Posted May 9, 2024

 

 

Congresswoman Yadira Caraveo, MD (CO-08) and Congressman Colin Allred (TX-32) on May 7, introduced the Social Security Overpayment Fairness Act in an effort to protect American seniors from facing financial hardship due to incidental Social Security benefit overpayments.

 

About 66 million Americans receive some form of Social Security benefits. In Colorado, there are over 939,000 Social Security recipients who receive $1.6 billion in monthly benefits. However, over 2 million Americans are affected by Social Security overpayments each year, which occurs when a beneficiary receives more money than they should have received in a given month.

 

“While the Social Security Administration is required by law to attempt to recover overpayments, Colorado’s seniors are being negatively impacted by overpayment notices that aren’t always their fault,” said Congresswoman Yadira Caraveo, MD (CO-08). “My office has seen devastating overpayment issues, such as constituents being told they are over the gainful employment threshold when they clearly aren’t, yet they’re still compelled to repay a large sum of money. I’m proud to work with my colleague Rep. Allred to introduce the Social Security Overpayment Fairness Act, which will address this issue head-on by extending collection periods and establishing a clear process for beneficiaries to challenge wrongful overpayment notices.”

 

“Social Security helps thousands of North Texans live with dignity and security,” said Congressman Colin Allred (TX-32). “Despite this, overpayments can cause so many headaches for North Texans. This is unacceptable, and it’s why I am proud to join Congresswoman Caraveo in introducing the Social Security Overpayment Fairness Act. This will provide flexibility and extend the time beneficiaries have before they have to repay overpayments and their benefits are intercepted by the Social Security Administration.”

 

The Social Security Overpayment Fairness Act would ensure that Americans affected by overpayments are given adequate time to assess their options to address the overpayment, while developing a broader strategy to prevent Americans from getting hit with overpayments, helping Americans currently experiencing an overpayment, and creating a more fair recovery process.

 

Specifically, the Social Security Overpayment Fairness Act would:

 

Extend the period before collection begins from 30 days to 120 days, allowing for individuals impacted by overpayments to have more time to understand their overpayment notice, speak to a representative from the Social Security Administration, apply for the relevant waivers, or develop a payment plan for their overpayment

 

Create a strategy relating to the recovery of overpayments, including improving the process of reviewing changes in information reported by beneficiaries, expanding efforts to limit discrepancies in accuracy from beneficiaries self-reporting information, improving efforts to prevent and track overpayments to beneficiaries, ensuring due process is followed in recovering overpayments, improving oral and written communication between the Social Security Administration and beneficiaries, and proposing fair and reasonable benefit withholding amounts.

 

This bill would address Social Security overpayments through immediate and long-term solutions, both of which will positively benefit all Americans receiving Social Security benefits, and especially those who have received an overpayment notice or are in the recovery process.

 

Read the text of the legislation on Congresswoman Caraveo’s website.