Social Security has posted final numbers showing total fees paid to attorneys for representing claimants in 2021. Let's do a comparison with the last two years:
- 2019: 390,809 fees were paid for a total of $1,214,557,861.
- 2020: 360,493 fees were paid, down 8% from 2019. The total fees paid were $1,081,523,523, down 11% from 2019.
- 2021: 296,847 fees were paid, down 18% from 2020 and down 24% from 2019. The total fees paid were $932,887,938, down 14% from 2020 and down 23% from 2020.
One big problem is that even though the number of new claims filed has gone down significantly, the number of clients at Social Security law firms hasn't gone down much because cases are so piled up at the initial and reconsideration levels, not to mention the huge backlogs of claimants waiting to be paid after favorable decisions. Our workloads are still there even though our gross receipts have plummeted. There are fewer hearings but more effort expended trying to make sure Social Security does what it is supposed to do. In the current environment many cases get sidetracked for months. Some get lost. Overwhelmed agency employees do little to sort out these problems. Social Security employees may get tired of lawyers repeatedly contacting them about cases but if you're on the receiving end, it's impossible to tell a case that's just in a backlog pile from one that's not even in the pile.
Contrary to what many Social Security employees may think, representing Social Security claimants is a high overhead, low profit margin business in the best of times. Everybody need normality at Social Security. Social Security attorneys also need and deserve a cost of living adjustment in the maximum attorney fee under the fee agreement process.
We are contemplating petitioning for writs of mandamus. There are notices of award yet to be issued for greater than 6 months in some cases and the field office and processing centers are saying the other one is responsible.
ReplyDeleteTitle II hearing awards are processed by PC. Title XVI by the field offices.
DeletePreach on, Charles. The percentage drop in fees nationally roughly mirrors our practice. This is coupled, however, with a marked increase in new client acquisition the last two years. We're just staring at a large and increasing stack of claims just sitting at the initial app and recon levels. It's not uncommon for a case to take 18 months to get through initial app and recon denials. As we see this stack slowing moving through recon now, we anticipate hearing totals to pick back up the second half of the year. If this is the experience for other offices, is OHO ready? Running an SSD focused law firm forces one to learn how to manage ups and downs, but this disruption is unprecedented. Yes, we're anxiously waiting for some normalcy to return.
ReplyDeleteWell said - appreciate you covering this. This was the worst year in terms of average fee/favorable hearing our firm has experienced since its founding 10+ years ago. # of hearings was down too which impact at least. 3Q's of revenue but hearing volume has recovered due to new client grow and we hope to see small gains in future revenue. Yes, new client intake is up signficantly (36% for us YOY) but not at a rate that will compensate for the multiplier effect of lower average fees and the reduction in new hearings. If you haven't seen it in your practice yet, you will. Not sustainable.
ReplyDeleteI am not in this for the money, but I need some money to keep things going. Revenue from 2019-2020 was down over 30% and from 2020-2021 increased by only 2%. Things are getting tougher every day.
ReplyDeleteAnd you know that when the backlogged cases start getting processed and reps get higher fees per case (even if the claimant and rep submit evidence and forms quickly and accept a phone hearing, the average case is taking several months longer to get to OHO because DDSs are so slow) the reps are going to get cast as greedy.
ReplyDeleteI have sought mandamus 1x on a 406(a) fee where the approved fee was wrongfully released to the claimant who of course refused to pay me. It worked. I am now compiling a long list of 406(a) cases where I have not been paid after a prohibitive period of time. I'm working under the presumption since I am the moving party I can include all cases where fees remain unpaid. Please comment if this is correct.
ReplyDeleteAnd I have successfully used motions to compel where406(b) approved fees have not been paid w/in a relatively reasonable period of time.
I'm getting lots of complaints about how slow things are going with cases piling up at the reconsideration level. My earnings are way down.
ReplyDeleteCash flow has been terrible the last few months. Looking for other work to be honest and at this point would just like to close shop and move on to something that has nothing to do with SSA.
ReplyDeleteWell said, Charles.
ReplyDeleteLike I have said before, my firm Trajector Disability and the top 4 Social Security disability firms in the U.S. represent like 10 percent of the market. There are plenty of claimants out there. We have plenty of work right now. But like you said, there is a HUGE logjam at the initial and DDS level. Covid will only make it worse.
They need to do this quick:
1. Eliminate the nonsensical reconsideration phase (at least temporarily) that has like a 20 percent success rate.
2. Eliminate the fee cap so keep it at 25 percent. This also may entice more attorneys to get involved.
3. Eliminate the nonsensical 5-month waiting period to entice more non-SSD/SSI attorneys to help out.
4. Eliminate the bogus 5-day medical record rule instituted in July 2020 about 3 months after Covid hit in April 2020.
ALJs and SSD/SSI attorneys are soon going to be twiddling their legal thumbs at home hoping the SSA adjudicates these cases in a more timely manner. But the SSA won't do it.
It is too smart.