New Social Security Rule Leaves HIV Survivor Owing $200K in Benefits – Here’s How It Can Happen to You

A 61-year-old HIV/AIDS survivor from San Francisco was left stunned after receiving a demand from the Social Security Administration (SSA) to repay more than $200,000 in disability benefits, following a rule change reinstating stricter repayment policies.

The case has raised serious concerns about how recent SSA overpayment recovery measures are affecting vulnerable Americans.

11 Years of Disability Benefits Now Called “Overpaid”

Paul Aguilar, an AIDS activist who began receiving Social Security Disability Insurance (SSDI) in 2005 due to long-term health complications, was informed earlier this year that he must repay $201,000 in alleged overpayments.

According to the SSA, his eligibility for benefits ended in December 2013, yet he continued receiving payments through 2025.

“I did everything I was supposed to. I reported my income. I communicated with them regularly,” Aguilar told Bay Area Reporter.

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In 2024, Aguilar earned around $2,200 per month, exceeding the SSA’s Substantial Gainful Activity (SGA) limit of $1,550 per month for disabled non-blind individuals. The SSA now claims this income level violated eligibility guidelines, resulting in the overpayments.

Policy Reversal Fuels Crisis

This incident coincides with a significant rule change. As of March 27, 2025, the SSA has reinstated its policy to recover overpayments by withholding 100% of a recipient’s monthly benefits until the debt is cleared.

This reverses the pandemic-era limit of 10%, which was designed to ease financial burdens during COVID-19.

This means people like Aguilar could be left with no monthly income, despite ongoing health challenges and inability to work full time. Critics argue this aggressive approach disproportionately affects the disabled and elderly.

The SSA defends the move as necessary for program sustainability, but it has drawn national scrutiny.
Read more from the SSA.

Options for People Facing Overpayment Notices

For the millions potentially affected by SSA overpayments—often due to clerical errors or unclear earnings thresholds—there are a few crucial steps beneficiaries can take:

1. Request a Reconsideration
   Beneficiaries can appeal the overpayment by filing a “Request for Reconsideration” (SSA Form 561) within 60 days of receiving the notice.
2. File a Waiver
   If repayment would cause undue financial hardship, you may request a waiver. If approved, the SSA forgives the debt, even if it was valid.
3. Set Up a Payment Plan
   If waiver or appeal is denied, you can arrange for monthly repayments, based on your ability to pay. This may reduce the burden of 100% withholding.

Legal and disability rights advocates advise not ignoring the notice and acting quickly.

“You do have rights. The SSA has procedures in place, but you must act fast,” said a spokesperson from the National Organization of Social Security Claimants’ Representatives (NOSSCR).

Growing Concerns Over SSA Overpayment Crisis

According to a 2023 investigation by 60 Minutes, the SSA overpaid nearly $21 billion in recent years—much of it through no fault of the recipients. Many only found out years later, when they received shock repayment notices demanding tens or hundreds of thousands of dollars.

As more recipients come forward, lawmakers are demanding reforms to improve transparency, provide clearer income guidelines, and allow for fairer repayment plans.

“No one should wake up one morning with a letter saying they owe $200,000. The SSA must do better,” stated Rep. Adam Schiff (D-CA), whom Aguilar has contacted for help.

Conclusion: Policy Shift, Real-World Impact

Aguilar’s case underscores the tension between fiscal accountability and compassionate governance. While the SSA must recover overpaid funds to maintain trust and solvency, the method and timing of these actions are under growing scrutiny.

For now, millions of Americans—many of them disabled or elderly—may be one letter away from financial catastrophe. Legal aid organizations and policymakers are calling for immediate reforms.

This article has been carefully fact-checked by our editorial team to ensure accuracy and eliminate any misleading information. We are committed to maintaining the highest standards of integrity in our content.