Jun 16, 2007

Attorney Fee Payments

Social Security has released its attorney fee payment numbers for May 2007. Below, I have reproduced the numbers for this year.

Let me explain why these are significant for people other than attorneys. These are the only numbers that Social Security releases showing how well or how poorly its payment centers are functioning. The payment centers are Social Security's back office. They are where the actual work of authorizing payment of Title II Social Security benefits is done. Regardless of what happens in other parts of Social Security, no one gets Title II Social Security benefits until a payment centers does its job. Attorneys who represent Social Security claimants get paid at about the same time as their clients, so these numbers reflect what Social Security claimants are experiencing.

When you look at these numbers, you see dramatic fluctuations in attorney fee payments. This is a direct reflection of dramatic fluctuations in payments to claimants. These dramatic fluctuations occur because the payment centers are under stress. They lack sufficient personnel and they are being called upon to backup other parts of the Social Security Administration, particularly the teleservice centers. When calls to Social Security's 800 number spike up, the payment centers get "spiked" as they put it -- called away from their regular duties to answer the telephone -- which they do poorly. The payment centers get spiked badly in January and February of each year, because of seasonal fluctuations in the number of calls to the 800 number, but, in general, spiking is becoming more frequent because the teleservice centers are understaffed. Since the payment centers are also understaffed, the result is more backlogs and delays in payment of benefits.

The payment centers are not sexy. No one is going to pay much attention to the payment centers unless they completely break down, in which case all hell breaks loose. My understanding is that the payment centers are under enough stress that a breakdown is not inconceivable.

Fee Payments

Month/Year Volume Amount
Jan-07
15,331
$55,149,991.81
Feb-07
19,301
$69,731,683.72
Mar-07
26,505
$94,396,916.02
Apr-07
26,889
$96,650,134.82
May-07
24,429
$86,625,391.60

Fee payments also include payments made to eligible non-attorneys participating in the demonstration project authorized by section 303 of the Social Security Protection Act of 2004 (Pub. L. 108-203).

1 comment:

Anonymous said...

You say "Regardless of what happens in other parts of Social Security, no one gets Title II Social Security benefits until a payment centers does its job." This is only true for appeals and some complex cases. Claims approved at the intitial claim level are nearly all authorized by the local field office and are never seen by anyone in the payment centers.