Should a beneficiary request reconsideration of an overpayment before seeking a waiver of the overpayment?

The most appropriate approach for a beneficiary dealing with an overpayment situation is to request a waiver prior to seeking reconsideration of that overpayment. When a waiver is requested, the focus is on the individual’s ability to repay the overpayment and whether it would cause undue hardship. This is a crucial first step because it enables the beneficiary to potentially avoid making repayments.

By addressing the waiver first, the beneficiary can establish their financial situation and circumstances that may justify the waiver before delving into the more complex reconsideration process. The reconsideration process typically involves reviewing the decision that led to the overpayment, which can be time-consuming and may not necessarily address the beneficiary's immediate financial concerns. Therefore, seeking a waiver first allows for a more effective handling of the overpayment situation, and it streamlines the process of resolving financial hardship caused by the overpayment.