WELFARE
SSI beneficiaries who lost Social Security benefits as a result receiving stimulus checks
Stimulus checks were a crucial part of securing people’s finances during the covid-19 pandemic but may have damaged chances of qualifying for benefits.
The chaos caused by the covid-19 pandemic was widespread. Millions of jobs were lost, life stopped for many, and the US economy tanked. Offered as support were the stimulus checks, dispatched by both Donald Trump and Joe Biden, formally known as the Economic Impact Payments. The checks were sent out three times with varying sizes, with some nearly $3,000.
On the whole, the stimulus checks were a success. Though not perfect, they prevented people falling into widespread food hardship, debt, and poverty.
What may not have been considered at the time is the stimulus checks’ effects on benefits. Indeed, some recipients of welfare checks, such as Supplemental Security Income (SSI), have been denied their benefits by being over earning limits caused by the checks. The checks are supposed to be discounted as countable for purposes of SSI eligibility, but there have been problems in practice.
A group of senators have called upon the Social Security Administration (SSA) to give more information about those affected by the problem. The three Democrat senators, Ron Wyden, Sherrod Brown, and Bob Casey are heading the push, demanding information on these points:
- The number of individuals who had their benefits reduced or suspended because of the stimulus checks,
- How many of these people had their benefits restored
- A list of the agencies actions to address the problems,
- How many claimants have been denied because of the stimulus checks.
“We are deeply concerned that [SSI] beneficiaries are receiving overpayment notices in error, because SSA is not following its own determination to exclude EIPs [stimulus checks] from countable resources,” the group said in a statement. “Benefit suspensions and overpayment notices—regardless of the cause—can have a profound negative impact in their lives.”
7.6 million people are on SSI payments. The advice from experts is to file an appeal if your benefits claim has been denied.
“If you receive an overpayment notice from the Social Security Administration, and believe that it was due to a Covid stimulus payment or another error that was made by the Social Security Administration, you should file an appeal,” said Darcy Milburn, director of Social Security and health-care policy at The Arc, an advocacy organization for people with intellectual and developmental disabilities.
The SSA has responded to the senators
The organisation in charge of welfare says it is aware of the request and will give the senators the information they seek.
“We included information that [stimulus checks] are not counted as income when received and will not be counted against SSI applicants or recipients’ resource limits no matter how long they keep those funds,” Social Security Administration spokeswoman Nicole Tiggemann told CNBC.