Workers’ Compensation Recipients Face Massive SSA Clawbacks in Overpayments
October 19, 2023
The Social Security Administration (SSA) is attempting to recoup billions of dollars in disability overpayments, many of which were made to workers who received benefit payouts for injuries. According to a recent SSA inspector general’s report, the administration collected approximately $4.7 billion last year, while another $22 billion remains outstanding.
Research conducted by the Urban Institute shows that the SSA sent letters to millions nationwide who receive disability benefits. One woman reported receiving a notice from the administration in 2017, which stated she had been overpaid $126,600 in Workers’ Compensation benefits.
News outlets have reported that SSA clawbacks can come in the form of reduced payments, garnishment of wages, or interception of tax refunds. Social Security benefits are meant to be offset against Workers’ Compensation payouts, as provided by most state laws. Unfortunately, the SSA has not adequately policed its payments, according to several sources.
The administration accepts the offset language approved by the Workers’ Compensation Judge/Legal System to prorate a settlement amount over the claimant’s life expectancy after attorney’s fees and future medical expenses. Having an experienced attorney handle both claims is beneficial to ensure that offset language is included in the Workers’ Compensation settlement and accepted by the SSA.
Contact Galfand Berger LLP for more information. Call 800-222-USWA (8792) or contact us online to schedule a free consultation. Located in Philadelphia, Bethlehem, Lancaster, and Reading, Pennsylvania, we serve clients in New Jersey and Pennsylvania, including Allentown and Harrisburg.