Posted on 03/08/2025 4:21:14 AM PST by Libloather
The Social Security Administration (SSA) said it is reinstating a plan to recover 100% of overpayments to beneficiaries, a policy the agency had abandoned last year after an outcry over cases in which the practice led some Americans to receive shock bills amounting to thousands of dollars.
In a statement, SSA said late Friday that it will increase the default overpayment withholding rate for Social Security recipients to 100% of a person's monthly benefit, the same level that it had in place before last year's reform. The agency is required by law to claw back overpaid benefits.
Because of public backlash over the 100% recovery policy, the agency last year had capped the withholding rate for someone who had been overpaid at 10% of the person's monthly benefit. On Friday, the SSA said it will start claiming 100% of benefit checks to cover new cases of overpayments, while the withholding rate for people with overpayments before March 27 will remain at 10%, as will the rate for overpayments for Supplemental Security Income, a program for low-income seniors and disabled Americans.
"People who are overpaid after March 27 will automatically be placed in full recovery at a rate of 100% of the Social Security payment," the agency said.
The 100% clawback policy had sparked an outcry after instances in which beneficiaries were hit with surprise bills that demanded repayment within 30 days. In some cases, the bills were for tens of thousands of dollars. If beneficiaries were unable to immediately pay the bill, the agency could dock their entire monthly Social Security payment, leaving some people financially destitute, as reported by "60 Minutes," KFF Health News and other media outlets,
In many cases, the overpayments were the fault of SSA. A 2022 report by the agency's inspector general found...
(Excerpt) Read more at cbsnews.com ...
Sometimes, grandpa is buried in the backyard and the death is not reported anywhere to anyone.
So true and if it’s reported it makes it a little more difficult for them to vote for the next Democrat !
SSDI (disability) is paid from a
seperate account. There is a two
grace period while (your) case
is adjudicated. The amout (you)
recieve once approved is based on
(your) 5 highest years of earnings.
(your) SSDI automatically converts
to SSI when (you) turn 65.
Where the cheating happens is when
the applicant falsifies their
qualifiable medical conditions.
Not reporting a death is usually legally problematic.
That’s a good point - I think, if I understand you correctly, you are saying that many people only know what they get by what they receive. Therefore, they may not even know a deposited amount contains an overpayment.
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