Social Security to correct overpayments: This is what happens to Medicare if your check is clawed back
The SSA is reinstating a plan to recover 100% of overpayments made to beneficiaries, up from 10%.
Social Security Administration recently announced it will reinstate a plan to recover 100% of overpayments to beneficiaries, a policy they abandoned just last year.
When will the SSA start recovering 100% of overpayments?
The withholding rate for someone who had been overpaid had been slashed to just 10% of the person’s monthly benefits, although the SSA has now performed a U-turn, with anyone overpaid after March 27 to be placed in full recovery at a rate of 100%.
If you are receiving Social Security checks, pay attention:
— Scott Matte (@ScottMatte) March 17, 2025
Starting March 27th, if you receive a Social Security overpayment, your withholding rate will change from 10% to 100% until the overpayment is paid back. That means you will get no Social Security check until it’s paid.
The concern for many, as was previously the case, was that overpayments are often as a result of the SSA’s miscalculations, and those affected don’t realize they have overpaid until they are hit with a huge bill.
How the SSA’s overpayment plan could affect Medicare
According to experts, senior citizens whose benefit checks are subject to the 100% clawback could also be affected when it comes to Medicare, as many seniors have their Medicare Part B premiums deducted automatically from their Social Security monthly checks.
Frustratingly, though, there is still uncertainty surrounding the issue.
“If you are on Medicare, it means you might not pay your Medicare possibly, so you might lose your Medicare. It’s a trickle down effect,” claims Ed Weir, a former Social Security manager who now runs a YouTube channel offering advice on such matters.
Similarly, Nancy Altman, president of Social Security Works, an advocacy group for the benefit, says it is currently unclear whether seniors should switch to another payment system to pay for their Medicare premiums, or whether the SSA would let them pay for health care first before recovering the remaining money.
The SSA has yet to comment on the matter, but is expected to do so as the cut-off date edges closer.
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