Oh, good: Govt overpaid $14 billion in unemployment benefits in 2011

posted at 12:01 pm on July 9, 2012 by Erika Johnsen

Blergh. Obviously, when gigantic bureaucracies with many moving parts are regularly engaged in doling out billions of dollars worth of ‘free’ money to millions of people, there’s bound to be a certain level of waste/fraud/abuse — but that doesn’t make the actual amount any less galling.

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.

Hey, remember President Obama’s 2008 campaign-promise to drastically cut down on waste/fraud/abuse in the federal government? The government is apparently working on a campaign to recover some of those squandered funds, but the historical average for getting our money back is typically only about one fourth of those “recoverable” funds, according to the CNN article. …I won’t hold my breath hoping that the Vice President Biden-led “Campaign to Cut Waste” will surpass expectations.

By the way, if the government can acknowledge that there are active schemes out there that use deceased/jailed/illegal people to cheat the governments out of public funds, why should it be such a stretch that there are similar schemes in place to commit voter fraud? Instead of taking any interest in combating the widespread instances of voter fraud, the Justice Department is instead busily and wholeheartedly combating “racist” voter ID laws — do you think the fact that voter fraud tends to benefit Democrats could have something to do with it?


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As the professor will say, “The country’s in the very best of hands.”

apostic on July 9, 2012 at 12:02 PM

Buying votes is an expensive proposition.

Pork-Chop on July 9, 2012 at 12:04 PM

“line by line”…….

/

ted c on July 9, 2012 at 12:05 PM

This was NO accident

NoFanofLibs on July 9, 2012 at 12:06 PM

Way to go, Sherriff Joe!

CycloneCDB on July 9, 2012 at 12:07 PM

You act like it’s our money or something.

Everyone knows that all money is part of Obama’s stash. Whatever money you get to keep is called, “government spending”. So if you want more money, or a tax cut, you want an increase in government spending. That Marx dude was a freakin’ genius.

trubble on July 9, 2012 at 12:07 PM

As a Hoosier, I confess to an inappropriate satisfaction in having snagged more fraud, waste and abuse than California and New York–the perennial winners.

2ndMAW68 on July 9, 2012 at 12:07 PM

…HEY!…they’re in charge of health care now!

KOOLAID2 on July 9, 2012 at 12:08 PM

Stimulus!

The private sector is doing fine!

gwelf on July 9, 2012 at 12:08 PM

“What is a few billions among fellow Democrat voters?”

Archivarix on July 9, 2012 at 12:08 PM

“Overpaid” makes it sound like a mistake. Let’s call it what it is, vote buying, pure and simple.

TXUS on July 9, 2012 at 12:09 PM

…Joe is not called “Biteme!”…just for his pearly whites!

KOOLAID2 on July 9, 2012 at 12:10 PM

If they are saying 14B, I would think the number is much higher as most fuzzy math that comes out of dc?

I think this quote works for a great number of elected!

“You cannot get the water to clear up until you get the pigs out of the creek.”
L

letget on July 9, 2012 at 12:10 PM

Obama rewards his constituency.

pat on July 9, 2012 at 12:10 PM

I’m sure this is Bush’s fault.

Flange on July 9, 2012 at 12:11 PM

But Queen Nancy figures that that $14 billion in wrongful spending generated $220 BILLION in economic growth!!!!!

gonnjos on July 9, 2012 at 12:11 PM

REMEMBER! John Corzine lost 1.2 billion. JP Morgan lost roughly 4 billion. Both were major scandals, and even required a Congressional investigation. Our stupid Federal Government, which now runs our healthcare, p!ssed away nearly times times the amount of JP Morgan and MF Global combined. And Obama wants more of our tax dollars?!

Weight of Glory on July 9, 2012 at 12:12 PM

And that 14 billion went to potential Obama voters.

jeffn21 on July 9, 2012 at 12:13 PM

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.

and of course there are nooo problems whatsoever with voter fraud where people may “deliberately defraud The System”….

{massive 0_0 eyeroll}

ted c on July 9, 2012 at 12:14 PM

As a Hoosier, I confess to an inappropriate satisfaction in having snagged more fraud, waste and abuse than California and New York–the perennial winners.

2ndMAW68 on July 9, 2012 at 12:07 PM

Hear, hear! I spent the first thirty years of my life as a Hoosier before changing over to CA and am glad my original homestate has done so well. Oh the other hand, I think CA’s plan to toss huge chunks of money into trains to nowhere counts as overpayment, so….

apostic on July 9, 2012 at 12:15 PM

More payola to the faithful. Wonder if extra disability checks went out as well.

Philly on July 9, 2012 at 12:16 PM

Barry’s evil plan – REPEAT – PLAN is Waste Fraud and Abuse.

bob77 on July 9, 2012 at 12:16 PM

This was NO accident

NoFanofLibs on July 9, 2012 at 12:06 PM

More moochers for the votes!

Many more to be bought!

Schadenfreude on July 9, 2012 at 12:17 PM

There is NOWHERE to cut the budget!

jukin3 on July 9, 2012 at 12:18 PM

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.

Ummmm… Might I make a suggestion?

How about…”will make a person eligible for jail time”?

Just a suggestion.

Cleombrotus on July 9, 2012 at 12:18 PM

“Cutting waste” means Michelle Obama will have to eat lobsters with the carapace.

Archivarix on July 9, 2012 at 12:18 PM

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.

“To this I say – you’re my kind of people. IDs are discriminatory” — Holder

Schadenfreude on July 9, 2012 at 12:18 PM

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.

Here’s the problem with this piece; these people aren’t defrauding the system.

In each of those three “types”, it’s up to the State’s department to make the judgement call on a per case basis. While it’s possible to only check on someone after they’ve started on unemployment to see if they’re “actively seeking”, you can’t say “I was let go” and not have your employer corroborate. As for returning to work and still collecting, what exactly is “returning to work”. They garnish your amount depending on how much you make working part-time. If the person goes back full time, somebody has to listed on a payroll somewhere.

This article is written to make Team Barry look fiscally responsible. The facts as to how Unemployment operates and who exactly is grifting the system are not equal. If you toss people holding down several part-time jobs off unemployment after losing a full-time position, they’re only going to fall farther behind and eventually end up in financial disarray.

budfox on July 9, 2012 at 12:18 PM

Ummmm… Might I make a suggestion?

How about…”will make a person eligible for jail time”?

Just a suggestion.

Cleombrotus on July 9, 2012 at 12:18 PM

Read the whole article next time. They already are.

budfox on July 9, 2012 at 12:19 PM

do you think the fact that voter fraud tends to benefit Democrats could have something to do with it?

Do you think most H2O is wet?

Do you think the sun rose in the East today?

Schadenfreude on July 9, 2012 at 12:20 PM

And the Buffet Tax would bring in $4.7B during that same period. So put in context, the tax increase Obama says is absolutely dire would fund about 1/3 of the fraud and abuse in the unemployment compensation program.

BKeyser on July 9, 2012 at 12:21 PM

De adults! Dey is in sharge!

Another round of drinks on the HOUSE!!!

ajacksonian on July 9, 2012 at 12:21 PM

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.

I have to tell ya’, I can almost overlook them voting but the deceased people collecting unemployment is a bit of a stretch, don’t ya’ think? Where did that money go?

Boats48 on July 9, 2012 at 12:23 PM

This can’t be true! Isn’t Sheriff Joe on the job?

GarandFan on July 9, 2012 at 12:23 PM

True unemployment rate

Schadenfreude on July 9, 2012 at 12:23 PM

I’m pissadointed that this didn’t get more play in the media: IRS Whistleblower Blows the Roof Off IRS Tax Fraud

slickwillie2001 on July 9, 2012 at 12:25 PM

Government mismanaged, and OVERPAID $14 bilion in unemployment benefits!
Way to go!
I got an idea! Let’s put them in charge of our healthcare!!

ToddonCapeCod on July 9, 2012 at 12:29 PM

Ot:
Too funny the lsm is following in gibbsy footsteps about mitt needs to show his tax records but they had no concerns with dear leader not showing his college records

cmsinaz on July 9, 2012 at 12:32 PM

slickwillie2001 on July 9, 2012 at 12:25 PM

He was already demoted, his salary cut and is worried about his job. Holder will likely get rid of the IG, before the report comes out.

Schadenfreude on July 9, 2012 at 12:32 PM

his tax records but they had no concerns with dear leader not showing his college records

cmsinaz on July 9, 2012 at 12:32 PM

…and still don’t.

Schadenfreude on July 9, 2012 at 12:33 PM

Why is it the US government never overpays me???

patch on July 9, 2012 at 12:37 PM

Whatever. It’s just printed up paper anyway.

rickv404 on July 9, 2012 at 12:40 PM

Maybe Obama and Holder were running a Fast & Furious scheme to track unemployment scams? Nahhh.

AubieJon on July 9, 2012 at 12:40 PM

Tru dat schadenfreude

cmsinaz on July 9, 2012 at 12:41 PM

Online Streaming!

The Rush Limbaugh Show on Talk Radio 1380 – WMLP
Conservative from Milton, PA

http://tunein.com/radio/The-Rush-Limbaugh-Show-p20617/

canopfor on July 9, 2012 at 12:41 PM

Why is it the US government never overpays me???

patch on July 9, 2012 at 12:37 PM

You’re not a moocher/looter.

Schadenfreude on July 9, 2012 at 12:42 PM

Let us review…

Classic Ronald Reagan vs. Present-Day Democrats

ITguy on July 9, 2012 at 12:43 PM

Terrific,over payments,more burden cometh to those that
know,they didn’t deserve it!

I bet,another growth in Government is coming……
….in the form of IRS,or side-deals with Collection
Agencys!!!!!!!!!!!!!!!!!!!!!!!

canopfor on July 9, 2012 at 12:44 PM

BTW,Hopeys Press Conference has just concluded!!

TAXING THE RICH WAR FRONT………..has begun………..AGAIN!
==============================================================

‘I’m calling on Congress to extend the tax cuts on the 98% of Americans who make $250,000 or less for another year’ – Obama from broadcast

Submitted 29 mins ago by editor

‘I believe it’s time to let the tax cuts for the wealthiest Americans, folks like myself, to expire,’ Obama says – from broadcast

Submitted 32 mins ago by editor

canopfor on July 9, 2012 at 12:46 PM

“Free” Money? I thought that people and employers paid into the system. It is not a “free” handout.

damian1967 on July 9, 2012 at 12:49 PM

Fourteen billion dollars?

That’s like a rounding error for these clowns.

Besides, how can ‘overpay’ be applied when there’s no budget?

locomotivebreath1901 on July 9, 2012 at 12:50 PM

At least 50% of the country has no ‘skin in the game’ (thank you Bark) so this is just static.

CorporatePiggy on July 9, 2012 at 12:51 PM

FACT: the lunatic-left d-cRAT socialists WANT the unemployed (which their FAILED POLICIES HELPED CREATE) and ALL OTHER American citizens fully and completely dependent on BIG GOVERNMENT handouts through “wealth and income re-distribution” in order for them to stay in power. PROOF: Look how well that approach has worked out for the d-cRAT socialists with blacks, hispanics, American Indians, and various other groups who are now nearly 100% dependent on the BIG GOVERNMENT NANNY STATE for their entire existence – and they are solidly, mindlessly supporting d-cRAT socialism.

TeaPartyNation on July 9, 2012 at 1:01 PM

Let’s play a quick game… Assume a similar rate of overpayment/fraud, waste and abuse once ObamaCare gets well and truly going. Now, consider that most insurance companies operate on an average profit margin of around 7.5% over the last 3 years. Explain how the government will be able to increase access, while reducing costs.

ReadySetGo!!

Tremor on July 9, 2012 at 1:02 PM

Hey, somebody’s got to spread around all that excess wealth.

antipc on July 9, 2012 at 1:03 PM

Well, let’s just subtract that $14 billion from the Labor Department budget that the Democrats passed…………

DaveDief on July 9, 2012 at 1:11 PM

Hey, remember President Obama’s 2008 campaign-promise to drastically cut down on waste/fraud/abuse in the federal government?

NOt when it gets in the way of redistribution, though.

PattyJ on July 9, 2012 at 1:13 PM

TeaPartyNation on July 9, 2012 at 1:01 PM

100%? You have something to back these numbers up?

damian1967 on July 9, 2012 at 1:13 PM

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.

There’s something wrong here, yeah I know…no kidding.
But seriously, in order to collect unemployment you have to get info from the employer, who can appeal and then have a hearing. If you were fired or quit your employer would file an appeal within a period of time. Meanwhile you could collect.
Now I’ve seen instances where employers screwed that up…late filings, wrong paperwork, etc. But even so, it is up to the judge at the hearing to decide the case.
As for searching for work or returning to work, most states don’t require you to prove that unless you are somehow reported. In the case of returning to work, eventually your tax report would be forwarded. But it isn’t like the past where you had to report in person every two weeks. So this is the government’s fault for creating a program that’s easily defrauded. Nothing new there.

Deanna on July 9, 2012 at 1:16 PM

Over payments on unemployment has been going on forever, regardless of who is in office.

It is high and unacceptable, however with the percentage of unemployment, it is in line with previous years.

This is not a right or left problem, it is a government problem.

damian1967 on July 9, 2012 at 1:18 PM

Obama – “Our ship is leaking and we are taking on water at an alarming rate so I propose making some holes in the ship to let the water out”.

ghostwalker1 on July 9, 2012 at 1:34 PM

Let’s play a quick game… Assume a similar rate of overpayment/fraud, waste and abuse once ObamaCare gets well and truly going. Now, consider that most insurance companies operate on an average profit margin of around 7.5% over the last 3 years. Explain how the government will be able to increase access, while reducing costs.

ReadySetGo!!

Tremor on July 9, 2012 at 1:02 PM

From a great man:

“It’s amazing that people who think we cannot afford to pay for doctors, hospitals and medication somehow think that we can afford to pay for doctors, hospitals and medication and a government bureaucracy to administer it.”

Thomas Sowell

slickwillie2001 on July 9, 2012 at 1:35 PM

You think this was by accident??? Hah.

tarpon on July 9, 2012 at 1:55 PM

Govt overpaid $14 billion in unemployment benefits in 2011

This is merely an undocumented stimulus program.

BobMbx on July 9, 2012 at 2:53 PM

In this age of advanced technology, how the heck is this stuff still happening? How hard is it just to check someone claim? Who is approving all these claims?!

Must be super quality people they have working for the government. NOT.

RadioAngel on July 9, 2012 at 3:57 PM

A little bit of money missing from the books may be honest errors. A lot of money means you’re getting ripped off. But vast sums of money walking… that’s an inside job. How much government money will the Obama team spend to win votes? This is just a start.

theCork on July 9, 2012 at 5:01 PM