Jul 31, 2023

A Message To Staff From The Acting Commissioner

Sent: Wednesday, July 26, 2023 1:57 PM

To: A Message to All SSA and DDS Employees

Subject: President to Nominate Martin O'Malley as SSA's Commissioner

Today, President Biden announced his intent to nominate the Honorable Martin O’Malley as SSA’s Commissioner.  Governor O’Malley’s previous public service positions include the Mayor of Baltimore and the Governor of Maryland.  If confirmed by the Senate, Governor O’Malley would bring a wealth of experience in running a large and complex government agency. 

I will remain the Acting Commissioner through the confirmation process.  I look forward to continuing to lead this amazing agency and making progress on service improvements.

As always, thanks for all you do.

Kilolo Kijakazi, Ph.D., M.S.W.
Acting Commissioner

Jul 30, 2023

NADE Newsletter


      The National Association of Disability Examiners (NADE), a voluntary organization of personnel who make initial and reconsideration determinations on Social Security disability claims, has issued its Summer 2024 newsletter.  To be honest, there’s not a lot of news in it but NADE members deserve a shoutout. It’s a tough job. I wish they’d approve more claims but if the truth were known they’d probably agree. Don’t blame them. The problem is much higher up.

Jul 29, 2023

Summary Of AFGE Contract With SSA

     The American Federation of Government Employees, the biggest labor union representing Social Security employees has released a summary of its recent contract with the agency. Read it and you may develop a greater appreciation for the nitty gritty issues that have to be worked out in a labor contract. Lactation may not be your issue but for some agency employees it’s a very big deal. Labor unions exist to help their members deal with issues that an employer may find inconvenient.

Jul 28, 2023

Another Set Of Proposed Regs To Decrease The Number Of SSI Recipients Charged For In-Kind Support And Maintenance

     Social Security has asked the Office of Management and Budget to approve proposed regulations to:

We propose expanding the definition of a Public Assistance (PA) Household to include additional means-tested assistance programs. This will decrease the number of applicants and recipients charged in-kind support and maintenance, which will simplify living arrangement development within the Supplemental Security Income (SSI) program.

    This has to be approved by OMB and then published in the Federal Register for comments. The agency must consider the comments and possibly revise the proposal. Then they must again obtain approval from OMB before it can again be published in the Federal Register as a final rule. This can easily take two years or more. If a Republican is elected President in 2024, this proposal may die.

Jul 27, 2023

Appropriations Bill Advances

     The Senate Appropriations Committee is working on the FY 2024 Labor-HHS Appropriations bill. Their Labor-HHS subcommittee reported out a bill that includes a $292 million increase over the FY 2023 appropriations. This is lousy but ahead of the House bill which included a small cut in the appropriation for Social Security. The House bill is preposterous for reasons that go well beyond Social Security. It's no starting point for negotiations.

    Keep in mind that there will probably be an "emergency" appropriations bill, probably early next year. Extra money for the Social Security Administration in that bill is a distinct possibility.

Security Guard Assaulted With Knife -- But It May Have Been A Personal Matter

     From WKBN:

A security guard at the Neshannock [PA] Social Security office is recovering after police said he was attacked with a knife.

It happened just after 12:30 p.m. Wednesday.  

On the way to the scene, police learned the suspect was walking away from the plaza. They arrested Glenn Samuels Junior without incident.

The victim was sent to the hospital with lacerations to his head.

Samuels was arraigned on three counts of aggravated assault.

Police said the victim and suspect are related.

Martin O'Malley's Positions On Social Security

     Back in 2015 Martin O'Malley was running for President. He didn't get very far but he did take these positions on Social Security:

  • Increase Social Security benefits. O'Malley proposed increasing minimum Social Security benefits to 125% above the poverty line and raising benefits for low- and minimum-wage workers, who the governor claims currently don't receive enough benefits and often don't have any retirement savings at all.
  • Raise the cap on the payroll tax for workers making more than $250,000 a year. O'Malley claimed that raising the payroll tax — along with raising the minimum wage and enacting immigration reform — will pay for many of his proposed reforms.  ...

    Please remember that as Commissioner, O'Malley would have no ability to adopt such plans. Congress has to do that. As Commissioner, he probably couldn't even lobby for such plans. That seems to be an unwritten rule these days. It's not always been that way, though. I've read the autobiography of Arthur Altmeyer, the first Commissioner of Social Security and an extremely important figure in the history of Social Security in this country. As Commissioner, Altmeyer was engaged in lobbying Congress almost full time. Other people were actually running the agency. By the way, I do not recommend reading the Altmeyer autobiography. It's really dry and tedious.
     Also by the way, the White House has lined up quite a number of endorsements for O’Malley’s nomination but none from Republicans.

Jul 26, 2023

O'Malley Nominated To Be Commissioner Of Social Security


     From the Washington Post:

President Biden announced Wednesday that he will nominate former Maryland governor Martin O’Malley to lead the Social Security Administration, as the agency faces enhanced scrutiny over new management failures.

O’Malley, who ran for the Democratic nomination for president in 2016, would oversee an embattled agency...

Fee Payments Have Declined

     Social Security's Office of Inspector General (OIG) has issued a report on payments to attorneys and others for representing claimants before the agency. The data was already available but they've added charts. Below are a couple of them.




Jul 25, 2023

Can't Say Whether Some Automation Projects Have Helped

      From Manual Processes for Resource-intensive Workloads, a report by Social Security's Office of  Inspector General

Our objective was to determine whether the Social Security Administration’s (SSA) automation enhancements (1) reduced manual processing for resource-intensive workloads and (2) were cost-effective. ...

SSA’s automation enhancements reduced the need for manual processing for some workloads from FYs 2019 to 2021. These initiatives aimed to improve the efficiency and effectiveness of SSA’s operations; however, they were not always immediately cost-effective. Additionally, SSA could not identify cost or savings estimates for some enhancements; thus, we could not determine whether they were cost-effective.  ......


Jul 24, 2023

Deaths During Waiting Period

     From a recent report by Social Security's Office of Inspector General (footnotes omitted):

This report provides information on 610,219 Disability Insurance (DI) beneficiaries whose claims were approved at the initial claim level by various state disability determination services (DDS) during Calendar Years (CY) 2020 and 2021. In each case, disability examiners (1) determined the beneficiaries had disabling conditions that were permanent and that medical improvement was not expected, and (2) established a 7-year medical review diary. As of December 22, 2022, SSA had terminated the DI benefit payment status of only 319 (.05 percent) beneficiaries after determining they were no longer disabled. However, SSA had terminated the payment status of 75,857 beneficiaries who died after SSA approved their claims, including 4,444 beneficiaries who died during the 5-month DI waiting period. ...
Click on image to view full size

 

Jul 23, 2023

CCD Comments On Proposed Regs

  


   The Consortium for Citizens with Disabilities (CCD), a large umbrella organization of non-profits who aid the disabled, has filed comments on Social Security's proposed changes in its regulations on manner of appearance at hearings. Their most important comment is to oppose changing the default manner of holding hearings from in-person to telephone. Now, if you don't specify, you get an in-person hearing. The proposed regulation would flip that.

Jul 22, 2023

ALJ Levinson Removed From Job


    
Social Security
wanted to fire Administrative Law Judge Michael Levinson of Macon, GA for some very unjudicial conduct. The Merit Systems Protection Board (MSPB) has jurisdiction over this kind of matter. An MSPB ALJ decided to suspend Levinson from his job as an ALJ for 2 years and to downgrade him in rank. Both Levinson and Social Security appealed to the full MSPB which changed Levinson's penalty to what Social Security wanted, firing.

    It's a tiny minority of ALJs who behave as Levinson did but we have to get them out of their jobs. I'm shocked that the MSPB ALJ thought that anything less than firing was appropriate. The behavior here was way beyond the pale.

    By the way, Levinson approved claims at a somewhat higher rate than most ALJs. Would things have proceeded differently if Levinson had a low allowance rate?

Jul 21, 2023

The Appropriations Situation

 


    From Yahoo News:

As Republicans start laying out their proposals for what spending to cut next year, Social Security Administration employees are warning that their budget could mean longer wait times and potentially dire circumstances for beneficiaries.

In a letter to the House Appropriations Committee, the American Federation of Government Employees — a union representing hundreds of thousands of government employees — said that the GOP's proposed funding levels would "devastate the agency's ability to serve the American public."

Republicans on the committee released their Labor, Health and Human Services, Education, and Related Agencies Appropriations Bill last week, including a $183 million cut to the Social Security Administration.

The union warned that the already underfunded agency could see its standing issues, like long wait times for accessing benefits and long lines at its offices, only worsen. As of June 2023, the average wait time for callers to Social Security's customer service and information number was a little over 43 minutes, per the Social Security Administration's data. ...

    I think that we should not worry too much about what the House Appropriations Committee is doing now. The bill they're working on is absurd for many, many reasons that go way beyond Social Security. I'm not sure the bill could get a majority vote in the House of Representatives. It's a non-starter with the Senate and the President. A government shutdown would be a far superior outcome. Nothing like that bill is going anywhere.

    I see three possible outcomes:

  • Republicans eventually decide to vote out an appropriations bill based upon the previous agreement between the President and the Speaker of the House. Differences are sorted out between the Senate and House and the President signs the bill. We don't seem to be heading in this direction.
  • There's no agreement on a Labor-HHS appropriations bill (which includes Social Security's administrative budget) and we see endless continuing resolutions for the entire fiscal year. This hurts Social Security but there are worse possibilities. I think this is the most likely outcome but what do I know?
  • There's no agreement and the House of Representatives is so dysfunctional that it can't pass a continuing resolution so there's a government shutdown. This would be politically disastrous for Republicans but, hey, if you're a Republican members of Congress from a district that Donald Trump carried by 30 point in 2020 (like most House Freedom Caucus members), what do you care? Your constituents expect you to be as obstreperous as possible. They're in the "Keep Government Out Of My Medicare" camp.

Why Is Gail Ennis Still In Office?

Gail Ennis

     From the Washington Post:

A top Senate Democrat is demanding answers from Social Security’s embattled watchdog about allegations of low productivity, poor morale and retaliation against whistleblowers in her office.

In an 11-page letter sent this week, Senate Finance Committee Chairman Ron Wyden (D-Ore.) said his committee had received complaints from current and former employees in the watchdog division of a hostile work environment, hiring abuses, misuse of federal money and “falling productivity.”

“I write to express my concerns regarding your performance as Inspector General,” Wyden wrote. “It is paramount that the Office of Inspector General cultivates and maintains a workplace free of harassment, intimidation, or retaliation.” ...


Jul 20, 2023

SSA And Labor Union Come To Agreement


     From Government Executive:

The Social Security Administration and the nation’s largest federal employee union on Wednesday announced that they had reached a preliminary agreement to update a portion of their collective bargaining agreement and extend the deal until 2029 ...

Although labor-management relationships at federal agencies often vacillate between collaborative and oppositional depending on which political party controls the White House, Social Security management has had a reputation for having at best strained relations with the agency's unions regardless of who’s in charge. And the first two years of the Biden administration were no exception, with officials from the American Federation of Government Employees frequently sparring with management over issues like post-COVID-19 reentry to traditional office spaces, training and benefits aimed at retaining employees during the agency’s ongoing staffing crisis. ...

The updates include a number of immediate tweaks to current policies as well as an avenue for the parties to work collaboratively to find long-term solutions to improve working conditions.

Key to the effort is the establishment of new union-management cooperation councils, both on the national level and for each agency component with a corresponding AFGE council. At the national level, the parties will meet six times a year and each council will be co-chaired by agency senior leaders and AFGE officials. ...

On training, which employees and union officials have complained currently consists primarily of “self-paced” training documents and webinars and leaves new employees ill-prepared for their complex workloads, the contract immediately requires management to provide adequate time to attend and complete sessions, including learning about policy changes that may be transmitted to employees via email, and adds a follow-up survey for employees to take six months after a session. Those surveys will then help the new cooperation councils develop a new training regimen that Couture said he hoped would leverage hybrid work technology to create virtual classroom learning. ...

Jul 19, 2023

Now Now. Not Later. Not Ever.

 


    When we're rushed, we cut corners and we make more mistakes than usual. Social Security employees are rushed. They're cutting corners. They're making lots of mistakes. They're putting off difficult work. Even in the best of times, there are some things which didn't get done properly to begin with that need to be corrected but in these terrible times there are many, many of these.

    The stress on Social Security employees isn't going away. They will remain overburdened indefinitely. My firm asks them to straighten out their mistakes but they don't have time to do it. It's getting to the point that I think the work isn't going to get done now. It's not going to get done later. It's never going to get done, at least not in the foreseeable future. 

    What kinds of mistakes or omissions am I seeing? Let me list a few:

  • Claimant's monthly benefits are authorized but nothing is done about paying the back benefits or attorney fees.
  • Claimant receives a small payment that is apparently their back benefits but it seems far too low. No award certificate is issued so the claimant and attorney can't figure out whether there has been a mistake.
  • There's what I call a phantom windfall offset. Claimant filed an SSI claim which was quickly denied on income or resources. When the Title II claim is approved, no back benefits are paid because they're waiting on payment of the SSI benefits so they can do the windfall offset. Meanwhile, no back benefits or attorney fees are paid.
  • A field office employee makes one telephone call to a claimant about implementing SSI benefits. They can't leave a message so they immediately deny the claim for failure to cooperate. (They're supposed to make repeated efforts to contact the claimant and those who may be able to help, such as the claimant's attorney but that takes time, so they just get the claim off their desk by denying it.)
  • A fee petition is approved. That's a little unusual so it doesn't get paid.

    This is a depressing, discouraging situation for an attorney like me who wants to help his clients and who wants to receive the fees he's entitled to for helping them.

    Social Security is undergoing enormous stress. I think it's fair to say it's falling apart. Asking employees to work harder isn't going to solve the problem. The systems updates and IT changes the agency is making hardly help at all. Making employees come into the office every day would make little or no difference. The only solution is a lot more employees, like 10,000 more, but that might cost another billion dollars or so a year so it's out of the question now.

    I don't think the message is getting through to the public or members of Congress about just how bad things are.

    My only suggestion is that the agency should start closing many small field offices, which will mostly be in areas represented in Congress by Republicans. The administration needs to turn a deaf ear to the howls of protest from Republican members of Congress. You get the service you pay for. What's going on now is unsustainable.

Jul 18, 2023

What A Contrast


     Michael Ponsor, a Senior U.S. District Court judge in Massachusetts, has written an op ed for the New York Times titled A Federal Judge Asks: Does the Supreme Court Realize How Bad It Smells?    
    Ponsor relates a couple of incidents from his time on the bench. Once he was having a casual conversation with an attorney who mentioned that he had two tickets to a Major League baseball game that he couldn't use. He asked if Judge Ponsor would like them. Even though he would have loved to take his young child to the game, Ponsor said no even though there was a good chance that the tickets wouldn't be used if he didn't take them. He later talks about another case:

... I issued a decision reversing the Social Security Administration’s denial of disability benefits to an older plaintiff. I was in our clerk’s office one day when the man and his wife approached me with a package. He had a woodworking hobby, and inside the package was an exquisitely crafted oak pencil case with bronze hinges. My ruling had made a big difference for them, and they wanted to extend this modest, personal gesture of gratitude. Again, they were obviously not being underhanded. Their lawsuit was over, and this was probably the last they would ever see of me. Nevertheless, as my police officer friends tell me, the road to perdition starts with a free cup of coffee. As politely as I could, I turned the pencil case down. It still pains me to remember their embarrassed, crestfallen faces. ...

    Contrast Judge Ponsor's appropriate behavior with that with some Supreme Court Justices who have accepted costly vacations and other valuable considerations from people whom they knew had an interest in the work of the Court. Ponsor's the kind of judge I know. Clarence Thomas (to pick the most prominent example) is something else.
    If you're an attorney and you're thinking, "What Justice Thomas has done is wrong but he's a reliable right wing vote on the Supreme Court so we can't force him out of office while a Democrat is in the White House", what is wrong with you? What Thomas has done is what judicial corruption looks like. You know that as well as me. You'd be apoplectic if a Justice appointed by a Democrat had done this and I'd be with you.  We can't accept this behavior from any Supreme Court justice, ever.

Jul 17, 2023

Can We All Agree That Fraud Is Almost Non-Existent In Social Security Disability Claims?

    The Buffalo News has posted the first of a two part article on the delays and difficulties involved in getting approved for Social Security disability benefits. Here's a small excerpt:

... “I do think some legitimate claimants have been hurt by some of the efforts to crack down on fraud, after the Eric Conn case,” said Som Ramrup, president of the American Association of Administrative Law Judges.

Ramrup said she believes the actual amount of fraud in the applications “is infinitesimal.”

“The government acts as though the amount of fraud is much higher,” Ramrup said.

Michael J. Astrue, who headed the SSA under President George W. Bush, told The News he believes “less than 1%” of disability claims are fraudulent. ...

    Let's stop over-reacting to the Eric Conn case. It was a weird, one-off scandal. Nothing like it is likely to ever happen again.

Jul 15, 2023

SSA Issues Long Covid Guide For Docs

     In conjunction with the Department of Health and Human Services, Social Security has created Long COVID: A Guide for Health Professionals on Providing Medical Evidence for Social Security Disability Claims. I had low expectations when I first opened this and was still underwhelmed.

Jul 14, 2023

Six Months In Slammer For Former SSA Employee

     From a press release:

The U.S. Attorney’s Office for the District of Colorado announced Justin Skiff, age 36, of Castle Pines, was sentenced to six months in prison for wire fraud, social security fraud, and money laundering.

According to the plea agreement, beginning around August 2019 and continuing through September 2021, Skiff used his position as a claims specialist with the Social Security Administration (SSA) to fraudulently obtain money from the SSA.  Skiff used his knowledge and access to establish Social Security Numbers for ten fictitious children. He then established fictitious records of entitlements for surviving child benefits which he connected to the record of a real deceased individual.  These benefits were deposited into a bank account accessible to Skiff through debit cards he directed to be mailed to a P.O. Box to which he had access.  Skiff withdrew money and made purchases from this account from October 2019 through September 2021 for a total amount of $324,201.44. ...


Jul 13, 2023

OHO Numbers

     Operating statistics for Social Security's Office of Hearings Operations recently posted by the agency:

Click on image to view full size


Jul 12, 2023

Congressional Hearing Today


     A press release:

There will be a Hearing of the Committee on the Budget 

On: Wednesday, July 12, 2023, 10:00 AM 

In: Room SD-608. 

To consider: "Protecting Social Security for All: Making the Wealthy Pay Their Fair Share"

Witnesses


  1. The Honorable Phillip Swagel, Ph.D.
    Director
    Congressional Budget Office
     
  2. Mr. Stephen C. Goss
    Chief Actuary
    Social Security Administration
     
  3. Ms. Kathleen Romig
    Director of Social Security and Disability Policy
    Center on Budget and Policy Priorities
     
  4. Ms. Amy Hanauer
    Executive Director
    Institute on Taxation and Economic Policy
     
  5. Dr. Andrew G. Biggs, Ph.D.
    Senior Fellow
    American Enterprise Institute

Jul 11, 2023

New Upload Documents Service

     From Emergency Message EM-23041 issued yesterday:

This Emergency Message (EM) notifies technicians of a new online service option called Upload Documents that customers can use to electronically submit certain technician-requested evidence and forms. Technicians will initiate the request through the Technician Experience Dashboard (TED). ...

We will release Upload Documents on July 8, 2023. The initial rollout will be limited to the Boston Region offices using TED.

Upload Documents can be used to serve Title II, Title XVI, and Title XVIII beneficiaries, as well as individuals who do not currently receive benefits from SSA.

Initially, technicians will be able to use Upload Documents to request a small number of forms that do not require a signature (Section F). During release 2, we will update Upload Documents to include additional forms, including some forms requiring a signature. Customers will be able to sign and submit these forms using Upload Documents’ electronic signature (“eSignature”) functionality. We will discuss the eSignature process for Upload Documents in a future EM.

Upload Documents will also allow technicians to request certain pieces of evidence. ...

... TED is a new technician-driven SSA interface that will help modernize and streamline our interactions with customers.

When a technician determines that SSA needs a certain form and/or evidence that is on the list of items currently accepted for Upload Documents, the technician can initiate the request using TED. Before initiating the request, the technician will first contact the customer regarding the request, offering the use of Upload Documents. If the customer is interested in using Upload Documents to submit the requested evidence or form, the technician will obtain the customer's consent to receive a one-time email from SSA, containing an access link and instructions for Upload Documents. The technician will be able to view a customer’s previously registered mySSA email address, where applicable. The customer can choose to receive the one-time Upload Documents email at the previously registered email address, or at a different email address. If the customer consents to receive a one-time Upload Documents email, the technician should verify the customer’s preferred email address. The technician will then select the forms and evidence that are needed from the customer within TED (see screenshot below). ...

    It says something, doesn't it, that this is named for the "technician experience" rather than the claimant or customer experience.

    Are they still going to insist on calling the claimant to ask "Is this really your signature?", which defeats the whole point of using an online system for uploading documents? I wonder how often claimants say "No, I didn't sign that." Maybe, never. You have to be careful but you don't have to be paranoid.

Jul 10, 2023

If Congress Wants Better Service At Social Security, It Needs To Give The Agency A Greater Operating Budget

     From the testimony of Chad M. Poist, Deputy Commissioner for Budget, Finance, and Management, Social Security Administration, before the Committee on Oversight and Accountability, Subcommittee on Government Operations and the Federal Workforce

Click on image to view full size

 

Jul 9, 2023

Age At Which Workers Claim Social Security Retirement Benefits

      From The Motley Fool:

  • Age 62: 29.3%
  • Age 63: 7.4%
  • Age 64: 8%
  • Age 65: 12.7%
  • Age 66: 24.7%
  • Age 67: 3.9%
  • Age 68: 2.3%
  • Age 69: 2.1%
  • Age 70 (or above): 9.6%

Jul 7, 2023

Dropped Calls

    From The Social Security Administration’s Telephone Service Disruptions, a report by Social Security's Office of Inspector General (OIG):


 

Jul 6, 2023

A 25% Reduction In Social Security's Operating Budget?

     The House Appropriations Committee has voted along party lines for Subcommittee allocations, that is the amount that each Subcommittee will have to allocate among the agencies within its purview. This is for the Fiscal Year (FY) 2024 appropriations bills. As the Consortium for Constituents with Disabilities (CCD) points out, the allocation for the Labor-HHS Subcommittee which has responsibility for the Social Security Administration's Limitation on Administrative Expenditures (LAE), the equivalent of an appropriation for an agency that takes its money from a trust fund, is 25% below the current FY. The Subcommittee can then allocate the pain among the agencies covered by the Labor-HHS appropriation bill.

    As you may recall, the President and the Speaker of the House of Representatives earlier agreed to overall budget limits that were only a little below the current fiscal year. So why is the Labor-HHS allocation so low? The Republican leadership in the House of Representatives decided that they weren't bound by their agreement with the President.

    A 25% reduction in Social Security's operating budget would mean massive RIFS at Social Security and an almost completely non-functional agency -- an unmanageable situation.

    It is far from clear that the House of Representatives could pass an FY 2024 Labor-HHS appropriation bill that is 25% lower than the current fiscal year. It certainly couldn't pass the Senate or receive the President's signature. So they would negotiate, right? The President has little incentive to negotiate with leaders who refuse to be bound by agreements they have made.

    We may be heading towards a year long Continuing Resolution (CR), which means that Social Security could spend money at the same rate as in FY 2023. There are worse things that could happen.

Jul 5, 2023

Catch 22


     Let's say you're developmentally disabled, meaning you've been disabled from birth. You start drawing SSI as a child due to your disability. You become 18 and Social Security does a review to see whether you're disabled under the adult standard and they decide you are. Then, a parent dies or goes on Social Security benefits when you're 21. That potentially entitles you to Disabled Adult Child (DAC) benefits on your parent's Social Security number since you became disabled before age 22. Shouldn't Social Security just put you on the DAC automatically? You've already been found disabled under the same standard. Under a new addition to Social Security's POMS manual, the answer is not so fast. They first want to make sure they can't find a way to cut you off the SSI benefits you're already drawing. So, if you're the claimant aren't you a little afraid you're going to lose your sole means of support if you file that DAC claim? But, if you don't file the DAC claim, you may lose your SSI because you refused to avail yourself of means of support other than SSI. Nice Catch 22 they've set up for you. That's what all this fancy talk about collateral estoppel is about, finding ways to cut claimants off benefits, or, really, finding ways to avoid collateral estoppel since that doctrine should help the claimant in this situation.

Jul 4, 2023

Happy July 4th!

 

Recognize the location?

Jul 3, 2023

Average Speed Of Telephone Answer

     From The Social Security Administration’s Telephone Service Disruptions, a report by Social Security's Office of Inspector General (OIG):

Click on image to view full size. Yes, it’s a confusing way to present the data. What were they thinking?

 

Jul 2, 2023

Complaints About Charges For SSN Verification


     From Federal News Network:

A federal service used by financial institutions to verify Social Security numbers, recently highlighted as a prime example for how the government could reduce improper payments and fraud, is at risk of a “death spiral” due to a steep increase in user fees, according to proponents of the system.

The Government Accountability Office is now conducting a review of the Social Security Administration’s electronic Consent Based Social Security Number Verification (eCBSV) program after lawmakers flagged concerns with cost overruns and price increases.

Meanwhile, it’s not clear whether eCBSV factors into a forthcoming SSA plan to make real-time Social Security number verification available to federal benefits programs. ...

When SSA launched eCBSV in 2020, SSA said it would charge new users a $3,693 administrative fee and returning users a $1,691 renewal fee. SSA also charged transaction fees, ranging from $400 for a user to submit up to 1,000 transactions, to $276,500 for users submitting between 200,000 and 50 million transactions.

Beginning in 2022, SSA eliminated the transaction fees, but began creating more tiers and increasing the transaction rates for high-volume users.

And as part of the most recent fee structure published in May, SSA raised the rates again for higher volume users. Those submitting between 15 million and 20 million cases will be subject to a $6.25 million annual fee; between 20 million and 25 million transactions will cost $7.25 million; and between 25 million and 75 million transactions will cost $8.25 million.

The new fee structure goes into effect in July.

The upshot, [Katie] Wechsler [of a group composed of banks, credit card companies and other large users of eCBSV] pointed out during last month’s hearing, is that a user submitting 20 million cases this year will pay 22 times what they were charged in 2021 for the same number of transactions. ...

Jul 1, 2023

An Extra $1.4 Billion, Please

     From Money:

Government agencies aren’t exactly known for their stellar customer service. People looking for help from the Social Security Administration (SSA), however, may have it particularly bad.

Average call wait times with the agency have more than doubled in a year, according to SSA data. Even worse, AARP, a leading critic of the SSA's customer service, says that the average amount of time for a Social Security disability claim to be processed has increased to 223 days — and that 10,000 people die every year while waiting for approval. ...

The SSA received a $785 million increase in administrative funding this fiscal year to revamp operations. Now AARP is campaigning for the agency to get another increase of $1.4 billion to address its woeful customer service. ...