that govt. programs like these will always be filled with fraud, abuse, misallocation and corruption.

It's the case in UEI, medicare, medicaid, SS and a hos tof other govt. entitlement programs.


but really, whats a few billion in error when we're already 16 trillion in error with absolutely no signs of ever getting out of it? I say, spend away. Spend this bitch into the ground adn bust the federal govt. and the FRN completely. Then the decentralization of power will occur. one way or the other.

 

[uscitizen]

Hmm an 11% overpayment rate. Seems like the privatized portion of Meidcare, Medicare Advantage costs the taxpayers 14% more than standard Medicare does.
Yes a horrible thing.

 

[TakeAStepBack]

It's easy to be wasteful when you have no skin in the game. Govt. has no skin of its own, therefore it is lofty in approach.

 

[chanel]

Exactly. Auditing is not a priority when there is an endless flow of other people's money.

And my crystal ball tells me that 11% is just what they know about. How many scammers are working under the table and collecting? Another 11%?