In March, newly put in Social Safety chief Martin O’Malley criticized company “injustices” that “shock our shared sense of equity and good conscience as Americans.”
He promised to overtake the Social Safety Administration’s typically heavy-handed efforts to claw again cash that tens of millions of recipients — together with people who find themselves residing in poverty, are aged, or have disabilities — have been allegedly overpaid, as described by a KFF Well being Information and Cox Media Group investigation final yr.
“Innocent people can be badly hurt,” O’Malley stated on the time.
Practically eight months since he appeared earlier than Congress and introduced a sequence of coverage adjustments, and with two months left in his time period, O’Malley’s effort to repair the system has made inroads however stays a piece in progress.
For example, one change, transferring away from withholding 100% of individuals’s month-to-month Social Safety advantages to recuperate alleged overpayments, has been a significant enchancment, say advocates for beneficiaries.
“It is a tremendous change,” stated Kate Lang of Justice in Getting old, who referred to as it “life-changing for many people.”
The variety of folks from whom the Social Safety Administration was withholding full month-to-month advantages to recoup cash declined sharply — from about 46,000 in January to about 7,000 in September, the company stated.
Requested to make clear whether or not these numbers and others supplied for this text lined all packages administered by the company, the SSA press workplace didn’t reply.
One other doubtlessly vital change — relieving beneficiaries of getting to show that an overpayment was not their fault — has not been applied. The company stated it’s engaged on that.
In the meantime, the company appears to be seeking to Congress to take the lead on a change some observers see as essential: limiting how far again the federal government can attain to recuperate an alleged overpayment.
Barbara Hubbell of Watkins Glen, New York, referred to as the absence of a statute of limitations “despicable.” Hubbell stated her mom was held responsible for $43,000 due to an SSA error going again 19 years.
“In what universe is that even legal?” Hubbell stated. Paying down the overpayment stability left her mom “essentially penniless,” she added.
In response to questions for this text, Social Safety spokesperson Mark Hinkle stated laws is “the best and fastest way” to set a time restrict.
Establishing a statute of limitations was not among the many coverage adjustments O’Malley introduced in his March congressional testimony. In an interview on the time, he stated he anticipated an announcement on it “within the next couple few months.” It may most likely be finished by regulation, with out an act of Congress, he stated.
Talking typically, Hinkle stated the company has “made substantial progress on overpayments,” lowering the hardship they trigger, and “continues to work diligently” to replace insurance policies.
The company is underfunded, he added, is at a close to 50-year low in staffing, and will do higher with extra staff. The SSA didn’t reply to requests for an interview with O’Malley.
O’Malley introduced the coverage adjustments after KFF Well being Information and Cox Media Group collectively printed and broadcast investigative reporting on the injury overpayments and clawbacks have finished to tens of millions of beneficiaries.
When O’Malley, a former Democratic governor of Maryland, introduced his plans to a few congressional committees in March, lawmakers greeted him with uncommon bipartisan reward. However the previous a number of months have proven how onerous it may be to show round a federal forms that’s huge, advanced, deeply dysfunctional, and, because it says, understaffed.
Now O’Malley’s time could also be working out.
Lang of Justice in Getting old, among the many advocacy teams which were assembly with O’Malley and different Social Safety officers, stated she appreciates how a lot the commissioner has achieved in a short while. However she added that O’Malley has “not been interested in hearing about our feelings that things have fallen short.”
One long-standing coverage O’Malley got down to change entails the burden of proof. When the Social Safety Administration alleges somebody has been overpaid and calls for the cash again, the burden is on the beneficiary to show they weren’t at fault.
Cecilia Malone, 24, a beneficiary in Lithonia, Georgia, stated she and her mother and father spent lots of of hours making an attempt to get errors corrected. “Why is the burden on us to ‘prove’ we weren’t overpaid?” Malone stated.
It may be exceedingly tough for beneficiaries to attraction a call. The alleged overpayments, which may attain tens of 1000’s of {dollars} or extra, typically span years. And other people struggling simply to outlive could have further problem producing monetary data from way back.
What’s extra, in letters demanding reimbursement, the federal government doesn’t sometimes spell out its case in opposition to the beneficiary — making it onerous to mount a protection.
Testifying earlier than Home and Senate committees in March, O’Malley promised to shift the burden of proof.
“That should be on the agency,” he stated.
The company expects to finalize “guidance” on the topic “in the coming months,” Hinkle stated.
The company factors to decreased wait occasions and different enhancements in a telephone system identified to go away beneficiaries on maintain. “In September, we answered calls to our national 800 number in an average of 11 minutes — a tremendous improvement from 42 minutes one year ago,” Hinkle stated.
Nonetheless, in response to a nonrepresentative survey by KFF Well being Information and Cox Media Group targeted on overpayments, about half of respondents who stated they contacted the company by telephone since April rated that have as “poor,” and few rated it “good” or “excellent.”
The survey was despatched to about 600 individuals who had contacted KFF Well being Information to share their overpayment tales since September 2023. Virtually 200 folks answered the survey in September and October of this yr.
Most of those that stated they contacted the company by mail since April rated their expertise as “poor.”
Jennifer Campbell, 60, a beneficiary in Nelsonville, Ohio, stated in late October that she was nonetheless ready for somebody on the company to comply with up as described throughout a telephone name in Could.
“VERY POOR customer service!!!!!” Campbell wrote.
“Nearly impossible to get a hold of someone,” wrote Kathryn Duff of Colorado Springs, Colorado, who has been serving to a disabled member of the family.
Letters from SSA have left Duff mystified. One was postmarked July 9, 2024, however dated greater than two years earlier. One other, dated Aug. 18, 2024, stated her member of the family was overpaid $31,635.80 in advantages from the Supplemental Safety Revenue program, which supplies cash to folks with little or no revenue or different sources who’re disabled, blind, or at the least 65. However Duff stated her relative by no means obtained SSI advantages.
What’s extra, for the dates in query, funds listed within the letter to again up the company’s math didn’t come near $31,635.80; they totaled a couple of quarter of that quantity.
Concerning the 100% clawbacks, O’Malley in March stated it’s “unconscionable that someone would find themselves facing homelessness or unable to pay bills, because Social Security withheld their entire payment for recovery of an overpayment.”
He stated that, beginning March 25, if a beneficiary doesn’t reply to a brand new overpayment discover, the company would default to withholding 10%. The company warned of “a short transition period.”
That change wasn’t automated till June 25, Hinkle stated.
The variety of folks newly positioned in full withholding plummeted from 6,771 in February to 51 in September, in accordance with information the company supplied.
SSA stated it will notify recipients they may request decreased withholding if it was already clawing again greater than 10% of their month-to-month checks.
Nonetheless, dozens of beneficiaries or their members of the family instructed KFF Well being Information and Cox Media Group they hadn’t heard they may request decreased withholding. Amongst those that did ask, roughly half stated their requests have been accepted.
Based on the SSA, there was virtually a 20% decline within the variety of folks dealing with clawbacks of greater than 10% however lower than 100% of their month-to-month checks — from 141,316 as of March 8 to 114,950 as of Oct. 25, company spokesperson Nicole Tiggemann stated.
In the meantime, the variety of folks from whom the company was withholding precisely 10% soared greater than fortyfold — from simply over 5,000 to properly over 200,000. And the variety of beneficiaries having any advantages withheld to recuperate an overpayment elevated from virtually 600,000 to virtually 785,000, in accordance with information Tiggemann supplied.
Lorraine Anne Davis, 72, of Houston, stated she hasn’t obtained her month-to-month Social Safety cost since June as a result of an alleged overpayment. Her Medicare premium was being deducted from her month-to-month profit, so she’s been left to pay that out-of-pocket.
Davis stated she’s going to wish a kidney transplant and had been making an attempt to save cash for when she’d be unable to work.
A letter from the SSA dated April 8, 2024, two weeks after the brand new 10% withholding coverage was slated to take impact, stated it had overpaid her $13,538 and demanded she pay it again inside 30 days.
Apparently, the SSA hadn’t accounted for a pension Davis receives from abroad; Davis stated she disclosed it when she filed for advantages.
In a letter to her dated June 29, the company stated that, beneath its new coverage, it will change the withholding to solely 10% if she requested.
Davis stated she requested by telephone repeatedly, and to no avail.
“Nobody seems to know what’s going on” and “no one seems to be able to help you,” Davis stated. “You’re just held captive.”
In October, the company stated she’d obtain a cost — in March 2025.
Marley Presiado, a analysis assistant on the Public Opinion and Survey Analysis group at KFF, contributed to this report.
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