The Social Security Agency (SSA) said it is reviving plans to recover 100% of overpayments to beneficiaries. Thousands of dollars.
In a statement, the SSA said late Friday it would increase the default overpayment withholding rate for Social Security beneficiaries to 100% of monthly profits for people at the same level as the level they introduced prior to last year’s reforms. Agents are required by law to regain overpayment benefits.
Last year, due to public backlash against the 100% recovery policy, the agency said. Caped Withholding rate for those who are overpaid at 10% of an individual’s monthly benefit. On Friday, the SSA said it would begin charging 100% of benefits checks to cover new cases of overpayments, but by March 27, withholding rates for overpayments remain at 10%, with supplemental security income overpayment rates as well as programs for low-income seniors and disabled Americans.
“People who have overpaid after March 27 will be fully recovered at a 100% rate of Social Security payments,” the agency said.
The 100% clawback policy sparked protests after a case in which beneficiaries were attacked with a surprising bill that demands repayment within 30 days. In some cases, the bills were tens of thousands of dollars. If the beneficiaries are unable to pay the bill immediately, the agency can dock the entire monthly Social Security payment, with some people experiencing financial poverty.60 minutes“KFF Health News and other media,
In many cases, overpayment was due to SSA. A 2022 report by an agency inspector found that around 73,000 overpayments that year were due to the lack of “effective management of benefits accuracy.”
In a new statement from the agency, Acting SSA Lee Dudeck said it was an “obligation to revert overpayment repayment policies to full withholding.”
He added: “We have a significant responsibility to be a good custodian of the Trust Fund for Americans.”
Raising the clawback rate from the current 10% to 100% would increase the amount of funds recovered over the next decade by $7 billion, the agency said. The SSA pays approximately $1.6 trillion in profits each year.
According to the National Committee on Protecting Social Security and Medicare, the revised policies will lead to financial difficulties for many people facing social security overpayments. “The lawsuit was taken superficially to reduce the costs of SSAs, but unnecessarily punishes beneficiaries who receive overpayment notices – usually through their own negligence,” a spokesman for the advocacy group said in a statement. “Many overpayments are the result of errors on the part of the SSA.”
