Kansas CDI unit credited with millions in savings; OIG urges statutory partnership with state

Joseph Espinosa, assistant special agent in charge with the Social Security Administration Office of Inspector General, told the Committee on Welfare Reform that the Kansas Cooperative Disability Investigations unit — a joint SSA OIG and state partnership — produced $8,700,000 in total monetary achievements and recoveries in 2024 and helped deny or cease 61 claims after 80 investigations were closed.

Espinosa described the CDI program as a nationwide task force that partners SSA special agents with state entities to investigate suspected fraud in SSA disability programs and related public assistance programs. “Fraud in the SSA programs weakens the trust fund,” he said, adding that “Social Security has a 0 tolerance for fraud.”

The CDI program investigates applicants and beneficiaries for the Supplemental Security Income program (referred to in testimony as Title 16 or SSI) and disability insurance under the Old‑Age, Survivors, and Disability Insurance program (OASDI, Title 2). Espinosa said SSA data show 44,688 Kansans received SSI in 2023 at an average of $704 per recipient and about 62,691 Kansans received Title 2 disability payments in 2023 at an average of $1,489 per beneficiary. He said the CDI program reported more than $80 million in projected savings to SSA disability programs nationwide in fiscal 2024 and recovered over $15 million in SSA funds.

The Kansas CDI unit currently includes an SSA OIG special agent team leader, an SSA CDI program specialist, one Kansas Disability Determination Services (DDS) program specialist, two Kansas Department for Children and Families (DCF) Fraud Investigations Unit (FIU) field investigators, and one DCF investigator focused on digital and open‑source intelligence, Espinosa said. He credited the Kansas DDS and the DCF FIU for restoring investigative capacity after prior law‑enforcement partners — the Kansas Department of Labor Special Investigations Unit and the Overland Park Police Department — ended participation following a change in state leadership.

Espinosa urged legislators to codify a permanent, state‑level partnership with CDI to preserve continuity of operations. “Creating a sustainable future for the Kansas CDI unit through legislative action to codify a permanent partnership between the CDI program and the state of Kansas will ensure that our state will continue to fight against fraud for all citizens of the state,” he said. He told members the CDI partnership requires no state funding for CDI positions, equipment, or vehicles because SSA pays those costs.

Committee members pressed Espinosa on investigative triggers, processes and safeguards. He said investigations are opened after DDS identifies high‑risk factors in medical files — conflicting medical records, missing medical evidence, third‑party reports, or allegations of malingering — and that members of the public may also report suspected fraud through the SSA fraud reporting interface. He explained investigators typically perform background checks, social‑media reviews and, where requested by DDS, in‑person observations of claimants in non‑medical settings to supply evidence DDS needs for medical determinations.

On penalties, Espinosa said potential criminal consequences depend on the facts and applicable statutes and that the OIG refers matters to prosecutors or administrative adjudicators as warranted. He cited federal statutes including Title 18, Section 1001 (false statements), and Title 42 sections cited in testimony relating to SSA violations. He said most CDI investigations occur before payments are issued, producing cost savings by preventing improper payments.

Committee members also raised state policy questions. Representative Carr and others asked whether Kansas should adopt clearer state benefit‑fraud statutes mirroring federal eligibility rules to allow state prosecution when federal action is not pursued; Espinosa said that was a constructive option and described Tennessee’s recent approach as an example. Representative Roser referenced Governor Laura Kelly’s Executive Order 2501 on foster‑child savings accounts and asked whether CDI will help ensure representative payees and custodial entities use benefits appropriately; Espinosa said representative payees are accountable to SSA and must file annual accountings and that misuse by a payee can make that payee liable.

Members asked about data tools. Espinosa described routine use of background‑check databases and an Equifax product to obtain recent earnings records as a preliminary cross‑check for wage‑based eligibility criteria. The committee chair said it will hear presentations on cross‑check systems and Equifax at a subsequent meeting Thursday to explore whether a state cross‑check mechanism would be useful.

The committee accepted a committee bill draft request at the start of the meeting, RS0853, described as relating to legislative oversight on increasing Medicaid benefits; the chair said Thursday is the deadline for committee bill drafts and the request was accepted with no additional discussion.

Espinosa closed by restating the CDI program’s mission to protect public benefits for those who qualify and recommended legislative steps to secure long‑term state partnership and clearer state statutes addressing public assistance fraud.