WPXI, a television station in Pittsburgh, has been covering Social Security's overpayment problems. Here's some excerpts from a recent story they've run:
... We sat down with the new Commissioner of the Social Security Administration, Martin O’Malley. ...
One of the most significant changes went into effect last Monday. It ensures anyone facing a new overpayment has at most,10 percent of their check withheld to recoup overpayment debt, not the 100-percent claw back the agency had been using; however, for the millions of people already facing overpayments, it’s not automatic. Due to staffing challenges, the solution is for beneficiaries to request a waiver or an adjustment by calling 1-800-772-1213. ...
11 Investigates decided to try that 1-800 number. The wait time when we called it was ‘greater than 60 minutes.’ We didn’t clog up the line by waiting to talk to a representative, but we did notice you can now request a call back instead of waiting on hold. ...
Commissioner O’Malley says you can file a waiver as many times as you want. If a beneficiary requests a rate lower than 10 percent to be withheld to recoup overpayment debt, it will be approved if the money can be repaid within 60 months or five years. ...
I had not heard about a call back feature for Social Security's 800 number. That might be an improvement. What experiences are others having with this?
My guess is that the reporter misunderstood O'Malley or that the Commissioner misspoke about filing waiver requests as often as one likes. That requires clarification.
7 comments:
Technically you can file a new waiver "as much as you want" but Res Judicata would most likely apply unless new facts are presented.
Technically one can file a waiver as many times as they like. Depending on the details on the waiver, it may be reprocessed if additional (new and material) evidence is submitted or it could be found res judicata.
If the reporter did not misunderstand, then O'Malley was either being disingenuous or (more likely) was showing a basic lack of knowledge about SSA's waiver process.
It is true that a person can in fact file a waiver request on the same overpayment as many times as they want to, subject to the rules of administrative finality.
However, if the new waiver request doesn't submit any new facts or evidence that would changed the original decision related to fault in causing the overpayment, res judicata applies to the new waiver request and it is dismissed with no appeal rights.
In the event where a waiver was denied solely based upon financial factors (i.e. where the overpaid person(s) originally couldn't show hardship to repay, or that recovery would either defeat the purpose or that recovery was against equity and good conscience) but now that situation has changed, then the agency will process a new waiver request even after having denied the prior one.
As far as the "call back" feature, I remember this was in place several years ago in the midst of the pandemic, but then it went away. if they've brought it back that's great.
To put it in context, 10% of the median SS monthly benefit is $190.70. Multiply that by 60, and that means people with facing an overpayment of approximately $11,442 or less should be eligible for the 10% withholding. Obviously, that varies based on the individual, just talking about median. I'm not aware of SSA publishing figures as to median overpayments, so unclear how many this would impact. Also, I imagine beneficiaries who don't qualify could in the short-term have their benefits withheld, and seek the 10% withholding once their overpayment is reduced sufficient to qualify.
@124pm: Check out SSA's recent blog post on the policy change: https://blog.ssa.gov/social-security-eliminates-overpayment-burden-for-social-security-beneficiaries-automatic-overpayment-recovery-rate-reduced-to-10-percent/
As long as the overpayment wasn't a result of fraud, etc, the default OASDI withholding rate is going to be 10% of the monthly benefit, regardless of the overpayment amount or the length of time for recovery. Even if a person with a $1907/month benefit is overpaid $60,000, SSA will withhold only 10% ($190) from their benefit each month, even if it'll take 25+ years to repay at that rate.
The 60 month rule comes into play if a person requests a rate of withholding lower than the 10% default. So if the $1907/month beneficiary requests that $50/month be withheld (rather than $190), SSA will consider their request using the 60 month rule. If overpayment would be repaid at the requested rate within 60 months, SSA will generally approve. If it would take 60+ months, the beneficiary will first have to provide info about their income, resources, and expenses for SSA's consideration before SSA will approve that lower rate.
And do not forget two other ways to get a lower amount. One easy if qualify and one not so much.
Any person who gets gets a subsidy (LIS) on their Medicare Part D can get a $10 payment. YES $10. See GN 02210.030 (C) Exception. (and no other development needed).
Or fill out the SSA 634 and show why can only pay a lesser amount with detailed income and expenditure documentation. Decision on requesting a different rate of repayment is NOT APPEALBLE.
Denial of a WAIVER is appealable.
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