• Skip to main content
  • Skip to secondary menu
  • Skip to primary sidebar
  • Skip to footer
California Health Advocates

California Health Advocates

  • Contact
  • Home
  • About Us
    • Contact
    • Our Team
    • Mission
    • Education Services
    • About HICAP
    • Press
    • Testimonials
  • MEDICARE COUNSELING
  • Fact Sheets
  • Topics
    • The Basics
    • Prescription Drugs
    • Low-Income Help
    • Medigap
    • Medicare Advantage
    • Other Health Insurance
    • Appeals
    • Billing & Claims
    • Disabilities
    • Long-Term Care
    • Tribal Nations & Medicare
    • Health Care Reform
    • Advocacy & Policy
    • Glossary
  • Fraud & Abuse
  • Blog
  • Donate

Social Security to Repay Over $500 Million in Unlawfully Withheld Benefits

California Health Advocates > Low-Income help > Social Security to Repay Over $500 Million in Unlawfully Withheld Benefits

Posted by Karen Fletcher on September 30, 2009

The Social Security Administration will repay more than $500 million in benefits that were illegally withheld from 80,000 people whose benefits have been suspended or denied since January 1, 2007.  SSA’s agreement to pay these funds is part of a class action settlement that was granted final approval last week by a U.S. District Court Judge.  In addition, people whose benefits were suspended or denied between 2000 and 2006 will be notified of the new policy and given a chance to re-establish eligibility. In total, over 200,000 people may see their benefits reinstated and/or receive back payments due to the settlement. All beneficiaries must continue to be eligible for benefits in order to receive payments.

The settlement resolves a lawsuit, Martinez v. Astrue, challenging SSA’s method of implementing a narrowly drawn provision of the Social Security Act.  The law aims to prevent people from using government benefits to escape arrest.  Yet rather than figuring out which Social Security recipients were actually fleeing prosecution, SSA used a computer matching system that matched names in warrant databases to those at SSA.  Many of the matches and automatic benefit suspensions involved false or unproven allegations, minor infractions or long-dormant arrest warrants. Although regulations provide for an appeal process, individuals losing benefits were routinely, inaccurately informed by SSA staff that they could not appeal.

Under the agreement, SSA has stopped, as of April 1, 2009, suspending or denying benefits due to the mere existence of a warrant – unless the warrant is issued in a criminal proceeding on a charge such as flight or escape.  This change in policy will benefit thousands of additional people every month from now on.

Note: this case/settlement does not apply to beneficiaries whose benefits were suspended or denied due to suspected parole or probation violation.

This agreement will take full effect as of November 30, 2009. Delivery of relief to class members will occur in 2010 and beyond. Class members should confirm their correct address is on file with the SSA, thus ensuring they receive the mailings when sent out next year.

National Senior Citizens Law Center (NSCLC), pro bono counsel from the law firm of Munger, Tolles & Olson, the Mental Health Project of the Urban Justice Center, Disability Rights California, and the Legal Aid Society of San Mateo County all represented the plantiffs in this case.

See NSCLC’s website section on the Martinez Settlement for more information.

This article was edited in part from NSCLC’s press release and current update.

Filed Under: Low-Income help

Previous Post: « HHS Investigates Misinformation Campaigns to Medicare Beneficiaries
Next Post: CHA’s Nationally Recognized Senior Medicare Patrol Project is on the News »

About Karen Fletcher

Our blogger Karen J. Fletcher is CHA's publications consultant. She provides technical expertise, writing and research on Medicare, health disparities and other health care issues. With a Masters in Public Health from UC Berkeley, she serves in health advocacy as a trainer and consultant. See her current articles.

Related Posts

  • Free Medi-Cal is Available for Eligible Californians 50+
  • Need Help with Medicare Costs? Medicare Savings Programs May Help
  • Does Medi-Cal’s Asset Limit Increase Affect Other Aspects of Medi-Cal?
  • Big Changes in Medi-Cal: Asset Limit Elimination & Coverage Expansion

Primary Sidebar

Change Text Size

  • 100%  110%  120%  130%  

News & Blog Categories

  • Medicare Advantage
  • Low-Income help
  • Medicare & Disabilities
  • Medicare Basics
  • Prescription Drugs
  • Medicare & Other Health Insurance
  • Medicare Billings, Claims & Appeals
  • Health Care Disparities
  • Fraud & Abuse

—

  • COVID-19
  • Resources
  • Health Care Reform
  • Long-Term Care
  • CHA News

—

  • Advocacy & Policy
  • Letters and Comments to Policymakers
  • Legislative and Congressional Testimony
  • Policy Briefs

Send Us Comment

Do you have comments or concerns about your Medicare coverage? Issues regarding getting your needed prescriptions from your Part D plan, or a Medicare Advantage plan representative's marketing practices? Let us know at comments@cahealthadvocates.org.

We are dedicated to making Medicare's program work well for all beneficiaries. Your feedback from your own or your client's concerns and experiences with Medicare, will guide our Medicare advocacy efforts with key policy and decision-makers in both California and nationally with the Centers for Medicare and Medicaid Services (CMS) and Congress.

Archives

Donate Today

Footer

Sign up for our newsletter

Choose the news you'd like to receive

Important Links

  • About Us
  • Fact Sheets
  • Blog
  • Donate
  • Contact
  • Privacy Notice
  • Cookie Policy
  • Accessibility Statement

Follow Us

Copyright © 2022 · California Health Advocates · Web Design by TWK Web and Print Design · Log in