Biden Admin Changing 'Cruel' Policy On Social Security Overpayments

The Social Security Administration is reforming how it recovers overpayments of benefits following an outcry over policies that drove some Americans into poverty, and even homelessness. Via CBS News:

By law, the agency must claw back overpaid benefits, but SSA’s policies had sparked outrage and concern after some Social Security recipients reported surprise bills that demanded payment within 30 days. Sometimes the bills mounted into the tens of thousands of dollars. If they couldn’t immediately pay the bill, the agency could dock their entire monthly Social Security payment, leaving some people financially destitute, as reported by “60 Minutes,” KFF Health News and other media outlets.

In a statement issued Wednesday, Social Security Commissioner Martin O’Malley said the agency will cease “the heavy-handed practice of intercepting 100% of an overpaid beneficiary’s monthly Social Security benefit” if they failed to respond to a demand for repayment. Instead, he added, the agency will limit the clawback to 10% of an overpaid beneficiary’s monthly benefit.

Additionally, the Social Security Administration will extend repayment plans to 60 months, up from its prior limit of 36 months, giving recipients an additional two years to repay the money.

[…] In a hearing before the Senate Committee on Aging on Wednesday, O’Malley said the previous policies had undermined the essential purpose of the Social Security program, which he said was “to keep seniors from being put under a bridge through no fault of their own.”

This is Democrats righting a wrong.

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