Social Security Chief Announces Comprehensive Review Following Overpayment Controversy
ICARO Media Group
Politics
19/10/2023 23h22
In response to mounting criticism and concerns over erroneous benefit payments, Kilolo Kijakazi, the acting commissioner of the Social Security Administration, has vowed to conduct a "top-to-bottom, comprehensive review" of the agency's handling of overpayments. Kijakazi's announcement came during a congressional hearing where House members expressed frustration over the billions of dollars in payment errors and subsequent demands for repayment from beneficiaries.During the hearing, Representative Greg Steube (R-Fla.) referred to a recent investigation by KFF Health News and Cox Media Group, highlighting how ordinary citizens, particularly those who are poor and disabled, are being burdened with repayments due to government mistakes. Steube described the financial toll on individuals who live paycheck to paycheck and receive notices from the federal government demanding tens of thousands of dollars.Acknowledging the seriousness of the issue, Kijakazi emphasized that Social Security employees strive to ensure accurate and timely payments to recipients. When questioned about accountability for overpayment mistakes, Kijakazi declared that the agency is holding itself responsible.Until now, the exact number of individuals affected by overpayments had not been disclosed by the agency. However, during the hearing, Kijakazi revealed that 1,028,389 people received overpayment notices in the 2022 fiscal year, and 986,912 notices were issued in fiscal 2023. Representative Mike Carey (R-Ohio) expressed concern about the significant number of cases, which explains the inundation of congressional offices with requests for assistance regarding overpayments.The congressional hearing was prompted by joint investigative reports by CMG and KFF Health News, shedding light on the hardships experienced by poor, disabled, and retired individuals when the government seeks reimbursement for benefits that have long been spent. In some cases, the Social Security Administration takes years to identify overpayments, leading to substantial amounts owed by beneficiaries.In response to the outcry, the agency has established a team to review its handling of overpayments. Kijakazi outlined that the review will assess the root causes of overpayments, the clarity and effectiveness of beneficiary notices, and processes to enhance efficiency.Efforts have been made to simplify the form beneficiaries must complete when seeking to waive an overpayment demand. However, Representative Drew Ferguson (R-Ga.), the chair of the subcommittee, criticized the new form as overly complicated and burdensome for beneficiaries.While Kijakazi and Democratic lawmakers argued for increased funding to improve agency performance, Republicans contended that the slow adoption of automation within the Social Security Administration contributed to errors. Automating data collection, especially regarding beneficiaries' earnings and workers' compensation, was cited as a potential solution to reduce mistakes.According to a report by the agency's inspector general, the Social Security Administration estimated overpayments of $6 billion and underpayments of $1.4 billion in the 2021 fiscal year. Additionally, the report revealed a cumulative total of $21.6 billion in uncollected overpayments by the end of the 2022 fiscal year.Lawmakers highlighted that underpayments also harm beneficiaries. For instance, the agency's inspector general reported a delay in payments to adults responsible for managing the benefits of approximately 50,000 children, resulting in a loss of around $308 million.The testimony of witnesses during the hearing did not include individuals personally affected by overpayment notices. However, interviews conducted by KFF Health News and CMG revealed the devastating impact of such notices on people's lives, including difficulties in resolving issues with the agency.Instances were cited, such as Justina Worrell, a kitchen helper with a heart condition and intellectual disability, receiving an overpayment notice of over $60,000. Matt Cooper, a police officer injured on duty, was asked to repay $30,000 while his children's benefits were reduced. Julia Greune, who is blind and has cerebral palsy, was requested to repay over $6,000 due to an incorrect calculation of COVID-19 relief payments.In light of the recent investigations and testimonies, calls have been made to halt the pursuit of overpayments by Congress members. Senator Sherrod Brown (D-Ohio) urged the Social Security Administration to stop penalizing individuals who have been overpaid for extended periods.As the agency prepares for an internal review, the spotlight remains on the Social Security Administration's handling of overpayments and the impact on vulnerable populations. The outcome of the comprehensive review will be closely watched to ensure fair and accurate benefit distribution, while efforts are made to provide better customer service and address systemic challenges within the agency.
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