CNS News– As Millions of Seniors get huge bills from the Social Security Administration’s blunders, pressure is mounting to address it. They urged the SSA to change the system, which leaves seniors in debt for tens or hundreds of thousands of dollars. Seniors are struggling to pay their expenses due to overpayment difficulties, according to a letter from Senators Gary Peters and Debbie Stabenow (Michigan).
“We have heard from numerous Michiganders regarding the impact unexpected overpayments that were sent by the SSA have caused on some of the most vulnerable beneficiaries of Social Security, who often include the elderly, disabled, retirees, and many who struggle to get by on limited income and resources,” said the letter.
Peters and Stabenow ask the SSA to fix overpayment issues and prevent future ones in their letter. “Overpayments can pose incredibly difficult hardships on beneficiaries who’ve committed no wrongdoing and are now responsible for repaying improper payments,” senators wrote.
“Because of their devastating impact, it is critical for the agency to improve its processes and controls to reduce the number of overpayments for beneficiaries who rely on these critical benefits.” Thirteen On Your Side reported overpayment payments of $37,000 to $100,000 or more for seniors, disabled persons, and fixed-income people.
After the SSA realizes its mistake, seniors who were overpaid must pay back the checks or stop receiving benefits until the sum is repaid. Due to increased overpayment errors, the SSA paid out over $11 billion in Social Security overpayments in 2022. 13 On Your Side reports over 2 million overpayments annually. By the time the mistake is discovered, overpayments have piled to an amount the receiver cannot repay.
“Each person’s situation is unique, and the agency handles overpayments on a case-by-case basis,” the SSA said last season. Persons who disagree with being overpaid or believe the amount is wrong can appeal. People can ask the agency to waive overpayment collection if they don’t think they should pay. Waiver filing is unlimited.” True Tamplin, founder of Finance Strategists, said the senators’ letter could pressure the SSA to avert overpayment costs.
“The letter from U.S. senators should add pressure on the SSA to tackle the overpayment issue,” Tamplin noted. “It shows that there’s political will to address the problem and that it’s on the radar of those who can push for changes.” Mike Ryan, a finance expert who founded michaelryanmoney.com, says overpayments can occur when the SSA miscalculates benefits or recipients don’t record income or household changes.
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First, don’t panic if you owe money, Ryan said Newsweek. “While the amounts can seem daunting, there are options to resolve the debt or establish affordable repayment plans.” He noted that on a budgetary timeframe, SSA obligations can be paid off. The SSA may waive your debt if repayment would be difficult and you are not at fault. “Submitting debt waiver requests quickly is critical,” Ryan noted.
There are alternatives to avoid bankruptcy for those unable to manage their SSA debts, Ryan added. “The best way to avoid SSA overpayments is through monitoring of your status as a beneficiary,” Ryan noted. By verifying your earnings records annually and reporting changes in dependents or income, you can avoid overpayment.