Nov 10, 2009

Social Security Owes $160 Million To Massachusetts?

From the Boston Herald:

Massachusetts is owed $160 million from the federal government for a little-known Social Security policy that’s been erroneously overlooked for 35 years, according to Gov. Deval Patrick’s top health and human services adviser.

At issue is the way the Social Security Administration handles disability claims. Health and Human Services Secretary Bigby said the federal agency often declines applications for disability payouts on an applicant’s first attempt. However, if an applicant appeals the rejection, the state then covers health care costs for that person until the matter is resolved. If the applicant is ultimately approved, the SSA is supposed to reimburse the state for that interim coverage.

“We’re one of the first states that brought it to their attention,” Bigby said in a phone interview. “We are pushing for a mechanism to get that money back to the state.”

Noting the SSA has acknowledged the error, Bigby said U.S. Sen. Jay Rockefeller, Democrat of West Virginia, attempted to get a provision into the Senate’s national health reform bill that would reimburse Massachusetts and 30 other states.

“That measure was not accepted,” she said. “We just need the SSA to develop a methodology to pay us.”

2 comments:

Anonymous said...

All they have to do is wait in line behind the hundreds of thousands of claimants waiting for a hearing decision, and the millions more t2 and t16 benes who have not been paid what they are due for the past 20-25 years due to inadequate staffing. Be right with you, Massachusetts.

Anonymous said...

Meanwhile they'll furlough their DDS employees.