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What to Know for Wednesday, July 1st, 2026: |
1: Court to review settlement for 90,000+ veterans whose disability appeals wrongly closed by VA computer error — back pay available |
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Freund v. Collins class action: federal court hearing Aug. 3 to approve settlement for 90,000+ veterans, survivors with claims closed 1990-2025: VACOLS computer system malfunction erroneously closed thousands of disability appeals for decades — veterans never received final decision from Board of Veterans' Appeals or notification that claims closed — improperly marked claims as inactive/dormant despite proper filing, or closed due to VA processor failures (unscanned documents, incorrect dates, misidentified paperwork). VA committed to manually audit 28,000 wrongly closed files, notify 64,000+ veterans, reactivate valid legacy appeals: Under proposed settlement, VA will process approved old claims as if never closed — veterans awarded compensation back to original filing date, potentially decades earlier — surviving dependents can keep deceased veterans' claims active — old claims requiring review need updated medical information and disability rating. Veterans should not ignore settlement notices — may be only signal claim wrongly closed — seek advocate, attorney, veteran service officer help: Veteran representative Jim Fausone: "To system, it looked like nothing filed. To veteran, it was silence" — if receive notice, respond immediately even for very old appeals — settlement corrects past administrative failures, not creating new benefits — fairness hearing Aug. 3 will make settlement legally binding.
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➜ Read the full article from Stars & Stripes here. |
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2: SNAP payment error rate 10.6% ($10B+) characterized as fraud by Trump admin, but experts distinguish errors from intentional wrongdoing |
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Trump administration cites 10.6% payment error rate as evidence of $10B+ waste — but errors mostly unintentional mistakes, not fraud: USDA reports SNAP error rate nearly double 6% threshold under 2025 OBBBA — $95.7 billion in benefits, ~10% improper payments — Trump admin characterizes as "fraud, waste, abuse" — but GAO and experts clarify payment errors occur when households receive too much/little regardless of intent, while fraud involves deliberate deception (EBT skimming, illegal benefit sales for cash) — SNAP quality control expert: errors "mostly unintentional because policy very complex" with many reporting requirements households unaware of. States facing $9B+ cost-sharing burden starting October 2027 — 40 states above 6% threshold must pay 5-15% of benefit costs: Alaska highest error rate at 23%, South Dakota lowest at 2.5% — states with 6-8% pay 5%, 8-10% pay 10%, over 10% pay 15% of costs — forces difficult choices: raise taxes, cut law enforcement/education, or withdraw from program entirely — 11% of state SNAP agencies identified program withdrawal as potential risk; APHSA survey shows states redirecting fraud-reduction staff to error-reduction work. SNAP enrollment already dropped 5 million (to 37M) due to work requirements — cost-sharing adds pressure for further cuts: Enrollment declined since OBBBA signed July 2025, with stricter work requirements for adults under 64 — cost-sharing provisions could force states to narrow eligibility or leave program — governors requesting 2-year delay to implement changes; experts warn widespread impact on food security, school focus, wellness outcomes. P.S. — The government's own data shows billions in SNAP payment errors, and if you're on EBT, it's worth knowing exactly which discounts and protections you're entitled to. The Ultimate EBT Discounts Guide for 2026 walks you through that → Get the guide here.
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➜ Read the full article from CBS News here. |
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3: IRMAA: High-income retirees face Medicare surcharges of $81-$91+/month based on 2-year-old income — brackets work like cliffs |
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(Image Credit: Getty Images) |
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2026 Medicare Part B/D IRMAA based on 2024 MAGI using cliff-bracket system — one dollar over threshold jumps to higher tier: Standard Part B premium $202.90/month for MAGI ≤$109,000 single/$218,000 married — single $109K-$137K pays $284.10/month Part B + $14.50 Part D surcharge — escalates to $689.90 Part B + $91 Part D at $500K+ single/$750K+ married — surcharges accumulate monthly over decades, potentially totaling tens of thousands in avoidable costs. Two-year look-back means stock sales, business exits, Roth conversions, RMDs in 2024 trigger 2026 surcharges even if current income lower: High-income professionals caught off-guard by Medicare surcharges because assume separate from tax planning — stock options, real estate gains, compensation payouts inflate MAGI and increase premiums years later — IRMAA rarely largest retirement expense but signals income plan creating avoidable taxes and reduced flexibility. Can request new IRMAA determination via Form SSA-44 for qualifying life changes: retirement, work reduction, death of spouse, loss of income: Tax-planning strategies reduce IRMAA exposure: maximize 401(k) contributions ($24.5K + $8K catch-up 50+), utilize HSAs, Roth conversions pre-Medicare age, tax-loss harvesting, charitable giving, qualified charitable distributions if 70.5+ — integrated financial planning coordinating income, Roth conversions, capital gains, SS decisions preserves wealth and avoids overpaying Medicare premiums.
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➜ Read the full article from Forbes here. |
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Here’s What You Missed on YouTube: |
Check out our new YouTube videos for Wednesday, July 1st. |
Divorced? Social Security May Owe You Hundreds Each Month |
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Divorced? Social Security May Owe You Hundreds Each Month |
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This newsletter is for information only. Always confirm your options directly with Social Security, Medicare, Medicaid, or a qualified advisor before making big decisions about your benefits. |
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