Why Some People Lost Social Security Benefits during the Pandemic

CW: Poverty

When Covid-19 stimulus checks were distributed to millions of Americans, the government confirmed Social Security and Supplemental Security Income recipients that they would be paid. However, some beneficiaries, including retired and disabled Americans, may have received more than they hoped for — lost benefits.

Some SSI benificiaries have had their benefits suspended or overpayments levied as a result of stimulus checks totaling up to $3,200 per individual or $6,400 per married couple over three payments. Overpayment warnings have also been sent to Social Security recipients, according to reports.

According to a report released by the SSA’s inspector general, the agency clawed back $4.7 billion in overpayments for the fiscal year 2022, while another $21.6 billion remained unpaid.

I am one of the millions of people who have received an overpayment letter. In August, I received a letter from The Social Security Administration. The letter informed me of an overpayment earlier this year.

However, the letter indicated that I had received the correct amount. Unfortunately, I still had to appeal their decision. Thankfully, the appeal was successful.

I have received SSI since 2016. Applying for and receiving benefits can be a lengthy process. Around 65% of all disability claims are denied by the Social Security Administration on the first application. The average wait time for an initial disability determination at the Social Security Administration reached an all-time high of more than six months, or 198 days, last year. It has nearly tripled in length during the previous decade.

Disability benefits need to provide a livable income for the millions of people who rely on them worldwide. Keeping disabled people in poverty is antiquated. Nobody should be forced to live in poverty.

Sources:

Fleischer, Jodie, and David Hilzenrath. “Social Security Overpays Billions to People, Many on Disability. Then It Demands the Money Back.” KFF Health News, KFF, 15 Sept. 2023, kffhealthnews.org/news/article/social-security-overpayments-investigation/.

Konish, Lorie. “Bipartisan Bill Aims to Update Rules for Federal Benefits for Elderly, Disabled.” CNBC, CNBC, 2 May 2022, https://www.cnbc.com/2022/05/02/senate-bill-seeks-to-update-supplemental-security-income-asset-rules.html.

Konish, Lorie. “Covid Stimulus Checks Caused Some Social Security, SSI Beneficiaries to Lose Benefits. Lawmakers Are Pressing for Answers.” CNBC, CNBC, 24 Oct. 2023, http://www.cnbc.com/amp/2023/10/24/stimulus-checks-lawmakers-press-social-security-on-lost-benefits.html.

Trudeau, Joyce. “Does Social Security Disability Deny Everyone the First Time They Apply?” Disability Secrets, Nolo, 21 Jan. 2022, https://www.disabilitysecrets.com/does-social-security-deny-you-the-first-time-you-apply-for-disability.html.

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