Betsy Osborn, NOSSCR Government Relations Director

On May 7, 2024, Congresswoman Yadira Caraveo (D-CO) introduced H.R. 8265, the Social Security Overpayment Fairness Act. This bill has 2 cosponsors, one Republican and one Democrat. H.R. 8265 was referred to the House Committee on Ways and Means where it is awaiting further action. A companion bill has not yet been introduced in the Senate.

This legislation is intended to improve the process for tracking and reviewing income information for beneficiaries in order to reduce overpayments and make the recovery process more just. Among other things, this bill would extend the period before collection of overpayments begins from 30 days to 120 days. NOSSCR has endorsed H.R. 8265.

Bill Details:

SECTION 1. SHORT TITLE.

This Act may be cited as the “Social Security Overpayment Fairness Act”.

SEC. 2. NOTICE REQUIREMENT.

(a) Title II Amendment.—Subparagraph (A) of section 204(a)(1) of the Social Security Act (42 U.S.C. 404) is amended—

(1) by striking “With respect” and inserting “(i) With respect”; and

(2) by adding at the end the following:

“(ii) In the case of a payment to a person of more than the correct amount, the Commissioner shall commence proper adjustment or recovery not earlier than 120 days after providing notice to the individual of the payment of more than the correct amount.”.

(b) Title XVI Amendment.—Section 1631(b)(1) of such Act (42 U.S.C. 1383(b)(1)) is amended by adding at the end the following:

“(C) In the case of a payment of more than the correct amount of benefits, the Commissioner shall commence proper adjustment or recovery not earlier than 120 days after providing notice to the individual of the payment of more than the correct amount.”.

(c) Effective Date.—The amendments made by this Act shall take effect on the date of enactment of this Act, and shall be effective with respect to overpayments under titles II and XVI of the Social Security Act that are outstanding on or after such date.

SEC. 3. REPORT ON STRATEGIES FOR OVERPAYMENT RECOVERY.

Not later than 180 days after the date of enactment of this Act, the Commissioner of Social Security shall submit to Congress a strategy relating to the recovery of overpayments of old-age, survivors, and disability insurance benefits under title II of the Social Security Act and supplemental security income benefits under title XVI of such Act. The strategy shall seek to achieve the objectives that follow:

(1) Improving the process of reviewing changes in information reported by beneficiaries;

(2) Expanding efforts to limit discrepancies in accuracy resulting from beneficiaries self-reporting information;

(3) Improving efforts to prevent and track overpayments to beneficiaries.

(4) Ensuring due process is followed in recovering overpayments.

(5) Improving and increasing written and oral communication between the Social Security Administration and beneficiaries in relation to the recovery of overpayments.

(6) Propose fair and reasonable benefit withholding amounts designed to avoid undue financial strain on beneficiaries.