As of March 2025, the Social Security Administration (SSA) put forward a policy to reclaim 100% of monthly benefits from recipients who were overpaid. This move incited concern and worry amongst many seniors, especially those of the vulnerable population. This unjust move was meant to recover an estimated $7 billion over the next decade.
However, this proposal faced a lot of criticism. Many critics highlighted that many overpayments resulted from SSA’s mistakes, such as problems with the computer systems or outdated information.
Frank Bisignano’s Stance on Overpayments
The newly appointed SSA commissioner, Frank Bisignano addressed the overpayment issue during his Senate confirmation hearing. He noted that there a need to address all the improper payment issues. Bisignano is aware of the challenges posed by the SSA’s outdated systems and the need for significant changes to enhance efficiency.
He is also aware that beneficiaries are facing difficulty in contacting the SSA because only about 46% of calls are answered due to long wait times. This lack of accessibility causes unnecessary stress for those trying to resolve overpayment issues.
However, the most meaningful act was his acknowledgment of the lack of proper communication between the SSA and its beneficiaries. Bisignano revealed that only about 46% of incoming calls to SSA offices are currently being answered. This simply means that more than half of those who are trying to reach the SSA regarding Social Security concerns, are left unattended to.
“That statistic is not just a number,” he said. “That’s a real person, often elderly or disabled, sitting on hold for hours—or worse, giving up because they can’t get through. We are failing them.”- Frank Bisignano
The consequences of this crisis are major. The letters that are sent out regarding overpayments can be confusing and difficult to understand as it is filled with jargon and short deadlines. Those beneficiaries who are not able to get a hold of a representative may not be able to request information or appeal against the repayment amount. This then leads to automatic deductions from their monthly benefits which leaves the recipients financially strained and unable to cater for housing, food or medical expenses.
Bisignano has vowed to improve customer service by advocating for more staff in offices, improving online tools and facilitating a more transparent system that notifies recipients of possible overpayments before harsh actions are taken.
Policy Reversal: A Partial Relief
In April 2025, the SSA finally listened to public and reduced the overpayment recovery rate from 100% to 50% of monthly benefits. This change indeed provides some relief but still poses challenges for those who rely on Social Security benefits as a primary source of income. Beneficiaries now have 90 days to appeal the overpayment, request a waiver, or negotiate a lower repayment rate.
There are many beneficiaries who survive on fixed income and may struggle to meet basic needs as a result of reduced benefits. Many advocates argue that the SSA should compensate for the overpayment as the fault lies in them and not the beneficiaries.
While the reduction in overpayment repayment has now decreased to 50%, there are still issues that persist. The SSA needs to address all the problems within the department and improve communication with beneficiaries to prevent future problems with beneficiaries. Commissioner Bisignano’s commitment to reducing improper payments is a step in the right direction, but it requires substantial investment in technology and personnel.
It is important for beneficiaries to stay informed and make proactive decisions. Beneficiaries must review benefit statements and report any changes to income as soon as possible. As the SSA navigates these challenges, they must remain focused on safeguarding the financial well-being of the millions of citizens who depend on Social Security as a financial backbone.