Short-term disability (STD) overpayment recovery has become a significant concern with the Social Security Administration (SSA) facing challenges in preventing overpayment and recovering overpayments.
A 2019 study found that over 70% of Disability Insurance (DI) beneficiaries with earnings sufficient to affect their benefits, received overpayments. These overpayments lasted for a median of 9 months and accrued a median amount of $9,282 (Reference gao.gov)
In addition, beneficiaries continue to face financial hardship due to overpayment recovery efforts. For instance, a couple was recently asked to repay $30,000 due to overpayments on their benefits. The couple selected to repay the overpayment debt by using part of their future benefit payment. As a result, there was a reduction in monthly payments to the couple from $900 to $150. (Reference the-sun.com)
These developments highlight the ongoing challenges in properly managing short-term disability overpayment recovery by an expert agency and the need for effective solutions to support affected beneficiaries.
To learn more about how Brown & Joseph can help you recover Short-Term Disability overpayments, visit our Short-Term Disability page and we’d love to connect with you!