On March 29th the Social Security Administration announced that they plan to raise the fee cap for claimants’ representatives from $7,200 to $9,200. What does that mean for people who are getting ready to apply for Social Security benefits? Here’s what you need to know about the fee cap that is coming in the fall of 2024.
What Is The Fee Cap?
The fee cap set by the Social Security Administration limits the amount of money that a lawyer can receive if you have a Social Security lawyer working with you to help you apply for Social Security benefits.
The last time that the fee cap was raised was in November of 2022, when the cap was raised from $6,000 to the current cap of $7,200. Before the increase in 2022 the cap stayed the same for thirteen years. The current increase will reflect changes in inflation and the costs of services that have occurred in the last few years.
It’s recommended that people who are filing a claim for Social Security benefits work with a Social Security attorney who has experience with claims to make the process go more smoothly. You have a much better chance of getting your claim approved if you have help from a Social Security lawyer.
When Will the Change Take Place?
The official announcement that the Social Security Administration is raising the fee cap for claimant representatives came in the SSA’s April newsletter and in an official press release. The cap raise will go into effect in the fall, on a date that has yet to be announced. The last fee cap increase went into effect in November of 2022, so it’s possible this cap increase will be effective in November of 2024.
How Are Fee Caps Paid?
Fee caps are paid out from the past-due benefits that a claimant receives once their application for benefits is approved. You will receive any past-due money within 60 days of the approval. Past-due money, or back pay, is the money that accrues while you are waiting for approval.
For example, if you file for Social Security benefits in January, but your claim isn’t approved until June, you will receive back pay from the date that you filed until the date the approval is given.
You will never have to pay up-front or pay out of pocket to have a Social Security lawyer represent you. Lawyer’s fees are taken out of the back pay that you receive from the SSA. If your claim isn’t approved, you won’t have to pay anything.
Will Every Fee Be $9,200?
No. $9,200 is the maximum amount of money that your lawyer will receive. The fee cap states that your lawyer will receive up to 25% of your back pay or $9,200, whichever is the lower number.
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*Disclaimer: The content of this article serves to provide information only. It is not to be construed as legal advice. If you file a claim against Marriott, or any other party, you may not be entitled to any compensation.
Source:
https://www.ssa.gov/news/press/releases/2024/#3-2024-6
