Social Security Releases $901 Million in Underpayments – Check If You Are a Beneficiary

In a significant move to rectify past payment errors, the Social Security Administration (SSA) has released over $900 million owed to disability beneficiaries. Announced in a government blog post on July 16, 2024, this initiative addresses the $901 million owed to Supplemental Security Income (SSI) recipients as of June 2024. SSI supports individuals over 65, those with qualifying disabilities, or blindness who have very-low-to-no income.

Underpayments

Underpayments occur when benefits are miscalculated, leading to recipients receiving less than they are entitled to. The SSA reported that $209.1 million of this total comprises the most complex and prolonged underpayments, affecting around 81,000 people. The agency emphasized its commitment to resolving issues through peer reviews and improved payment processes to ensure timely disbursements.

Importance of SSI

SSI is a critical lifeline for many Americans. By providing financial support to the elderly, disabled, and blind, it helps cover basic living expenses. This recent release of funds reflects the SSA’s dedication to ensuring that all beneficiaries receive the full benefits they are due, correcting both past miscalculations and addressing ongoing payment challenges.

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Causes of Improper Payments

The SSA’s Office of the Inspector General has identified several reasons for improper payments, including both overpayments and underpayments. These reasons include:

• Failure to obtain necessary information from beneficiaries
• Neglecting to act on received information
• Errors in calculating payments
• Reliance on manual processes

Impact on Beneficiaries

Underpayments have significantly impacted beneficiaries. In the 2019 financial year, the inability to authenticate eligibility resulted in $623 million not being paid out to disability benefit recipients. Additionally, administrative errors led to $41 million in unissued SSI benefits. In a notable instance, $724 million in benefits went unpaid to SSI claimants in a single year.

Financial Year 2019 Impact

Reason for Underpayment	Amount Unpaid ($ million)
Authentication Issues	623
Administrative Errors	41

Scrutiny Over Improper Payments

The SSA has faced increasing scrutiny over improper payments, particularly regarding overpayments. Many beneficiaries, unaware of being overpaid, have been asked to repay large sums, causing significant financial strain. These overpayment disputes often drag on for years, with some cases dating back over a decade.

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Long-standing Overpayment Disputes

For example, one beneficiary has been contesting an overpayment notice since 2011, highlighting the prolonged nature of these disputes. Such cases illustrate the need for the SSA to improve its payment accuracy and communication with recipients.

Overpayment Recoupment

In response to these issues, the SSA announced a major policy change in March 2024 regarding the recoupment of overpayments. Key changes include ending the practice of intercepting 100 percent of an overpaid beneficiary’s monthly Social Security benefit by default if they did not respond to the SSA’s repayment demand.

This policy change aims to ease the financial burden on beneficiaries who were overpaid through no fault of their own. By implementing more flexible repayment options, the SSA hopes to address these overpayments more fairly and effectively.

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The release of $901 million in underpayments underscores the SSA’s ongoing efforts to rectify past mistakes and improve the accuracy of benefit disbursements. These measures are crucial in ensuring that all beneficiaries receive the support they deserve, maintaining the integrity and reliability of the SSI program.

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