1.3: Benefits and Protections

Benefits and Protections for Workers, Families, and Children

Other Information:

Through a wide range of programs, the federal government, often through states, plays an essential role in promoting and supporting work among those able to work, aiding those unable to provide for themselves, and protecting vulnerable populations. In fiscal year 2009, the federal government invested more than $453 billion in these programs (see fig. 23), which together form the foundation for the nation’s social safety net. Yet the growing federal deficit, the economic downturn, and changing workforce demographics driven heavily by the aging of baby boomers are among the many factors increasing demand for supports and benefits and challenging customary federal approaches. It is thus imperative to explore and assess other approaches for providing benefits and protections in a cost-effective manner while promoting program integrity. Assistance programs: Even during prosperous times, tens of millions of individuals and families face daunting challenges and turn to a patchwork of social programs. These programs provide needed benefits, such as financial or food assistance, or protection for vulnerable groups, such as children and the elderly: The severe economic downturn „„exacerbated these challenges, and if historic experience repeats, low-income families will be slow to recover: Poverty will continue to rise for some time, even after recovery. Figure 24 shows rising estimated outlays for food and nutrition assistance, driven mainly by the Supplemental Nutrition Assistance Program (SNAP, formerly known as the Food Stamp Program), to 2015. Further, many states are expected to „„face severe budget stresses over the next few years, raising questions about the capacity of state-administered programs to address long-standing intractable problems, such as the estimated 900,000 children who are victims of child abuse or neglect each year. Although $67 billion in Recovery Act funds is estimated to be spent on many of these programs over the next few years, concerns have been raised about the capacity of service providers beyond the availability of this additional funding. Moreover, despite an increased focus on work following the nation’s overhaul of its welfare programs and the ensuing reductions in welfare caseloads, self-sufficiency continues to elude many, such as those with a limited education or disability. As states and localities use their federal funds to try different approaches to serving those in need, it is important to gain further insight into cost-effective approaches that support desired program outcomes and appropriately balance the need for accountability with state flexibility to design programs that reflect their needs and values. Also, billions of dollars in benefits „„continue to be incorrectly paid through these social programs each year. For example, state-administered federal programs, such as unemployment insurance and SNAP, have reported billion of dollars in improper payments. Further study of federal and state efforts will be required to reduce these improper payments, as well to disseminate promising practices. „„Finally, the performance of some programs during the economic downturn—such as unemployment insurance and welfare—has raised questions about their ability to respond to varying economic conditions. In the coming years, GAO will examine federal and state efforts to deliver benefits to the target populations that appropriately balance program integrity with benefit access and that promote cost-effective approaches to achieving program goals. Worker protections: For those who are already working, the government is increasingly challenged to protect safety and health, wages, and equal employment opportunities, as well as the security of sensitive personal information, such as the Social Security number (SSN): „„Regulations and activities by federal agencies, such as the Occupational Safety and Health Administration, need revision to reflect changes in the work arrangements and demographics of the nation’s workforce. Such changes include the increasing use of telework, temporary workers, and independent contractors (who do not now receive safety and health protections through their employers). Through enforcement and other strategies, such as voluntary compliance programs, federal and state efforts must balance the need to protect workers with employers’ needs to increase productivity in an increasingly competitive global environment. „„The federal government also faces challenges in protecting workers’ sensitive personal information, such as the SSN. Despite its narrowly intended purpose, the SSN has in practice become the national identifier and is central to a range of vital transactions and services, such as obtaining a driver’s license, and receiving health care. For this reason, SSNs are key pieces of information in creating false identities. The terrorist events of September 11, 2001, underscore the importance both of issuing SSNs only to those eligible for them and protecting those SSNs already assigned to individuals. The flow of noncitizens into the United States and the accompanying number of SSNs issued to this group over the last several years add to the importance of having sound practices to avoid issuing SSNs to those who do not qualify for them and to ensure the identity of those who receive them. Millions of people become victims of identity theft each year—up to 4.6 percent of the U.S. adult population— translating into losses exceeding $50 billion. Recent security breaches of both federal and private data sources have highlighted the challenges to preventing identify theft. GAO will assess federal and state efforts to appropriately use and safeguard SSNs and prevent their improper use in securing other key documents, such as driver’s licenses, as well as ensure safety, health, and other protections for workers. Disability programs: Federal disability programs have grown during the economic downturn and are poised to grow further as more baby boomers reach their disability-prone years. For example, because of the increasing number of beneficiaries relative to the number of workers paying into Social Security, the Social Security Administration’s Disability Insurance program is projected to grow by more than 40 percent between 2004 and 2030. Of the 54 million Americans with physical or mental impairments, millions apply for benefits each year through one or more of the nation’s disability programs. Almost 200 federal programs administered by 21 federal agencies provide various types of support for individuals with disabilities, including monetary benefits, employment-related assistance, medical care, and information. Several of these 21 agencies provide similar services, potentially causing overlap and duplication. The Social Security Administration and VA oversee four of the largest programs, which collectively paid out more than $185 billion in cash benefits to more than 17 million beneficiaries in 2008. These programs have struggled to address increasing workloads; provide timely, accurate, and consistent eligibility decisions; and prevent overpayments. At the same time, the tens of thousands of service members wounded in recent military conflicts have strained the capacity of the DOD and the VA disability evaluation processes, including their ability to provide timely and accurate disability decisions. Moreover, other federal disability programs face challenges in providing additional support and services, including health care and return-to-work assistance, such as vocational rehabilitation. GAO added modernizing disability programs to its High-Risk List in 2003, noting that federal disability programs in general do not fully incorporate how advances in medicine and technology impact individuals’ ability to live with greater independence and function in work settings. Taken as a whole, efforts need to continue to be made to better position disability programs to provide meaningful and timely support for persons with disabilities. Effectively coordinating our nation’s myriad disability programs is essential to ensure efficient service delivery and improve supports. GAO will assess federal efforts to provide accurate, timely, and consistent disability decisions to program applicants; reduce fraud, waste, and overpayments; and modernize and increase coordination among federal disability programs, which could help minimize overlap and duplication. This would include assessing how federal programs can leverage new medical and technological advances to increase work participation for more individuals at the earliest viable point. To support government efforts to address these issues, we will use the following performance goals and key efforts:

Stakeholder(s):

• Workers


• Families


• Children

Indicator(s):

Indicator:1

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