In a recent development, Senators Ron Wyden, Sherrod Brown, and Bob Casey, members of the Senate Subcommittee on Social Security, have raised concerns with SSA Commissioner Kilolo Kijakazi about the alleged overpayment notices sent to beneficiaries of COVID relief payments. The payments, which totaled up to $3,200 per person, were distributed in 2020 and 2021 to alleviate pandemic-induced economic hardships.
The senators' concerns stem from instances where recipients' bank balances exceeded the $2,000 asset limit for individuals under the Supplemental Security Income (SSI) program due to these relief payments. This led to a decrease in other federal benefits for groups including the poor, disabled, or seniors over 65 and triggered repayment demands from SSA. The senators argue this is an error as COVID relief payments should not count towards the asset limit.
In their dialogue with Commissioner Kijakazi, the senators requested data on those affected by benefit reductions or suspensions due to COVID-19 payments and those who had benefits reinstated with or without appealing. They emphasized the importance of SSI benefits and how losing eligibility can risk access to Medicaid coverage.
This issue is part of a larger problem where many Americans are grappling with SSA's collection efforts to repay benefits they allegedly should not have received due to non-compliance or government errors. Kijakazi revealed at a House panel hearing that about 1 million people received overpayment notices in each of the last two fiscal years. She stated that if a beneficiary has been overpaid, recovery of the overpayment amounts is required by law.
The SSA is conducting a "top-to-bottom" review of its handling of overpayments. In response to these ongoing issues, Senator Brown suggested that a legislative solution might be necessary to resolve the issue.
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