The Social Security Administration announced Wednesday that it will review its overpayment procedures and policies and potentially reverse any overpayments it finds.
The agency recovered $4.7 billion in overpayments in fiscal year 2022, according to one document. report By SSA’s Office of Inspector General.
Although payment accuracy rates are high, overpayments do occur given the number of people the agency serves, the number of changes in status, and the complexity of the program, SSA said.
“Despite the high level of accuracy, we are assembling a team to review our overpayment policies and procedures to further improve our service to our customers,” said Acting Social Security Secretary Kiroro Kijakazi.
“There is false information in the media that the Social Security Administration is trying to collect $21 billion. This number is derived from the total amount of overpayments that have occurred over the history of the program.” SSA said in a statement.
The announcement comes one week before the Social Security Cost of Living Adjustment (COLA) is scheduled to be released.
According to estimates by the Federation for the Elderly, a pro-senior think tank, Social Security COLAs are expected to rise by about 3.2% in 2024. By comparison, the 8.7% increase in 2023 was the highest her COLA in over 40 years amid high inflation.
Social Security is an important benefit for most Americans. Half of the population age 65 and older lives in households that receive at least 50% of their household income from Social Security benefits. According to SSA dataapproximately 25% of elderly households rely on Social Security benefits for at least 90% of their income.
“The government has to get this right,” Sen. Sherrod Brown, D-Ohio, who chairs the Senate committee that oversees Social Security, said recently. KFF Health News Regarding overpayments. Meanwhile, Rep. Mike Carey of Ohio, the No. 2 Republican on the House committee with jurisdiction over Social Security, has called for a Congressional hearing to revisit the issue, KFF Health News reports. .
Social Security pays $1.4 trillion in benefits to more than 71 million people each year. According to the SSA, only about 0.5% of Social Security payments are overpaid.
“In the case of Supplemental Security Income (SSI) programs, overpayments represent a small percentage of payments (approximately 8%), but they are high due to statutory income, resource limitations, and the complexity of managing asset valuations. ,” the authorities said in a statement.
If you don’t agree that you’ve been overpaid, or if you think the amount is incorrect, you can dispute it. If you don’t think you need to pay back the money, you can request the authorities to waive collection of the overpayment. There is no deadline for applying for exemption.
The SSA said it is required by law to adjust benefits and recover debts if overpayments occur. The law allows Social Security to waive recovery in some cases.
