$11B Social Security overpayment errors cause debt worries for millions
OAN’s Brooke Mallory
1:51 PM – Friday, March 1, 2024
In a letter on Thursday, Senators Gary Peters and Debbie Stabenow urged the Social Security Administration (SSA) to take immediate action against its overpayment errors.
The senators highlighted the severe financial hardships faced by millions of recipients, particularly the elderly and disabled, due to overpayment issues that can take years to identify. Overpaid recipients are typically expected to repay the funds.
“We have received numerous reports from Michiganders about the devastating impact of unexpected overpayments sent by the SSA to some of the most vulnerable Social Security beneficiaries. These overpayments can cause immense hardships for individuals who have done nothing wrong and are now burdened with repaying improper payments. Given their devastating consequences, it is crucial for the agency to enhance its processes and controls to minimize overpayments for beneficiaries who rely on these critical benefits,” the senators stated.
The senators revealed that the administration has admitted to disbursing at least $6 billion in overpayments annually, with a record $11 billion in fiscal year 2022 alone.
Due to the lengthy process of identifying and addressing errors, recipients may be saddled with tens or even hundreds of thousands of dollars in debt.
The lawmakers emphasized that while there may be other factors contributing to the errors, the SSA is typically responsible for the mistakes. Examples of errors include miscalculating a recipient’s benefits or failing to report changes in income to the office.
Recipients are advised to promptly report any changes in their payments.
For recipients who discover they owe the agency thousands of dollars, there are several options available. These include filing for bankruptcy, establishing a repayment plan, or contesting the claim.
“Each person’s situation is unique, and the agency handles overpayments on a case-by-case basis,” the SSA stated last year. “If a person disagrees with being overpaid or believes the amount is incorrect, they can appeal. If they believe they should not have to repay the money, they can request that the agency waive the collection of the overpayment. There is no time limit for filing a waiver.”
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What steps is the SSA taking to address overpayment errors and prevent future mistakes?
Needs to ensure that it is providing individualized support to those affected by overpayment errors. It is unacceptable for individuals to be burdened with thousands of dollars in debt due to the SSA’s mistakes,” the senators stressed.
The senators further asked the SSA to provide detailed information on the steps it is taking to address overpayment errors, including any system enhancements or process improvements. They also requested data on the number of individuals affected by overpayments and the amount of money owed by recipients.
Additionally, the senators expressed concern about the impact of overpayment errors on the future financial stability of Social Security, citing the strain it puts on the system’s resources.
They urged the SSA to prioritize the resolution of overpayment cases, implement measures to prevent future errors, and explore options for providing relief to affected recipients, such as forgiveness of certain debts.
The senators concluded their letter by urging the SSA to provide a detailed response to their inquiries within 30 days.
As recipients of Social Security benefits continue to face financial hardships due to overpayment errors, it is crucial for the SSA to take immediate action to rectify these issues. The senators’ letter serves as a reminder that the agency has a responsibility to its beneficiaries and must work diligently to minimize overpayments and provide support to those affected.
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