Larson, Davis, Wyden Ask GAO to Review Social Security Administration’s Efforts to Improve Customer Service for Overpaid Beneficiaries

Washington, D.C. - Today, Ways and Means Social Security Subcommittee Ranking MemberJohn B. Larson (CT-01), Worker and Family Support Subcommittee Ranking MemberDanny K. Davis (IL-07), and Senate Committee on Finance Chair Ron Wyden (OR) sent a letter to the U.S. Government Accountability Office (GAO) requesting a review of ongoing efforts by the Social Security Administration (SSA) to improve customer service for beneficiaries who are seeking to resolve overpayments of their Social Security or Supplemental Security Income benefits.

"It is impossible to overstate the importance of SSA benefits to the American people - or the potentially dire consequences if a beneficiary's monthly payments are put at risk due to the need to recoup an overpayment. While in the vast majority of cases SSA pays the correct amount, recent media reports have highlighted the plight of beneficiaries who unknowingly received overpayments for months or even years, in some cases adding up to tens of thousands of dollars or more," the Members wrote.

"Under past policies, SSA often withheld much or all of a person's Social Security benefits to recoup an overpayment, causing severe hardship," the Members continued. "In addition, beneficiaries often found it extremely difficult, if not impossible, to navigate the process to appeal an overpayment or to request relief in the form of a waiver. SSA's longstanding rules and procedures were extremely complex and put the burden on customers to prove that the agency had erred and that it would cause hardship for them to repay the extra benefits"

"We are pleased that under the Biden Administration, including through initiatives led by former Commissioner Martin O'Malley, SSA has prioritized taking proactive steps to address often harsh recoupment policies," the Members concluded.

To gain a better understanding of the status of SSA's efforts to improve customer service for beneficiaries who face overpayments, the Members asked the GAO to review:

• The ways in which SSA overpayments can create hardships for beneficiaries.

• The customer service challenges and barriers that beneficiaries have faced in recent years to resolving SSA overpayments.

• The recent changes made by SSA to improve its customer service for beneficiaries who are seeking to understand an overpayment and access relief.

• The steps SSA is taking to evaluate whether the recent changes to its overpayment notices have reduced hardship among overpaid beneficiaries.

• SSA's plan for identifying additional customer service improvements for beneficiaries to resolve their overpayment issues.

Read the full letter hereand below.

Dear Comptroller Dodaro:

The Social Security Administration (SSA) provides benefits to more than 70 million people including seniors, survivors, and people with disabilities. Social Security and Supplemental Security Income (SSI) payments help beneficiaries to put food on the table, keep a roof over their heads, pay medical bills, and secure other basics. SSA benefits are particularly important for people of color and women, who on average have fewer resources to fall back on in retirement or in the event of a severe disability, and for children.

It is impossible to overstate the importance of SSA benefits to the American people - or the potentially dire consequences if a beneficiary's monthly payments are put at risk due to the need to recoup an overpayment. While in the vast majority of cases, SSA pays the correct amount, recent media reports have highlighted the plight of beneficiaries who unknowingly received overpayments for months or even years, in some cases adding up to tens of thousands of dollars or more.

Under past policies, SSA often withheld much or all of a person's Social Security benefits to recoup an overpayment, causing severe hardship. In addition, beneficiaries often found it extremely difficult, if not impossible, to navigate the process to appeal an overpayment or to request relief in the form of a waiver. SSA's longstanding rules and procedures were extremely complex and put the burden on customers to prove that the agency had erred and that it would cause hardship for them to repay the extra benefits. Furthermore, years of underfunding have severely eroded SSA's customer service, making it hard for beneficiaries to get help from SSA's national 1-800 number or field offices to understand and resolve overpayments.

We are pleased that under the Biden Administration, including through initiatives led by former Commissioner Martin O'Malley, SSA has prioritized taking proactive steps to address often harsh recoupment policies. To gain a better understanding of the status of SSA's efforts to improve customer service for beneficiaries who face overpayments, we request that GAO examine the following questions:

1. What are the ways in which SSA overpayments can create hardships for beneficiaries, including worsening beneficiaries' financial security and health? How did SSA's past policies and practices, prior to recent changes, contribute to these hardships?

1. What customer service challenges and barriers have beneficiaries faced in recent years to resolve SSA overpayments, including with regard to:

• understanding the overpayment, including why it occurred and options for relief;

• appealing the overpayment;

• accessing a monthly repayment plan that they can afford; and

• applying for and obtaining a waiver of part or all of the overpaid benefits?

1. What recent changes has SSA made to improve its customer service for beneficiaries who are seeking to understand an overpayment and access relief through an appeal, affordable repayment plan, or waiver? How have these changes altered the experience of beneficiaries who receive overpayment notices, including those who call the agency's national 1-800 number or visit a field office for assistance?

1. What steps is SSA taking to evaluate whether the changes to its overpayment notices and to its policies and processes for appeals, repayment plans, and waivers have reduced anxiety and hardship among beneficiaries who receive overpayment notices, and what has been found?

1. What is SSA's plan for identifying additional customer service improvements for beneficiaries to understand and access relief from overpayments?