By David Hilzenrath and Jodie Fleischer, Cox Media Group
A 12 months in the past, a brand new head of Social Safety got down to cease the company from financially devastating most of the folks it was meant to assist.
The company had lengthy made it a observe to cut back or halt profit checks to recoup billions of {dollars} in funds it despatched recipients however later stated they by no means ought to have acquired.
Martin O’Malley, then the Social Safety Administration commissioner, introduced in March 2024 the company would now not lower off folks’s month-to-month old-age, survivors, and incapacity checks to recoup cash that they had allegedly been overpaid — a sample he referred to as “clawback cruelty.” As an alternative, it will default to withholding 10% of month-to-month advantages. The brand new coverage allowed individuals who already dwell on little to pay their hire and maintain meals on the desk.
Final Friday, the Trump administration reversed that coverage.
Starting March 27, to recuperate new overpayments, the Social Safety Administration will routinely withhold 100% of recipients’ month-to-month advantages, the company introduced.
The company stated it was performing within the curiosity of fiscal duty and that the reversal would save the federal government about $7 billion over a decade.
“It is our duty to revise the overpayment repayment policy back to full withholding, as it was during the Obama administration and first Trump administration, to properly safeguard taxpayer funds,” performing Commissioner Lee Dudek stated in a information launch.
Advocates for Social Safety beneficiaries described the motion as merciless and dangerous.
“The results are predictable: more unnecessary suffering,” stated Kathleen Romig, who labored on the Social Safety Administration below O’Malley and is now director of Social Safety and incapacity coverage on the Middle on Finances and Coverage Priorities.
(WSB-TV, Atlanta)
Kate Lang of the advocacy group Justice in Getting old stated she was heartbroken.
“Those who are most vulnerable, with the fewest resources, are the ones who will feel the harsh impacts of this change,” she stated. Many “are going to be unable to buy food or keep the roof over their head,” she stated.
In 2023, after an investigation by KFF Well being Information and Cox Media Group solid a highlight on overpayments and clawbacks, lawmakers from each events referred to as on the Social Safety Administration to vary its method.
The coverage change a 12 months in the past was impressed partially by the plight of individuals resembling Denise Woods, who was sleeping in her Chevy in Savannah, Georgia, in December 2023 whereas contending with lupus and congestive coronary heart failure after the federal government lower off her incapacity advantages. The federal government was demanding she repay nearly $58,000.
Many overpayments are the results of authorities error. It may well take the federal government years to determine it has been paying somebody an excessive amount of, and by then, the quantity the federal government says it’s owed can develop far past a beneficiary’s capability to repay. And it has usually demanded that recipients repay the total quantity inside 30 days.
As of October, the SSA was withholding at the least a portion of month-to-month profit funds from a whole lot of 1000’s of individuals, in keeping with information the SSA supplied final fall to KFF Well being Information and Cox Media Group. The company stated it was withholding as much as 10% from 669,903 folks to recoup an overpayment. Requested whether or not these numbers coated all forms of advantages administered by the SSA, the company’s press workplace didn’t say.
“Under Trump’s leadership, Social Security has reinstated a cruel policy of clawing back Social Security overpayments with no regard for an American’s ability to pay or whether the overpayment was an error by the agency,” stated Sen. Ron Wyden of Oregon, the highest Democrat on the Senate Finance Committee.
The brand new plan to fully withhold month-to-month advantages from recipients who had been allegedly overpaid doesn’t prolong to the Supplemental Safety Revenue program, one among two Social Safety packages for folks with disabilities. SSI, because the company explains, covers “people with disabilities and older adults who have little or no income or resources.”
The federal government’s estimate that chopping folks off fully will save $7 billion over a decade implies it expects many extra overpayments within the years forward.
The SSA’s March 7 announcement was a part of a broader dismantling of Biden-era insurance policies below President Donald Trump. It was additionally a part of a broader upheaval on the Social Safety Administration, which introduced in February that it will lower its employees from about 57,000 to 50,000.
In an interview Monday, O’Malley predicted that the general public will expertise for much longer wait instances making an attempt to get via to the company by telephone and longer waits for incapacity determinations.
Social Safety runs on a really previous laptop system, he stated, and driving folks out of the company who perceive it “can only result in system collapse.”
“The risk of totally shutting down the agency is greatly increased by people mucking around that don’t know what they’re doing,” O’Malley stated.
On the PBS NewsHour final week, he suggested recipients to save cash to arrange for an interruption of advantages.
Trump deputy Elon Musk has boasted of taking a chainsaw to the federal authorities and has referred to as Social Safety a Ponzi scheme. In a signed declaration filed in federal court docket final week, a not too long ago retired SSA official, Tiffany Flick, stated she “witnessed a disregard for critical processes” as members of DOGE — the Division of Authorities Effectivity, which Trump established by govt order — demanded entry to delicate Social Safety programs, together with information that comprise beneficiaries’ banking data.
New administration on the SSA referred to as its workforce “bloated.” However, below the earlier administration, the company was telling a starkly totally different story.
A 12 months in the past, O’Malley instructed lawmakers that, because the variety of folks receiving advantages elevated, “historic underfunding and understaffing” on the company had created a “service delivery crisis.”
Late final 12 months, the company supplied information to KFF Well being Information displaying that in September its workforce was close to a 50-year low. As of final month, candidates for incapacity advantages had been ready a mean of greater than seven months for a choice, in keeping with the SSA web site.
The staffing cuts will result in extra overpayments than ever and can make it more durable for the folks affected to clear up errors, stated Jen Burdick, an lawyer at Group Authorized Companies of Philadelphia.
As KFF Well being Information and Cox Media Group revealed in 2023, about 2 million folks a 12 months had been receiving notices from the SSA that they had been overpaid and owed a refund.
Individuals can enchantment overpayment notices, request a decrease withholding fee, or ask the SSA to waive assortment altogether, the company stated. The SSA doesn’t pursue recoveries whereas an preliminary enchantment or waiver request is pending, it stated.
Shortly earlier than O’Malley left the SSA in November, the company carried out adjustments that made it simpler for beneficiaries to get overpayments waived. The company spelled out grounds for figuring out the beneficiary was not at fault — for example, if the company continued to concern overpayments after the beneficiary reported a change of their monetary circumstances that ought to have led to a discount in advantages. These coverage adjustments stay intact.
A number of Republicans who expressed concern about clawbacks within the aftermath of 2023 information protection didn’t reply to inquiries for this text or declined to remark. One in every of them was Sen. Rick Scott (R-Fla.), who’s now chair of the Senate’s Particular Committee on Getting old.
“Hardworking American taxpayers pay into Social Security all of their lives so that they can depend on it in the time they need it most,” Scott stated in a 2023 letter to the company. “The fact that the SSA’s actions are leaving some of them worse off, through no fault of their own, is absolutely unacceptable.”
Do you may have an expertise with Social Safety overpayments you’d wish to share? Click on right here to contact our reporting crew.
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