Fraudulent pandemic claims higher than originally reported - Insurance News | InsuranceNewsNet

InsuranceNewsNet — Your Industry. One Source.™

Sign in
  • Subscribe
  • About
  • Advertise
  • Contact
Home Now reading Newswires
Topics
    • Advisor News
    • Annuity Index
    • Annuity News
    • Companies
    • Earnings
    • Fiduciary
    • From the Field: Expert Insights
    • Health/Employee Benefits
    • Insurance & Financial Fraud
    • INN Magazine
    • Insiders Only
    • Life Insurance News
    • Newswires
    • Property and Casualty
    • Regulation News
    • Sponsored Articles
    • Washington Wire
    • Videos
    • ———
    • About
    • Meet our Editorial Staff
    • Advertise
    • Contact
    • Newsletters
  • Exclusives
  • NewsWires
  • Magazine
  • Newsletters
Sign in or register to be an INNsider.
  • AdvisorNews
  • Annuity News
  • Companies
  • Earnings
  • Fiduciary
  • Health/Employee Benefits
  • Insurance & Financial Fraud
  • INN Exclusives
  • INN Magazine
  • Insurtech
  • Life Insurance News
  • Newswires
  • Property and Casualty
  • Regulation News
  • Sponsored Articles
  • Video
  • Washington Wire
  • Life Insurance
  • Annuities
  • Advisor
  • Health/Benefits
  • Property & Casualty
  • Insurtech
  • About
  • Advertise
  • Contact
  • Editorial Staff

Get Social

  • Facebook
  • X
  • LinkedIn
Newswires
Newswires RSS Get our newsletter
Order Prints
September 20, 2023 Newswires
Share
Share
Post
Email

Fraudulent pandemic claims higher than originally reported

Wabash Plain Dealer (IN)

You know a robbery is bad when it takes years to figure out how much was stolen. States have long known that they paid billions in fraudulent unemployment claims during the pandemic. But this week the federal government more than doubled its estimate in stolen payments to as much as $135 billion.

The new figure comes from a report released Tuesday by the Government Accountability Office (GAO). The finding is a rebuke to the Biden Administration, which had previously put the fraud total as low as $45 billion based on surveys of state programs. Congressional Republicans suspected the estimates were low and asked GAO to conduct its own study.

The agency reached its estimate by assessing a sample of more than 2,500 unemployment insurance payments issued from 2020 to 2023. The Labor Department's previous tally relied largely on adding confirmed fraud cases reported by states, but GAO auditors say that produced a massive undercount. The oversight agency assumed a higher, more plausible fraud rate by comparing unemployment insurance to similar federal programs.

The $135 billion finding places the pandemic unemployment program in a new tier of government disaster. Fraud claimed 11 percent to 15 percent of the nearly $900 billion that Washington paid out over three years. The theft rate is another demerit for a program that caused incredible harm even when it worked as planned. Federal and state governments provided an incentive for millions of people not to work with a $600 weekly jobless bonus in 2020 and up to 79 weeks of total unemployment benefits.

The GAO reports that states had recovered only $1.2 billion of stolen payments by May, out of about $56 billion of identified fraud cases. Recoveries have been sluggish despite $1.4 billion in federal aid to help states track and penalize fraudsters.

House Republicans passed a bill in May that boosts the incentive to recoup stolen payments, letting states keep up to a quarter of the federal cash they get back. Yet few Democrats signed on, the Senate hasn't voted on it, and the White House blasted the bill as a threat to Washington's "well-functioning UI system."

Well-functioning? In a sane government, the fraud explosion would be a call to action. But in today's Washington all that matters to politicians is how much money they can spend, not whether it's wasted or stolen.

A version of this editorial originally appeared in the Wall Street Journal.

Older

New Mexico increases access to mental health services

Newer

Zelis® and Google Wallet Bring Security, Convenience and Efficiency to Healthcare Consumers

Advisor News

  • Ask the right questions to turn clients into raving fans
  • The first 5 years of your career could determine the next 50
  • Your client’s $3 million portfolio doesn’t tell you their insurance needs
  • How life insurance can provide liquidity for wealthy families
  • Retirement providers turn to digital engagement to retain assets
More Advisor News

Annuity News

  • What lower interest rates mean to annuity payouts
  • AM Best downgrades A-Cap insurers amid financial and regulatory troubles
  • Lawsuit claims Delaware Life hid billions in insurer-linked investments
  • AM Best to Deliver Presentation at 2026 ACLI Annual Conference
  • Global Atlantic Announces Launch of ForeLifetime Income, a New Fixed Index Annuity
More Annuity News

Health/Employee Benefits News

  • Trademark Application for “INLAND EMPIRE HEALTH PLAN” Filed by Inland Empire Health Plan: Inland Empire Health Plan
  • Investigators at University of Pennsylvania Target Managed Care [How Should We Identify Home- and Community-Based Services (HCBS) in Medicaid Claims Data? An Evaluation and Synthesis of Algorithms]: Managed Care
  • Is Jackson'S Plan Another Attempt To Kick Medicaid Expansion Can Down The Road?
  • Recent Studies from University of New Hampshire Add New Data to COVID-19 (Role of Ssa Disability Programs In the Covid-19 Pandemic: Ssdi/ssi-protected Families From Poverty During the Covid-19 Pandemic): Coronavirus – COVID-19
  • Now you know: Marylanders are paying more for healthcare year after year
Sponsor
More Health/Employee Benefits News

Life Insurance News

  • Franklin Madison introduces guaranteed issue life insurance
  • Panel: Insurers need to rethink products, distribution to close protection gap
  • AM Best Assigns Credit Ratings to Beibu Gulf Property & Casualty Insurance Company Ltd.
  • Why more policyholders are exploring what their life insurance is worth beyond surrender value
  • New York Life Investment Management to Acquire Majority Ownership Stake in Invictus Capital Partners
Sponsor
More Life Insurance News

NEWS INSIDE

  • Companies
  • Earnings
  • Economic News
  • INN Magazine
  • Insurtech News
  • Newswires Feed
  • Regulation News
  • Washington Wire
  • Videos

FEATURED OFFERS

Press Releases

  • Lauren Sinnott Named to Ragan’s Top Women in Marketing Awards, Class of 2026 
  • Classic Car Insurer OpenRoad Insurance Expands to 40 U.S. States in Two Years
  • How Aspire General Turned an Early Technology Bet Into Claims Automation at Scale with Kyber
  • Adjusto launches AI-Native contents claims services powered by its technology platform
  • URL Insurance Group Celebrates 40 Years of Service, Growth, and Industry Leadership
More Press Releases > Add Your Press Release >

How to Write For InsuranceNewsNet

Find out how you can submit content for publishing on our website.
View Guidelines

Topics

  • Advisor News
  • Annuity Index
  • Annuity News
  • Companies
  • Earnings
  • Fiduciary
  • From the Field: Expert Insights
  • Health/Employee Benefits
  • Insurance & Financial Fraud
  • INN Magazine
  • Insiders Only
  • Life Insurance News
  • Newswires
  • Property and Casualty
  • Regulation News
  • Sponsored Articles
  • Washington Wire
  • Videos
  • ———
  • About
  • Meet our Editorial Staff
  • Advertise
  • Contact
  • Newsletters

Top Sections

  • AdvisorNews
  • Annuity News
  • Health/Employee Benefits News
  • InsuranceNewsNet Magazine
  • Life Insurance News
  • Property and Casualty News
  • Washington Wire

Our Company

  • About
  • Advertise
  • Contact
  • Meet our Editorial Staff
  • Magazine Subscription
  • Write for INN

Sign up for our FREE e-Newsletter!

Get breaking news, exclusive stories, and money- making insights straight into your inbox.

select Newsletter Options
Facebook Linkedin Twitter
© 2026 InsuranceNewsNet.com, Inc. All rights reserved.
  • Terms & Conditions
  • Privacy Policy
  • InsuranceNewsNet Magazine

Sign in with your Insider Pro Account

Not registered? Become an Insider Pro.