42 U.S.C. § 1320b–17 — Cross-program recovery of overpayments from benefits

(a) Subject to subsection (b), when the Commissioner determines that a person received more than the correct payment under a program in subsection (e), the Commissioner may recover the overpayment by reducing an amount payable to that person under another listed program. (b) (1) Generally, the reduction may not lower a regularly due monthly benefit by more than: (A) for subchapter II or VIII benefits, 10 percent of that month’s benefit; or (B) for subchapter XVI, the lesser of (i) the month’s benefit or (ii) 10 percent of the person’s monthly income, including that benefit but excluding subchapter II payments when recovery is also from those payments and income excluded under section 1382a(b). (2) These limits do not apply if (A) the person or spouse willfully misrepresented or concealed material information connected with the overpayment, or (B) the person asks for the reduction. (c) If the Commissioner recovers an overpayment under subsection (a), the recovery may not, as a result of that action, make the person eligible for benefits under subchapter VIII or XVI. For the program in subsection (e)(3), it also may not make another individual newly eligible for benefits under subchapter VIII or XVI when that individual’s eligibility or benefit amount is determined by considering any part of the person’s income. If the person or that other individual is otherwise eligible, the recovery may not increase the person’s or individual’s benefits under the applicable program. (d) Section 407 does not apply to actions under this section reducing amounts payable under subchapters II and XVI. (e) The programs are: (1) the old-age, survivors, and disability insurance benefits program under subchapter II; (2) the special-benefits program for certain World War II veterans under subchapter VIII; and (3) the supplemental-security-income benefits program under subchapter XVI, including State supplementary payments paid by the Commissioner under an agreement under section 1382e(a) or section 212(b) of Public Law 93–66.