{"id":2004,"date":"2024-11-18T10:00:00","date_gmt":"2024-11-18T10:00:00","guid":{"rendered":"https:\/\/medical-article.com\/?p=2004"},"modified":"2024-11-18T10:00:00","modified_gmt":"2024-11-18T10:00:00","slug":"social-security-tackles-overpayment-injustices-but-problems-remain","status":"publish","type":"post","link":"https:\/\/medical-article.com\/?p=2004","title":{"rendered":"Social Security Tackles Overpayment \u2018Injustices,\u2019 but Problems Remain"},"content":{"rendered":"

In March, newly installed Social Security chief Martin O\u2019Malley criticized agency \u201cinjustices\u201d<\/a> that \u201cshock our shared sense of equity and good conscience as Americans.\u201d<\/p>\n

He promised to overhaul the Social Security Administration\u2019s often heavy-handed efforts<\/a> to claw back money that millions of recipients<\/a> \u2014 including people who are living in poverty, are elderly, or have disabilities \u2014 were allegedly overpaid, as described by a KFF Health News and Cox Media Group investigation last year.<\/p>\n

\u201cInnocent people can be badly hurt,\u201d O\u2019Malley said at the time.<\/p>\n

Nearly eight months since he appeared before Congress<\/a> and announced a series of policy changes, and with two months left in his term, O\u2019Malley\u2019s effort to fix the system has made inroads but remains a work in progress.<\/p>\n

For instance, one change, moving away from withholding 100% of people\u2019s monthly Social Security benefits to recover alleged overpayments, has been a major improvement, say advocates for beneficiaries.<\/p>\n

\u201cIt is a tremendous change,\u201d said Kate Lang of Justice in Aging, who called it \u201clife-changing for many people.\u201d<\/p>\n

The number of people from whom the Social Security Administration was withholding full monthly benefits to recoup money declined sharply \u2014 from about 46,000 in January to about 7,000 in September, the agency said.<\/p>\n

Asked to clarify whether those numbers and others provided for this article covered all programs administered by the agency, the SSA press office did not respond.<\/p>\n

Another potentially significant change \u2014 relieving beneficiaries of having to prove that an overpayment was not their fault \u2014 has not been implemented. The agency said it is working on that.<\/p>\n

Meanwhile, the agency seems to be looking to Congress to take the lead on a change some observers see as crucial: limiting how far back the government can reach to recover an alleged overpayment.<\/p>\n

Barbara Hubbell of Watkins Glen, New York, called the absence of a statute of limitations \u201cdespicable.\u201d Hubbell said her mother was held liable for $43,000 because of an SSA error going back 19 years.<\/p>\n

\u201cIn what universe is that even legal?\u201d Hubbell said. Paying down the overpayment balance left her mother \u201cessentially penniless,\u201d she added.<\/p>\n

In response to questions for this article, Social Security spokesperson Mark Hinkle said legislation is \u201cthe best and fastest way\u201d to set a time limit.<\/p>\n

Establishing a statute of limitations was not among the policy changes O\u2019Malley announced in his March congressional testimony. In an interview at the time, he said he expected an announcement on it \u201cwithin the next couple few months.\u201d It could probably be done by regulation, without an act of Congress, he said.<\/p>\n

Speaking generally, Hinkle said the agency has \u201cmade substantial progress on overpayments,\u201d reducing the hardship they cause, and \u201ccontinues to work diligently\u201d to update policies.<\/p>\n

The agency is underfunded, he added, is at a near 50-year low in staffing, and could do better with more employees. The SSA did not respond to requests for an interview with O\u2019Malley.<\/p>\n

O\u2019Malley announced the policy changes after KFF Health News and Cox Media Group jointly published and broadcast investigative reporting<\/a> on the damage overpayments and clawbacks have done to millions of beneficiaries.<\/p>\n

When O\u2019Malley, a former Democratic governor of Maryland, presented his plans to three congressional committees in March, lawmakers greeted him with rare bipartisan praise. But the past several months have shown how hard it can be to turn around a federal bureaucracy that is massive, complex, deeply dysfunctional, and, as it says, understaffed.<\/p>\n

Now O\u2019Malley\u2019s time may be running out. <\/p>\n

Lang of Justice in Aging, among the advocacy groups that have been meeting with O\u2019Malley and other Social Security officials, said she appreciates how much the commissioner has achieved in a short time. But she added that O\u2019Malley has \u201cnot been interested in hearing about our feelings that things have fallen short.\u201d<\/p>\n

One long-standing policy O\u2019Malley set out to change involves the burden of proof. When the Social Security Administration alleges someone has been overpaid and demands the money back, the burden is on the beneficiary to prove they were not at fault.<\/p>\n

Cecilia Malone, 24, a beneficiary in Lithonia, Georgia, said she and her parents spent hundreds of hours trying to get errors corrected. \u201cWhy is the burden on us to \u2018prove\u2019 we weren\u2019t overpaid?\u201d Malone said.<\/p>\n

It can be exceedingly difficult for beneficiaries to appeal a decision. The alleged overpayments, which can reach tens of thousands of dollars or more, often span years. And people struggling just to survive may have extra difficulty producing financial records from long ago.<\/p>\n

What\u2019s more, in letters demanding repayment, the government does not typically spell out its case against the beneficiary \u2014 making it hard to mount a defense.<\/p>\n

Testifying before House and Senate committees in March, O\u2019Malley promised to shift the burden of proof.<\/p>\n

\u201cThat should be on the agency,\u201d he said.<\/p>\n

The agency expects to finalize \u201cguidance\u201d on the subject \u201cin the coming months,\u201d Hinkle said.<\/p>\n

The agency points to reduced wait times and other improvements in a phone system known to leave beneficiaries on hold. \u201cIn September, we answered calls to our national 800 number in an average of 11 minutes \u2014 a tremendous improvement from 42 minutes one year ago,\u201d Hinkle said.<\/p>\n

Still, in response to a nonrepresentative survey by KFF Health News and Cox Media Group focused on overpayments, about half of respondents who said they contacted the agency by phone since April rated that experience as \u201cpoor,\u201d and few rated it \u201cgood\u201d or \u201cexcellent.\u201d<\/p>\n

The survey was sent to about 600 people who had contacted KFF Health News to share their overpayment stories<\/a> since September 2023. Almost 200 people answered the survey in September and October of this year.<\/p>\n

Most of those who said they contacted the agency by mail since April rated their experience as \u201cpoor.\u201d<\/p>\n

Jennifer Campbell, 60, a beneficiary in Nelsonville, Ohio, said in late October that she was still waiting for someone at the agency to follow up as described during a phone call in May.<\/p>\n

\u201cVERY POOR customer service!!!!!\u201d Campbell wrote.<\/p>\n

\u201cNearly impossible to get a hold of someone,\u201d wrote Kathryn Duff of Colorado Springs, Colorado, who has been helping a disabled family member.<\/p>\n

Letters from SSA have left Duff mystified. One was postmarked July 9, 2024, but dated more than two years earlier. Another, dated Aug. 18, 2024, said her family member was overpaid $31,635.80 in benefits from the Supplemental Security Income program, which provides money to people with little or no income<\/a> or other resources who are disabled, blind, or at least 65. But Duff said her relative never received SSI benefits.<\/p>\n

What\u2019s more, for the dates in question, payments listed in the letter to back up the agency\u2019s math didn\u2019t come close to $31,635.80; they totaled about a quarter of that amount.<\/p>\n

Regarding the 100% clawbacks, O\u2019Malley in March said it\u2019s \u201cunconscionable that someone would find themselves facing homelessness or unable to pay bills, because Social Security withheld their entire payment for recovery of an overpayment.\u201d<\/p>\n

He said that, starting March 25, if a beneficiary doesn\u2019t respond to a new overpayment notice, the agency would default to withholding 10%. The agency warned of \u201ca short transition period.\u201d<\/p>\n

That change wasn\u2019t automated until June 25, Hinkle said.<\/p>\n

The number of people newly placed in full withholding plummeted from 6,771 in February to 51 in September, according to data the agency provided.<\/p>\n

SSA said it would notify recipients they could request reduced withholding if it was already clawing back more than 10% of their monthly checks.<\/p>\n

Nonetheless, dozens of beneficiaries or their family members told KFF Health News and Cox Media Group they hadn\u2019t heard they could request reduced withholding. Among those who did ask, roughly half said their requests were approved.<\/p>\n

According to the SSA, there has been almost a 20% decline in the number of people facing clawbacks of more than 10% but less than 100% of their monthly checks \u2014 from 141,316 as of March 8 to 114,950 as of Oct. 25, agency spokesperson Nicole Tiggemann said.<\/p>\n

Meanwhile, the number of people from whom the agency was withholding exactly 10% soared more than fortyfold \u2014 from just over 5,000 to well over 200,000. And the number of beneficiaries having any benefits withheld to recover an overpayment increased from almost 600,000 to almost 785,000, according to data Tiggemann provided.<\/p>\n

Lorraine Anne Davis, 72, of Houston, said she hasn\u2019t received her monthly Social Security payment since June due to an alleged overpayment. Her Medicare premium was being deducted from her monthly benefit, so she\u2019s been left to pay that out-of-pocket.<\/p>\n

Davis said she\u2019s going to need a kidney transplant and had been trying to save money for when she\u2019d be unable to work.<\/p>\n

A letter from the SSA dated April 8, 2024, two weeks after the new 10% withholding policy was slated to take effect, said it had overpaid her $13,538 and demanded she pay it back within 30 days.<\/p>\n

Apparently, the SSA hadn\u2019t accounted for a pension Davis receives from overseas; Davis said she disclosed it when she filed for benefits.<\/p>\n

In a letter to her dated June 29, the agency said that, under its new policy, it would change the withholding to only 10% if she asked.<\/p>\n

Davis said she asked by phone repeatedly, and to no avail.<\/p>\n

\u201cNobody seems to know what\u2019s going on\u201d and \u201cno one seems to be able to help you,\u201d Davis said. \u201cYou\u2019re just held captive.\u201d<\/p>\n

In October, the agency said she\u2019d receive a payment \u2014 in March 2025.<\/p>\n

Marley Presiado, a research assistant on the Public Opinion and Survey Research team at KFF, contributed to this report.<\/em><\/p>\n

Do you have an experience with Social Security overpayments you\u2019d like to share? Click here<\/a> to contact our reporting team.<\/em><\/p>\n

KFF Health News<\/a> is a national newsroom that produces in-depth journalism about health issues and is one of the core operating programs at KFF\u2014an independent source of health policy research, polling, and journalism. Learn more about KFF<\/a>.<\/p>\n

USE OUR CONTENT<\/h3>\n

This story can be republished for free (details<\/a>).<\/p>","protected":false},"excerpt":{"rendered":"

In March, newly installed Social Security chief Martin O\u2019Malley criticized agency \u201cinjustices\u201d that \u201cshock our shared sense of equity and good conscience as Americans.\u201d He promised to overhaul the Social Security Administration\u2019s often heavy-handed efforts to claw back money that millions of recipients \u2014 including people who are living in poverty, are elderly, or have…<\/p>\n","protected":false},"author":0,"featured_media":2005,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[2],"tags":[],"class_list":["post-2004","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-articles"],"_links":{"self":[{"href":"https:\/\/medical-article.com\/index.php?rest_route=\/wp\/v2\/posts\/2004"}],"collection":[{"href":"https:\/\/medical-article.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/medical-article.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"replies":[{"embeddable":true,"href":"https:\/\/medical-article.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=2004"}],"version-history":[{"count":0,"href":"https:\/\/medical-article.com\/index.php?rest_route=\/wp\/v2\/posts\/2004\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/medical-article.com\/index.php?rest_route=\/wp\/v2\/media\/2005"}],"wp:attachment":[{"href":"https:\/\/medical-article.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=2004"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/medical-article.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=2004"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/medical-article.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=2004"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}