Connecticut DSS Faces Scrutiny Over Improper Benefit Payments
Archyde.com – March 30, 2025 – A recent audit reveals systemic issues within the Connecticut Department of Social Services, leading too improper distribution of funds across key assistance programs.
Millions Misdirected in CHIP, Medicaid, and SNAP Funds
The Connecticut Department of Social Services (DSS) is under fire following a state audit that uncovered significant discrepancies in the distribution of benefits. The audit,covering fiscal years 2023 and 2024,found that hundreds of thousands of dollars were improperly allocated through the Children’s Health Insurance Program (CHIP),Medicaid,and the Supplemental nutrition Assistance Program (SNAP). these funds went to individuals deemed ineligible due to factors such as exceeding the age limit, having excessive income, or, in some disturbing instances, being deceased.
The implications of these findings extend beyond mere accounting errors. They raise serious concerns about the integrity of the state’s social safety net and the potential for fraud and abuse. The overpayments not only drain resources from those who legitimately need assistance but also erode public trust in these vital programs.
Key Findings from the state Audit
The State of Connecticut Single Audit Report paints a concerning picture of systemic failures within the DSS. According to the report, “DSS paid benefits that clients were not eligible to receive.” This resulted in a cascade of problems, including deceased individuals’ cases remaining open, wich “created opportunities for medical providers and other unauthorized persons to misuse their Medicaid, COVID-19 Medicaid, and SNAP benefits.”
Here’s a breakdown of the key findings:
| Program | Issue | Amount |
|---|---|---|
| SNAP & Medicaid | Overpayments for deceased individuals (11 cases) | approximately $10,000 |
| CHIP | Questionable costs | Over $400,000 |
| CHIP | Payments to adults who aged out of the program | Over $600,000 |
| SNAP & Medicaid | Payments associated with “ineligible clients” | $8,713 |
The audit further revealed that in five of the 11 cases involving deceased SNAP recipients, unauthorized individuals were actively using the deceased person’s benefits. This underscores the vulnerability of the system to exploitation and the urgent need for tighter controls.
A Recurring Problem: Improper SNAP Fund Distribution
This isn’t an isolated incident.The auditor of Public Accounts has flagged similar issues with improper SNAP fund distribution in over two dozen previous audits,including the report in 2023.This pattern suggests a persistent systemic flaw within the DSS that needs immediate attention.
One of the core issues identified is the DSS’s lack of access to the state’s death data. This deficiency makes it exceedingly arduous for staff to verify dates of death and prevent benefits from being improperly disbursed to deceased individuals or their unauthorized users. Compounding the problem, the DSS’s enrollment system automatically marks alerts as complete if they aren’t addressed within a specific timeframe, potentially leading to oversights and errors.
CHIP Payments: A Persistent Area of Concern
The CHIP program has also been plagued by recurring issues, notably with payments being made to individuals who have aged out of the system.This marks the fifth time auditors have identified this problem, highlighting a significant lapse in internal controls and verification processes.
Auditors attribute this ongoing issue to the DSS’s inability to verify third-party insurance coverage for CHIP enrollees. This lack of verification allows individuals with existing insurance to potentially receive CHIP benefits improperly,further straining the program’s resources.
Recommendations for Corrective Action
The auditors have issued specific recommendations to address the identified shortcomings. To rectify the issues with CHIP payments, they urge the DSS to “strengthen internal controls.”
To prevent the improper claiming of Medicaid and SNAP benefits for deceased individuals, the auditors recommend that “The Department of social Services should provide the necessary resources and institute procedures to ensure that it uses all facts from eligibility, income, and death matches to ensure that it is correctly issues benefits to eligible clients or on their behalf.” This underscores the critical need for improved data sharing and verification processes.
Moreover, the auditors have called on the DSS to return federal reimbursements for “unallowable expenditures” claimed under Medicaid, COVID-19 Medicaid, and SNAP.This would require a thorough review of past claims and a commitment to stricter adherence to federal guidelines.
Looking Ahead: Strengthening Social Safety Nets
The findings of this audit serve as a stark reminder of the importance of robust oversight and accountability in government-administered assistance programs. While the DSS has acknowledged the issues and pledged to implement corrective measures, sustained effort and a commitment to transparency are essential to ensure that these vital programs serve their intended purpose: providing assistance to those who genuinely need it.
To prevent these issues from recurring, Connecticut is considering implementing a real-time data-sharing system between the Department of Public Health and the DSS. This would allow for immediate updates regarding deaths, ensuring that benefits are promptly terminated and preventing potential misuse. This initiative mirrors similar successful programs in states like California and Texas, which have substantially reduced improper benefit payments through enhanced data integration.
Beyond data sharing, stricter enforcement of existing regulations and increased training for DSS staff are also being considered. These measures would aim to reduce human error and improve the detection of fraudulent activity.
