Calls for Social Security investigation after stimulus check payment ‘error’.
Senators Demand Answers from Social Security Administration Over Repayment Requests
Several U.S. senators are seeking answers from the Social Security Administration (SSA) after the agency sent out repayment requests to recipients who also received COVID-19 stimulus payments.
Over the past week, numerous regional media outlets have reported that Social Security recipients have received notices from the agency demanding repayment.
One disabled woman in the Pittsburgh area, who receives Social Security payments, received $3,200 in stimulus checks since 2020. However, the SSA has now frozen her monthly payments and is demanding thousands of dollars be returned, according to her father, Dave Greune.
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“I just assumed since the government put the money in, they would understand that she’s going to have extra money,” said Mr. Greune. He added that the agency initially demanded over $7,000 in repayment but later revised the amount.
“They’re still after me,” Mr. Greune said. “Like, every month, they send another letter. Did you forget? You still owe us $6,000.”
In a separate incident, Jo Vaughn, a disabled 63-year-old in New Mexico, received $3,200 in federal COVID-19 stimulus checks. In August 2023, she received a letter stating that she needed to repay the government $14,026, as reported by KFF News. Her Social Security checks have also stopped coming since August.
Senators Send Letter
These reports have prompted Sens. Ron Wyden (D-Ore.), Sherrod Brown (D-Ohio), and Bob Casey (D-Pa.) to send a letter to the SSA’s acting commissioner, Kilolo Kijakazi, regarding the repayment notices.
“We are deeply concerned that beneficiaries are receiving overpayment notices in error, because SSA is not following its own determination to exclude the stimulus payments from countable resources,” the senators wrote. They emphasized the negative impact of benefit suspensions and overpayment notices on the lives of recipients, as well as the lengthy bureaucratic process to restore eligibility and the risk to their access to Medicare or Medicaid.
According to SSA rules, COVID-19 stimulus payments should not count against the asset limit. However, individuals have reported receiving overpayments and being required to repay them.
“These payments were disregarded as income for SSI recipients and as countable resources for 12 months,” the senators explained. “In August 2021, SSA reversed its ruling and determined that EIPs would not be counted toward eligibility and payment amount for SSI purposes indefinitely.”
Advocates have reported that the SSA “suspended benefits and assessed overpayments to individuals receiving SSI benefits because of the stimulus payments.” The senators are demanding a response from the SSA within 30 days.
Changes?
SSA’s acting commissioner, Kilolo Kijakazi, recently announced that the agency would review its overpayment policies and procedures to improve customer service. However, she did not specifically mention overpayment requests related to stimulus checks.
“Despite our high accuracy rates, I am putting together a team to review our overpayment policies and procedures to further improve how we serve our customers,” said Ms. Kijakazi.
During a House Ways and Means hearing, Ms. Kijakazi stated that SSA workers will strive to pay the correct amount to the right person at the right time.
Aside from stimulus check-related requests, the SSA has also sent letters demanding repayment from recipients who were overpaid on their monthly benefits.
“Social Security is required by law to adjust benefits or recover debts when we establish that someone received payments to which they are not entitled and an overpayment occurs,” explained an agency spokesperson. “We must maintain our responsibilities to taxpayers to be good stewards of the trust funds.”
The spokesperson clarified that fewer than 0.5 percent of Social Security payments are overpayments and that each case is handled individually. They acknowledged that overpayments can happen due to various reasons, such as failure to report changes in circumstances.
A report from the SSA’s inspector general revealed that mistakes in computing or obtaining information can lead to overpayments or underpayments. In one instance, the agency underpaid approximately 14,470 beneficiaries around $59.5 million due to incorrect student information input.
The Epoch Times has reached out to the SSA for comment on the senators’ letter.
Se of these COVID-19 stimulus payments,” the senators continued in their letter. “In some cases, individuals have received notices asking for repayment of thousands of dollars, causing undue financial hardship.”
In what ways can the PAA (Payment Accuracy Act) be enhanced to minimize the occurrence of repayment demands for COVID-19 stimulus payments and alleviate the resulting financial burdens on affected individuals
There are several ways in which the Payment Accuracy Act (PAA) can be enhanced to minimize repayment demands for COVID-19 stimulus payments and alleviate the resulting financial burdens on affected individuals:
1. Streamline Eligibility Criteria: The PAA can be revised to ensure that stimulus payments are distributed only to eligible individuals. This could include implementing stricter income verification measures or incorporating more accurate data sources to determine eligibility.
2. Improve Communication and Education: Enhancing public outreach and education efforts can help individuals better understand their eligibility for stimulus payments and any potential repayment requirements. Clear communication through various channels can minimize confusion and prevent incorrect claims.
3. Implement Real-time Monitoring: Setting up a system for real-time monitoring of stimulus payments can help identify errors or inaccuracies quickly. This can enable prompt corrective action to be taken, minimizing the number of individuals who receive erroneous payments and reducing the need for repayment demands later.
4. Offer Flexibility in Repayment: If repayment demands are necessary, providing flexible repayment options can help alleviate the financial burdens on affected individuals. This could include setting up reasonable installment plans or offering options for individuals to apply for waivers or exemptions based on their specific circumstances.
5. Strengthen Fraud Detection Measures: Implementing robust fraud detection measures within the PAA can help identify and prevent fraudulent claims, reducing the need for repayment demands in the first place. This may involve leveraging advanced data analytics, machine learning, or artificial intelligence to identify suspicious patterns or discrepancies.
6. Establish Appeals and Dispute Resolution Mechanisms: Introducing a fair and efficient appeals process for individuals who receive repayment demands can help address any mistakes or errors in their specific cases. This would allow affected individuals to present their case and potentially have repayment demands overturned or adjusted.
7. Encourage Collaboration with Financial Institutions: Collaborating with financial institutions, such as banks and credit unions, can help streamline the distribution of stimulus payments and minimize errors. Leveraging their expertise and infrastructure can enhance accuracy and reduce the occurrence of repayment demands.
8. Continual Evaluation and Improvement: Regularly assessing the effectiveness of the PAA and its impact on repayment demands is crucial. This evaluation should identify areas for improvement, including technological advancements, policy updates, and additional safeguards to minimize repayment demands and alleviate financial burdens on affected individuals.
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