Every week I get calls from people who are faced with Social Security trying to collect overpayments of benefits. An overpayment can occur for a variety of reasons. It simply means that Social Security has determined that you have been getting more each month than you were entitled to. A common example would
be a beneficiary who returned to work or came into some money via an inheritance or some other means. (As always, the rules for Supplemental Security Income (SSI) are different from those for regular disability.
When faced with an overpayment, a Social Security disability beneficiary has options. She can ask for a waiver, meaning Social Security would agree not to collect what they claim they are owed. Or, a person could ask for what amounts to a payment plan. If Social Security agrees, they would reduce a beneficiary's monthly check by a set amount until the overpayment is satisfied.
A Way To Limit Repayment To Only $10 A Month
If you find yourself negotiating a payment plan with Social Security, you need to be aware of a special circumstance that could drastically reduce what Social
Security can take from you. It works like this: if you are getting a 100% subsidy for Medicare Part D, Social Security must accept an offer to pay back $10 per month.
The Medicare Part D subsidy is available to people with assets below $9,230 and who have a monthly income of no more than $1,425.
If You Get A Medicare Part D Subsidy, You Can Avoid Harsh Repayment Terms
It is wise to check if you already have this subsidy. If not, and you qualify, put in for it. With any luck, you will never face a Social Security overpayment. But, if you do, you can limit your monthly deduction to $10.