Grainger County Resident Faces $57,000 Bill After Social Security Overpayment

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A Grainger County resident is facing a daunting challenge after receiving a notification from the Social Security Administration demanding the repayment of a significant sum of money. The agency claims that Annemarie Fugate, who is disabled, was overpaid in benefits, amounting to tens of thousands of dollars.

Fugate, whose disability dates back to the early 1990s, has recently been informed that she owes an unexpected debt. Despite her condition, she managed to work until just a few years ago when her health made it increasingly difficult to maintain full-time employment.

In her earlier years, Fugate served as a dental technician, a career she pursued after training with the United States Air Force. She embarked on her military service journey at the age of 19 in the early 1980s. Although divorced and having suffered severe injuries in a car accident years ago, she continued her professional life for as long as possible.

Since 2021, Fugate has been receiving monthly Social Security disability payments. However, in July, she was taken aback by a letter from the Social Security Administration, notifying her of the alleged overpayment.

“I was overpaid by $57,000,” said Fugate. “I didn’t even work during that time frame.”

Fugate said she appealed the notice immediately.

“It says, ‘Do you think we’re wrong about your overpayment?’ Yes. Pay stubs, mortgage or rent, utility bills for three months, medical and dental bills,” said Fugate.

That’s just some of the information she forwarded to Social Security to file her appeal.

“I’ve done all the paperwork, everything they’ve asked me for,” said Fugate. “And I’m still sitting and waiting. When I called Social Security this past week, they told me that because of the government shutdown, I’m just going to have to wait. They can’t tell me anything. Meanwhile, I have bills that have to be paid. Plus the $57,000 that I never got.”

This Social Security schedule shows that in 2021, she was paid $1,374 a month, and her disability steadily rose to $1,592 a month by the beginning of 2023.

“I’m trying to get someone to listen to me, so I can get this reinstated. Because I have bills I’ve got to pay and I can’t pay them if I have no income,” said Fugate.

In February 2024, Social Security informed her that she owed them $4,500 despite receiving scheduled monthly payments.

“I’ve mailed it to them, made the calls, everything they told me to do. But nobody can give me an answer as to why, all of a sudden, I owe $57,000,” said Fugate. “I’ve had several seizures and a stroke. They say that I’m able to work. Well, I’m not able to work. But they’re saying you got overpaid, so you need to work, get a job, and pay it back.”

Her nasty-looking leg injury, suffered years ago, still requires future surgery. She wants the overpayment issue worked out.

“I want my social security to be reinstated,” said Fugate.

Fugate believes that if she could meet someone from Social Security face to face, perhaps they could explain why she owes the government so much money. But right now she has no answer. She says she did work part-time over the last four years, but says she never made more than what is allowed under regulations to keep her social security disability. Fugate says she is desperate, and if needed, her next step is seeking legal assistance.