Social Security is sending notice to correctional facilities that if they report beneficiaries that are newly incarcerated, it will be worth their while.
Social Security released a message informing of a new policy where correctional facilities can earn between $200 and $400 each time they report of a newly incarcerated individual who is receiving Social Security Disability Insurance (SSDI) or Supplemental Security Income (SSI) benefits. Under Social Security’s rules, a person who is incarcerated is not able to receive SSDI or SSI benefits. This would allow Social Security to stop SSI benefits immediately and stop SSDI benefits after a person has been incarcerated at least 30 days. It remains unclear how much money Social Security expects to save by being informed of this information and allowing the agency to suspend benefits. This new policy will begin Aug. 9 of 2018 and the Social Security Act requires the institution responsible for reporting to Social Security to enter into a written agreement with Social Security. Below are the specifics of the new program.
For every Title XVI (SSI) recipient we suspend due to the inmate information provided, we will pay the institution:
$400 for information received within 15 days of the confinement; or
$200 for information received after 15 days but within 90 days after confinement.
We will continue to pay for inmate information for our Social Security beneficiaries as we normally do under our current incentive payment law:
For every Title II (SSDI) beneficiary we suspend due to the inmate information provided, we will pay the institution:
$400 for information received within 30 days of the confinement; or
$200 for information received after 30 days but within 90 days after confinement.
Social Security plans to mail notifications of this new policy to correctional facilities July 2.
