An End to “Claw Backs” of Overpayments

Good news this week from the Social Security Administration (SSA) for customers who have received notice of an overpayment of benefits (like our client, Mariela*). Commissioner Martin O’Malley announced that SSA will no longer “claw back” 100% of person’s Social Security Disability Insurance (SSDI) or retirement monthly benefits if they do not respond to a repayment notice. Instead, SSA will use a “much more reasonable” withholding rate of 10%–which is the rate it uses for Supplemental Security Income (SSI) beneficiaries.

Amy Marinacci, Senior Attorney at Legal Council of Health Justice, who has been working with a national coalition of advocates to make recommendations to the new Commissioner, applauded the change. “People on SSI have always been limited to collection of no more than 10% of the SSI check amount, but now SSA is extending this income protection to all beneficiaries. They will no longer suffer through several months of no income as they address their alleged overpayment.”

Additionally, the Commissioner said he plans to change policies and procedures in upcoming months so that recipients will no longer have to prove that they were not at fault in causing the overpayment. “We should have to produce that reason, not them,” O’Malley said. He noted that beneficiaries who ask to establish repayment plans have up to 60 months, rather than the prior 36-month limit, to pay back money they owe. Finally, he indicated that beneficiaries will have an easier time request a waiver, so that they do not have to pay back money if they are not at fault or do not have the money.

In 2023, Legal Council worked on over 550 cases relating to Social Security claims, and our advocates see first hand how difficult it is for individuals to receive the support they are entitled to from the government. We commend this positive change and look forward to advocating for additional improvements to the program.