Social Security’s overpayments policy takes effect today. Experts say it could hurt seniors.

The Social Security Administration’s new policy of clawing back overpayments from recipients has sparked concern among advocates for seniors. The policy, which involves taking 100% of a beneficiary’s monthly check until the overpayment is repaid, has the potential to cause financial hardship for many older Americans who rely on the program for a significant portion of their income.

The decision to increase the recovery rate from 10% to 100% was announced by SSA Acting Commissioner Lee Dudek, who has been working with Elon Musk’s Department of Government Efficiency to cut costs at the agency. This move has been met with criticism from advocacy groups, who argue that it will leave many beneficiaries without the necessary funds to cover essential expenses like food.

According to Dan Adcock, director of government relations and policy for the National Committee to Preserve Social Security and Medicare, the policy will be particularly burdensome for the 40% of beneficiaries who rely on Social Security for 90% or more of their income. Additionally, a report by the agency’s inspector general found that a significant number of overpayments were due to errors on the part of the SSA, highlighting the need for improved controls over benefit computation accuracy.

The Biden administration had previously capped the clawback rate at 10% due to concerns about the impact on recipients. However, the recent decision to revert back to the 100% rate has raised alarms among advocates and experts. They stress the importance of beneficiaries staying vigilant about their benefits and promptly reporting any changes to the SSA to avoid overpayments.

The closure of field offices and job cuts at the SSA have made it increasingly difficult for seniors to access assistance or report changes in their circumstances. This has led to long wait times and challenges for individuals trying to navigate the system. Efforts to reduce improper payments, which include both overpayments and underpayments, will require significant investment in technology and resources, according to experts.

In the meantime, beneficiaries are advised to closely monitor their benefits and report any discrepancies to the SSA. Those who receive a beneficiary letter can request a waiver through SSA form 632. Advocates emphasize the need for beneficiaries to have sufficient time to plan for repayment and avoid facing immediate reductions in their benefits.

Overall, the new policy on overpayments underscores the importance of ensuring accuracy and efficiency in the Social Security system to prevent financial hardship for vulnerable populations. It is crucial for the agency to strike a balance between recouping overpayments and supporting the financial stability of beneficiaries.