An attempt in Congress to put a time limit on how far back Social Security overpayments can be recouped could help millions of recipients who have been asked for large sums by the federal agency.
Representative Ruben Gallego of Arizona, a Democrat, and Representative Garret Graves of Louisiana, a Republican, introduced a bipartisan bill which would limit the Social Security Administration’s (SSA) overpayment lookback period to 10 years.
The move will introduce a limit to the SSA’s overpayment lookback period for the first time, as currently the agency can look back decades to fix errors made when sending benefits to recipients. This has resulted in some beneficiaries being asked to pay back thousands of dollars within a limited time frame—a sum they’re in some cases unable to repay, especially on such short notice.
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After a recent investigation by the Cox Media Group and KFF Health News revealed that millions of Americans—many of them on disability—had been asked by the SSA to repay billions of dollars in overpayments, the federal agency has come under scrutiny for its controversial practice, triggering criticism in Congress and leading to an investigation by the SSA.
Earlier this month, the agency said it has demanded money back from more than 2 million people a year—many more than initially declared during a congressional hearing in October.
According to data by the SSA’s inspector general shared by the news agencies, the SSA received a total of $4.7 billion in overpayments in the 2022 fiscal year, while $21.6 billion remains outstanding. The agency claims back this money by reducing or stopping monthly benefit payments, intercepting federal tax refunds, or seizing wages.
Several lawmakers have called for more scrutiny of the agency’s overpayment practices, while others have called for the SSA to stop seeking overpayments altogether. The Senate Finance Committee, which oversees Social Security, said earlier this month that it will meet with the SSA every month to address its attempt to claw back millions in overpayment from recipients.
Newsweek contacted the SSA and Gallego’s office for comment by email on Thursday and Graves’ office by phone but did not receive an immediate response.
The bill introduced by Gallego and Graves would be a first step to prevent beneficiaries who have received more money that they should have because of a possible error made by the agency being asked to pay huge sums back.
“Arizona seniors should not be on the hook for decades-long failures of the Social Security Administration,” said Gallego in a news release announcing the introduction of the bill. “That’s why I’m introducing this commonsense, bipartisan legislation to protect our seniors from unfair claw-backs to their much-needed Social Security payments.”
“Social Security is supposed to be a safety net, not a trap. Beneficiaries shouldn’t have to shoulder the financial burden of the federal government’s errors and inefficiencies,” said Graves. “This legislation protects our seniors from unfair and unexpected claw backs of Social Security payments and holds the bureaucracy accountable for their mistakes.”
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Newsweek is committed to challenging conventional wisdom and finding connections in the search for common ground.