Deaths And Bankruptcies While Awaiting Action On Disability Claims

      From a press release:

... Senate Budget Committee Ranking Member Bernie Sanders (I-Vermont) and House Ways and Means Social Security Subcommittee Chairman John B Larson (D-CT) responded to new findings from a Government Accountability Office (GAO) study they commissioned which found that thousands of American die or go bankrupt waiting to receive their disability benefits each year. ...

The study, “Social Security Disability: Information on Wait Times, Bankruptcies, and Deaths among Applicants Who Appealed Benefit Denials,” looked at people who appealed an initial denial of their application for Social Security or Supplemental Security Income (SSI) benefits. It found:

• More than 100,000 people died without receiving a final decision on their appeal for Social Security or SSI disability benefits, out of approximately 9 million who filed an appeal from Fiscal Year (FY) 2008 to FY 2019.
• Approximately 50,000 people filed for bankruptcy while appealing for Social Security or SSI disability benefits, out of approximately 3.6 million who filed an appeal from FY 2014 to FY 2019.
• From FY 2008 to FY 2019, most disability applicants who appealed an initial denial waited more than a year for a final decision. Median wait times reached a peak of 839 days – more than 2 years – for claims filed in FY 2015.  ...

 

Policy Proposals From President's Budget

     From the portions of  the President's proposed budget concerning Social Security:

• ... Reduce improper payments caused by barriers for beneficiaries to report income and assets. The Budget proposes to reduce improper payments in disability programs by targeting administrative resources to the development of a uniform system of reporting in mySocialSecurity. This is in addition to instituting a holistic view that provides all beneficiaries’ data, including income and assets, in one electronic location, while simultaneously developing a network of automated processes across other IT platforms for work-related benefit payment adjustments, work continuing disability reviews, redeterminations, and payments to Ticket to Work providers. In addition, future related legislative changes to address the root causes of these improper payments could include requiring suspension of benefits when beneficiaries neglect to report wages and resources, and instituting mandatory training for beneficiaries on reporting requirements prior to receipt of their first benefit checks. These administrative actions would result in $11 billion in outlay savings over 10 years. ... 

• Increase the overpayment collection threshold for OASDI. The Budget would change the mini-mum monthly withholding amount for recovery of Social Security benefit overpayments to reflect the increase in the average monthly benefit since SSA established the current minimum of $10 in 1960. By changing this amount from $10 to 10 percent of the monthly benefit payable, SSA would recover over-payments more quickly and better fulfill its stew-ardship obligations to the combined Social Security Trust Funds. ... 

• Simplify administration of the SSI program. The Budget proposes changes to simplify the SSI program by incentivizing support from recipients’ family and friends, reducing SSA’s administrative burden, and streamlining requirements for applicants. SSI benefits are reduced by the amount of food and shelter, or in-kind support and maintenance, a beneficiary receives. The policy is burdensome to administer and is a leading source of SSI improper payments. The Budget proposes to replace the complex calculation of in-kind support and maintenance with a flat rate reduction for adults living with other adults to capture economies of scale. The Budget also proposes to eliminate dedicated accounts for past due benefits and to eliminate the administratively burdensome consideration whether a couple is holding themselves out as married. This proposal costs $13 million over 10 years. ... 

• Exclude SSA debts from discharge in bankruptcy. Debts due to an overpayment of Social Security benefits are generally dischargeable in bankruptcy. The Budget includes a proposal to exclude such debts from discharge in bankruptcy, except when it would result in an undue hardship. ... 

• Establish replacement Social Security card fee. The Budget proposes to collect fees on replacement Social Security cards. First-time Social Security cards including cards issued at birth would not be subject to the fee....