SUMMARY: We are increasing the maximum dollar amount limit for fee agreements approved under sections 206(a)(2)(A) and 1631(d)(2)(A) of the Social Security Act to $6,000. Effective June 22, 2009, decision-makers may approve fee agreements up to the new limit provided that the fee agreement otherwise meets the statutory conditions of the agreement process.
FOR FURTHER INFORMATION CONTACT: Marg Handel, Office of Income Security Programs, phone (410) 965-4639, e-mail: marg.handel@ssa.gov.
SUPPLEMENTARY INFORMATION: The Social Security Act (Act) provides a streamlined process for a representative to obtain approval of the fee he or she wishes to charge for representing a claimant before the agency. See, §§ 206(a)(2)(A) and 1631(d)(2)(A) of the Act, as amended by the Omnibus Budget Reconciliation Act (OBRA) of 1990, Public Law No. 101–508, § 5106. To use that process, the representative and the claimant must agree, in writing, to a fee that does not exceed the lesser of 25% of past due benefits or a prescribed dollar amount. OBRA of 1990 set the initial fee amount at $4,000 and gave the Commissioner the authority to increase it periodically, provided that the cumulative rate of increase did not at any time exceed the rate of increase in primary insurance amounts since January 1, 1991. The law further provided that notice of any increased amount shall be published in the Federal Register. On January 17, 2002, we published a notice raising the maximum fee to $5,300. With this notice, we announce that the maximum dollar amount for fee agreements will increase to $6,000. This increase does not exceed the rate of increase provided in OBRA of 1990. We believe this increase will adequately compensate representatives for their services while ensuring that claimants are protected from excessive fees. A decisionmaker may approve fees up to the new amount effective June 22, 2009. This effective date will ensure adequate time to provide training and guidance to our employees and to make necessary changes in our information technology infrastructure.
Feb 3, 2009
Fee Cap To $6,000 -- Effective June 22
This notice will be published in the Federal Register tomorrow (update: here's the link to the notice as actually published in the Federal Register):
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7 comments:
Good to see attorneys are getting their stimulus payments. 13% increase and I remember you crying about the user fee going up a couple dollars.
"The "user fee" deducted from payments of fees for representing Social Security claimants has now gone up to $79. This was effective for fees authorized on or after December 1. The maximum fee that may be paid an attorney was not adjusted for inflation, however, meaning that the net fee paid to attorneys for representing Social Security claimants was decreased due to inflation."
I wonder how much money John Lewis was given from Social Security attorneys and their organization.
"Representative John Lewis of Georgia has introduced H.R. 7285 on Social Security attorney fees."
"It is way too late for action on the bill in this Congress, but Representative Lewis will presumably reintroduce the bill in the next Congress, which convenes on January 3."
Attorney fees are too hight as it is, considering the mininal amount of work necessary to win a DIB case these days.
A more realistic fee cap would be $1,500. Or, better yet, SSA should get out of the fee business altogether.
SSDI is an attorney racket. SSA should never started withholding fees, but attorneys make the laws, not claimants. A 13% increase in outrageous.
Attorneys would be very happy to use the same system used in insurance settlements and in tort cases across the board --
No limitation for an attorney fee or percentage other than what the traffic will bear, and settlements made to the attorney for disbursement. Attorneys would be overseen by the local bar associations as in all other areas of the law. Oh, and get rid of non-attorneys and corporations posing as attorneys practicing law. Fair enough?
"No limitation for an attorney fee or percentage other than what the traffic will bear, and settlements made to the attorney for disbursement."
So rape people more than you already do for minimal work.
"Attorneys would be overseen by the local bar associations as in all other areas of the law."
Foxes watching the chickens
"Oh, and get rid of non-attorneys and corporations posing as attorneys practicing law."
So you want what the market will bear, but no competition.
Comments that say the fee is too high should understand it is a contingency with a cap. That means the attorney works for free unless he wins your case. Would you rather do it yourself...go right ahead. Would you prefer to pay some other way like by the hour pay as you go? Who can afford that? Look the fee is capped and if you want to save then don't hire the lawyer.
The Fee Agreement is capped, so if attorneys want more money, file a Fee Petition and justify your fee.
I think most would rather take the money and run with the Fee Agreement, since they won't or can't justify their fee.
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