The new head of the Social Security Administration has promised to overhaul the agency’s system to recover billions of dollars that he says were fraudulently transferred to beneficiaries, calling it “completely incorrect and not fair.”

In an interview with KFF Health News, SSA Secretary Martin O’Malley said debt trampling is driving some people into homelessness and causing financial hardship for the country’s most vulnerable people, the poorest. He said he would propose changes in the coming days to help people avoid this. People who are poor, disabled, have a persistent medical condition, or at least 65 years of age.

O’Malley, who took office in December, said he would “address the injustice we do to too many Americans because of overpayments, which is a pretty cruel and thoughtless way to recover overpayments.” “This is one of his top priorities,” he said.

He said he had concrete measures in mind, including establishing a statute of limitations, shifting the burden of proof to authorities and imposing a 10% cap on clawbacks for some beneficiaries.

“We have the ability and the authority to address many of these injustices,” he said, suggesting that SSA does not need to wait for Congress to act.

The pledge comes after an investigation by KFF Health News and Cox Media Group television stations revealed that the SSA is seeking to recoup billions of dollars in payments that were sent to beneficiaries and then allegedly never received. This comes after it was revealed that gold checks were routinely reduced or stopped.

In some cases, years passed before the government realized its mistake and imposed debts, sometimes amounting to tens of thousands of dollars, on people who could not afford to pay. KFF Health News and Cox Media Group found that more than 2 million people are hit with overpayment claims each year.

Most of the overpayments are related to the Supplemental Security Income program, which provides money to people who have little or no income, are disabled, blind, or over 65 years old. Other overpayments are related to the Social Security Disability Insurance program, which supports disabled workers and workers. their dependents.

O’Malley said the agency will halt years of efforts to recover overpayments and end its practice of cutting off benefits for disabled workers who fail to respond because they did not receive or did not understand overpayment notices. He said that.

“Evicting seniors who don’t understand our notice from their homes and forcing them to live under bridges is not fulfilling the intent of Congress,” O’Malley said.

Dennis Woods lives in a Chevrolet and searches for a safe place to sleep each night at strip malls and truck stops around Savannah, Georgia. Woods became homeless in 2022, she said, after the SSA determined that it had overpaid her without explanation and demanded that her approximately $58,000 be returned. Woods didn’t have that amount in her pocket, so the agency cut off her monthly disability benefits to recoup her debt.

The agency later restored some of her benefits, and she received $616 a month. That’s not enough to cover Savannah’s rent, which can cost $1,000 a month for a modest studio apartment.

In January, she became unwell and was admitted to intensive care with pneumonia. “I signed [Do Not Resuscitate form] Then the nurse said, “Do you know what this means? ’” Woods said. “I told her that if her heart stopped, she had no reason to resuscitate her. They’ve already ruined my life. I’m exhausted.”

After KFF Health News and Cox Media Group published the “Overpayment Abuse” series, hundreds of disabled recipients were told that the government sent them unexplained overpayment notices or deprived them of their primary source of income with little warning. He provided controversial testimony, including how he threatened to cut off his services.

Members of Congress publicly demanded that SSA resolve the issue. Sen. Ron Wyden, D-Ore., said he would meet monthly with government officials “until the issue is resolved.”

Michigan Democratic Sens. Gary Peters and Debbie Stabenow sent a letter dated Feb. 29 to the SSA saying many of the overpayments were caused by the SSA. They asked the authorities to explain the cause of the problem.

“It is critical that government agencies accurately administer these benefits,” Peters said in a written response to an interview request. “We have heard from too many people across Michigan who have faced financial hardship because government agencies sent them the wrong payments.”

According to the latest annual financial report, the authority recovered $4.9 billion in overpayments during fiscal year 2023, with an additional $23 billion in overpayments still to be recovered.

O’Malley said he wants to work on reversing overpayments as part of a larger effort to address SSA’s “customer service crisis.” He did not provide details, but said he expected the plan to be implemented this year.

Officials have long acknowledged that the federal disability system is plagued by long delays and dysfunction. Some people became homeless or became unwell while waiting for an initial decision on their application, which took an average of more than seven months in 2023, according to a letter signed by dozens of MPs. .

O’Malley said the agency will terminate disability benefits for some people who did not contact SSA after receiving a clawback letter.

“To be honest, there are a lot of problems.” [are caused by] “Our notice is difficult to read,” O’Malley said, adding, “In fact, some might argue that the only thing that’s really clear about this notice is to call the 800 number.”

The agency’s toll-free number is also on the repair list, O’Malley said.

Lawmakers, lawyers for people with disabilities and others say callers often complain of long hold times and are unable to reach representatives for help.

O’Malley noted that staffing levels are at their lowest in 27 years. “We’ve figured out a lot of the customer service challenges,” he said. “There is not a single situation that is not exacerbated by staff shortages.”

Still, he said the overpayment process was unfair. O’Malley noted that beneficiaries often have to provide proof that they did not receive the extra money.

“In a country where people are innocent until proven guilty, you would think that the burden should be borne by the authorities rather than the unknowing beneficiaries,” he said.

Advocates for the poor and disabled said they expect Mr. O’Malley to stick to his pledge.

“Overpayments have plagued our clients for years and caused serious hardship,” said Jen Burdick, an attorney with Community Legal Services in Philadelphia, who represents clients who have received overpayment notices. “We are pleased to learn that SSA’s new Administrator is taking a hard look at reforming the overpayment policy and is optimistic and hopeful that his administration will provide long-needed relief to these individuals. We feel encouraged.”

Mike Pistorio worries that change isn’t happening fast enough.

A letter dated September 21, 2023, that he received from the Social Security Administration says he was overpaid by $9,344. The letter alleges that Pistorio, a 63-year-old disabled man with four stents in his heart, received too much money to support his children, who are now adults.

Pistorio said he doesn’t understand why he owes money to the government and that the SSA hasn’t answered his questions. He said he and his wife live in fear of being evicted from their home because they rely on his $1,266 monthly disability benefits to pay rent.

“What’s frustrating is that this is not my fault,” said Pistorio, who lives in Middletown, Pennsylvania. Mr. Pistorio worked as a plumber until his health failed. “This stress has made my diabetes worse.”

Pistorio said authorities offered to deduct $269 a month from his benefits to pay off his debt, but Pistorio says he can’t afford that amount.

“I told them, ‘You’re going to lose your home,'” Pistorio said.

David Hilzenrath of KFF Health News and Jodie Fleischer of Cox Media Group contributed to this report.