The Social Security Administration (SSA) announced that it is reinstating a policy to collect 100% of overpayments to recipients, which the agency discontinued last year following an outcry over cases in which the policy resulted in some Americans receiving surprise bills totaling thousands of dollars. The Social Security Administration announced 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 as before last year’s reform. The agency is required by law to reclaim overpayment benefits.
In 2023, an investigation by KFF Health News and Cox Media Group television stations revealed multiple examples in which the agency required beneficiaries, including people who have developmental disabilities, to repay money they should not have received, sometimes in as little as 30 days.
The majority of overpayments are related to the Supplemental Security Income program and can result from a Social Security Administration error or beneficiaries’ failure to comply with the agency’s rigorous criteria, according to the investigation. In some cases, overpayments go undiscovered for years, rising to tens of thousands of dollars before Social Security pursues payback from beneficiaries, many already struggling financially.
Justina Worrell works part-time as a kitchen assistant in an Ohio nursing facility. She has cerebral palsy, an intellectual disability, and a cardiac condition. The condition required the placement of an artificial heart valve when she was 20.
In 2022, she was earning $862 per month and receiving around $1,065 in monthly Social Security disability benefits when she received a letter from the federal government. The Social Security Administration had been overpaying her and wanted the money back, according to the letter. It instructed her to mail the government a check or money order within 30 days. The amount Worrell owed was over $60,000.
I am one of the millions of people who have received an overpayment letter. In August of 2023, I received a letter from The Social Security Administration. The letter informed me of an overpayment earlier that 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 also received a letter informing me that I had too many assets to qualify for SSI. I received the letter because I had $2,034 in my bank account because I hadn’t paid my rent yet. The Social Security Administration wanted to take away my benefits because I was a mere $34 over the asset limit.
Disability benefits need to provide a livable income for people who rely on them. Keeping disabled people in poverty is antiquated. It is a shame that The Social Security Administration wants people to struggle even more than they already are.
Sources:
Clasen-Kelly, Fred. “‘I Am Just Waiting to Die’: Social Security Clawbacks Drive Some into Homelessness.” KFF Health News, KFF, 20 Dec. 2023, kffhealthnews.org/news/article/social-security-clawbacks-homelessness/.
Diament, Michelle. “Social Security Rethinks Its Approach on Overpayments to Beneficiaries.” Disability Scoop, Disability Scoop, 21 Mar. 2024, http://www.disabilityscoop.com/2024/03/22/social-security-rethinks-its-approach-on-overpayments-to-beneficiaries/30797/.
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-
Picchi, Aimee. “Social Security Says It Will Restart Clawing Back 100% of Overpayments to Beneficiaries.” Edited by Alain Sherter, CBS News, CBS Interactive, 8 Mar. 2025, http://www.cbsnews.com/amp/news/social-security-overpayment-100-percent-trump/.