Millions face Social Security cuts as agency claws back billions in overpayments

Schwartzreport · one year ago · 82 views

Truman Lewis,  Reporter  -  Consumer AffairsStephan: Social Security has been devastated by Musk's DOGE, under Trump's direction, but apparently it was already a mess. I think it is very notable that the other developed democracies seem to be able to promote wellbeing effectively, in healthcare, education, childcare, and eldercare, while in the United States, we don't seem to be able to. Just look at the social outcome data under any category you can name. Starting in July, the SSA will withhold 50% of benefits from overpaid recipients, aiming to recover $23 billion in outstanding debts. Credit: ConsumerAffairs Social Security cuts begin in July as the agency moves to recover billions in past overpayments. Half of some beneficiaries’ monthly checks will be withheld, up from the previous 10% recovery rate. $72 billion in improper payments were made between 2015-2022, with $23 billion still uncollected. Starting late July, some Americans will see smaller Social Security checks as the federal agency moves to reclaim billions of dollars mistakenly paid out in past years. The Social Security Administration (SSA) confirmed it will begin withholding 50% of monthly benefits from recipients who were overpaid—a significant increase from the previous 10% clawback rate. The change, announced in April, is a partial retreat from an even more aggressive plan floated in March to seize entire benefit payments until debts were repaid. Overpayments total billions The SSA has struggled with overpayments for years. Between fiscal years 2015 and 2022, the agency distributed nearly $72 billion in improper payments, most of them overpayments, according to an August [...]