The Senate Finance Committee is putting new pressure on the Social Security Administration (SSA) to rectify the agency's $23 billion overpayment issue.
The move follows KFF Health News and Cox Media Group's investigative report on the agency's mistaken overpayments to beneficiaries that SSA is now trying to take back.
Committee Chair Ron Wyden (D-OR), has vowed to meet with the administration every month until the problem "is fixed." Until then, the committee "is going to watchdog Social Security's overpayment program," he said.
Sign up for Kiplinger’s Free E-Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
Wyden announced the monthly meeting plan during a committee markup of the nomination of former Maryland Gov. Martin O'Malley to head SSA.
The Senate is expected to vote on O'Malley's nomination tonight (December 18).
During his confirmation hearing before the Senate, O'Malley vowed to prioritize the department’s "customer service crisis."
Part of the issue lies in the SSA being an understaffed organization. “The truth is, today, the Social Security Administration is serving a 50 percent increase in beneficiary customers with the same levels of staffing they had in 1995,” he said during the Senate Finance Committee hearing to consider his nomination.
In October, SSA Acting Commissioner Kilolo Kijakazi testified during a House of Representatives Social Security Subcommittee hearing that overpayments can occur given the number of people served, frequent changes in their circumstances and the complexity of the SSA programs. She also said that many of SSA's systems — including benefit and program payment as well as notice technology — are old and have had to be retrofitted as its programs evolved.
Kijakazi told the lawmakers that the SSA is working on improvements including the simplification of waiver request forms to make it easier and less burdensome for people to use. The agency is also integrating and refining an electronic wage data system, known as the Payroll Information Exchange, which will allow SSA to quickly access wage and employment data from a payroll data provider for people who authorize it.
Kijakazi also reiterated that people can appeal an SSA request for repayment and request that the agency waive collection of the overpayment. There’s no time limit for filing a waiver, she said.
According to KFF’s newest report, overpayment notices have been sent to more than two million people per year, which informs them of the amount of money they owe – and typically that they have 30 days to pay it.
RELATED CONTENT
-
Colorado Sending Billions in TABOR RefundsState Tax Are you receiving a TABOR refund with your 2025 Colorado state income tax filing? Don’t miss the deadline.
-
How a Financial Adviser Can Help You Sleep at NightWhen it comes to your money and planning for your retirement, legacy and more, you might need a professional to help you stay on top of it all.
-
New List Out On Medicare Part B Drugs Eligible for RebatesSome Medicare beneficiaries may pay lower coinsurance rates from April 1 to June 30 for the drugs, HHS says.
-
Lawmakers: Nix Social Security Offsets For Seniors In Student Loan DefaultOffsetting Social Security benefits to pay for defaulted student loans can be devastating for some beneficiaries, lawmakers say.
-
HHS Funding Secured As Major Government Shutdown AvoidedWith passage of the fiscal 2024 appropriations package, Medicare and Social Security are among the key agencies to receive funding through September 30.
-
Social Security Chief Testifies in Senate About Plans to Stop ‘Clawback Cruelty’Social Security plans to default to withholding 10% (not all) of the recipient's monthly benefits to recoup debt, SSA head says.
-
Medicare Advantage Open Enrollment Ends March 31Medicare Advantage enrollees have until March 31 to change plans. Here's what to know.
-
Social Security Chief Vows to Fix ‘Cruel-Hearted’ Overpayment ClawbacksCapping Social Security clawbacks at 10% for some beneficiaries is among the changes that O'Malley plans to propose.
-
Biden's Budget Rejects Any Cuts To Social Security and MedicareThe president's $7.3 trillion budget seeks to expand programs including some drug provisions under the Inflation Reduction Act.
-
Nearly Half of Americans Failed This Social Security Quiz About RetirementHow many of these questions on retirement benefits do you know?
