Yesterday's Hearing

     The hearing yesterday before the Labor-HHS Subcommittee of the House Appropriations Committee went about as I expected but there were interesting details.

Robert Aderholt, Subcommittee Chair

    Robert Aderholt, the Chair of the Subcommittee, spoke first. He said he was happy that Commissioner O'Malley had already come to his office to discuss the agency's appropriation. He said that less than half of agency heads did this, which I find surprising. He also said that this was the first House Appropriations Committee hearing on Social Security in a decade. I knew it had been a long time but that's even more than I imagined. Note to future Commissioners, including Acting Commissioners: Meet with Appropriations Committee members on as regular a basis as you can.

    Aderholt went quickly into Republican talking points which basically amount to pressure to force an end to telework and a demand that the agency manage its way out of its service delivery problems. In particular, he didn't like the amount of overtime at Social Security and thought that it was being abused by employees. Maybe there are problems with overtime but if it there are, it's just the normal sort of management issue that you find at any large entity. It's hardly responsible for any work backlogs, nor is telework. Just about every entity employing white collar employees allows telework. If you don't allow it, you have a hard time holding onto your employees or hiring new ones.

    The other Subcommittee members divided along party lines in predictable and somewhat depressing ways. My limited experience with Congressional hearings in past decades was that they were nowhere near as partisan as this.

     There were many questions along the lines of “Can’t you use AI so you can give better service inexpensively?” The Commissioner’s answer was basically “We hardly have the money to maintain the systems we already have so we can’t possibly afford new AI contracts.”

    It grated on me that Commissioner O'Malley kept saying he had "turned around" Social Security. He's a politician so you expect some hyperbole but saying that the agency has been "turned around" is over the top. O'Malley has done a good job in the short time frame he's had but actually "turning around" the agency was impossible without more time and more money.

    In the end, I hope I'm wrong but I would be surprised to see any additional money for Social Security coming out of this Subcommittee.

    Republicans will get a chance to see whether a Trump appointee as Commissioner can manage the agency out of its service delivery problems. I don't have high hopes of anyone even being nominated for the position for many months, if not years, into the future. Given the quality of the man Trump appointed in his first term in office, I'm not expecting a transformational leader.

House Appropriations Hearing

     The written witness statement of Commissioner Martin O'Malley for today's hearing before the Labor-HHS Subcommittee of the House Appropriations Committee is already available. I think someone slipped up. They normally embargo these until literally the moment the witness starts speaking.

    The hearing, which is set for 10:30, will be available for viewing online.

Overpayment Changes Written In The Sand?

    From a press release issued by Social Security on March 20 of this year:

Social Security Commissioner Martin O'Malley today announced he is taking four vital steps to immediately address overpayment issues customers and the agency have experienced. ...

Our deeper understanding of the complexities of this problem has set us on the following course of action:

1. Starting next Monday, March 25, we will be ceasing the heavy-handed practice of intercepting 100 percent of an overpaid beneficiary's monthly Social Security benefit by default if they fail to respond to our demand for repayment. Moving forward, we will now use a much more reasonable default withholding rate of 10 percent of monthly benefits — similar to the current rate in the Supplemental Security Income (SSI) program.
2. We will be reframing our guidance and procedures so that the burden of proof shifts away from the claimant in determining whether there is any evidence that the claimant was at fault in causing the overpayment.
3. For the vast majority of beneficiaries who request to work out a repayment plan, we recently changed our policy so that we will approve repayment plans of up to 60 months. To qualify, Social Security beneficiaries would only need to provide a verbal summary of their income, resources, and expenses, and recipients of the means-tested SSI program would not need to provide even this summary. This change extended this easier repayment option by an additional two years (from 36 to 60 months).
4. And finally, we will be making it much easier for overpaid beneficiaries to request a waiver of repayment, in the event they believe themselves to have been without any fault and/or without the ability to repay.

        This has all been implemented via an Emergency Message and changes in the agency's POMS manual. Social Security says it has reduced the number of people affected by withholding the entire monthly check from 46,000 to 7,000. The problem is that none of these changes have the force and effect of law, as a regulation would. Everything O'Malley has done on overpayments could be easily undone by a simple memo. Regulations can be amended but the process takes time. It's much less likely to be done. Maybe the agency was working on regs and didn't get finished. Maybe it was thought that a subsequent administration wouldn't change this. Maybe they won't but I wouldn't be surprised if this one does. Have you noticed that the incoming administration seems a little bloody-minded?

    One other thing that O'Malley talked about was a statute of limitations on the collection of overpayments. I thought he could have done this by a regulation but, apparently, his agency eventually decided that Congress would have to amend the statutes, which, of course, is impossible.

O'Malley Resigning On November 29

     Martin O'Malley is resigning as Commissioner of Social Security effective on November 29.

    Update: NBC News reports that O'Malley is seeking to become the Chair of the Democratic National Committee.

Appropriations Hearing On November 14

    The House Appropriations Committee has scheduled a hearing on the Social Security Administration appropriation for 10:30 on November 14. Commissioner Martin O'Malley is the only scheduled witness.

Why O'Malley Will Leave Office By January 20

     When I posted yesterday to give my advice about one thing the Commissioner could do before leaving office I didn't explain why he would be leaving office soon. I thought everyone knew that but it's apparent from the comments made that many don't understand so let me explain. Commissioners of Social Security have fixed six year terms. A Commissioner's six year term doesn't run from the date that he or she is confirmed. It runs until the end of the fixed six year time period. In O'Malley's case, he was confirmed with only a little more than a year left in that six year time period. O'Malley's six year term ends on Inauguration Day in January. However, after a Commissioner's six year term ends he or she can remain as Commissioner until a new Commissioner is confirmed. If Kamala Harris had been elected, this might have been of importance but she wasn't. More important than all this six year term business is the fact that a President can fire a Social Security Commissioner any time he or she chooses. That's what happened to Andrew Saul. It's extremely unlikely that O'Malley would want to hang around for the chaos of Trump II but even if he tried, he'd almost certainly be summarily fired. If you think there will be any bipartisanship in Trump II you haven't been paying attention. Thus, O'Malley will be leaving office by Inauguration Day.

    By the way, don't expect a nomination for a new Commissioner anytime soon. Both Republican and Democratic administrations have taken treated the nomination as a low priority matter.

What O’Malley Can Do Before Leaving

      There is precious little that Social Security Commissioner Martin O’Malley can do before Inauguration Day that could not be quickly undone by the incoming Trump Administration. One exception would be finally putting an end to the Eric Conn cases. There have been reports that O’Malley has planned to do something to terminate most of the Conn cases. Why not just end them all? Apart from the Chief Counsel, no one at the agency seems to have any appetite to go after these claimants any further. The politicians in Kentucky are pushing for relief for these claimants. Does anyone in Congress still want this group punished? It's time to clear this matter off the agency’s plate.

Ways And Means Republicans Oppose Recent Decisions By Commissioner Of Social Security

     From a press release issued by the Republican majority on the House Ways and Means Committee:

Four recently finalized rules from the Social Security Administration (SSA) are the latest examples of the Biden-Harris Administration’s expansion of federal power at a substantial cost to taxpayers, write House Ways and Means Chairman Jason Smith (R-MO), Work and Welfare Subcommittee Chairman Darin LaHood (R-IL), Social Security Subcommittee Chairman Drew Ferguson (R-GA), Budget Committee Chairman Jodey Arrington (R-TX), and Budget Committee Oversight Task Force Chair Jack Bergman (R-MI) in a new letter to Social Security Commissioner Martin O’Malley.

Over the next decade, these Biden-Harris rules from the SSA, which circumvent the fiscal accountability requirements of the bipartisan Fiscal Res    ponsibility Act, will add $37 billion in new, unpaid-for spending within the Social Security Disability Insurance (DI) and Supplemental Security Insurance (SSI) programs. 

The Biden-Harris Administration’s failure to offset the costs of these rules will both run up the already unsustainable national debt and further harm the financial health of the Social Security programs. Further, these rules were finalized at a time when the combined Social Security Trust Funds are expected to go bankrupt and be unable to pay full benefits in the next decade. ...

    The rules in question are:

• Expand the Definition of Public Assistance Household: Estimated 10 Year Cost: $15 billion
• Omitting Food from In-Kind Support and Maintenance Calculations: Estimated 10 Year Cost: $1.6 billion
• Expansion of the Rental Subsidy Policy for SSI Applicants and Recipients: Estimated 10 Year Cost: $837 million
• Intermediate Improvement to the Disability Adjudication Process: Including How We Consider Past Work: Estimated 10 Year Cost: $19.7 billion

Some Pics

     The Commissioner of Social Security, Martin O'Malley, visited Raleigh yesterday for an event at the Governor's Mansion to celebrate the 70th anniversary of North Carolina's Disability Determination Service (DDS). My partner and I received an invitation to the event. Here are a few pictures. 

    First, me with Commissioner O'Malley:

    Second, a picture of my partner, Crystal Rouse, with the Commissioner:

    Next, a picture of Rose Mary Buehler, the Regional Commissioner for the Atlanta Region, myself, Joseph Lytle, the Deputy Commissioner for Hearings Operations and Crystal.

    Finally, a picture of the NC DDS employees in attendance.

    The venue was not large enough to accommodate the entire workforce at NC DDS.

The Social Security Administration When Trump Was President

     From the Revolving Door Project:

... Former President Trump filled top roles at the SSA with people actively hostile to Social Security beneficiaries, as well as campaign donors with no real experience relevant to the agency.

 For the role of SSA commissioner, Trump nominated Andrew Saul, a GOP mega donor and “one-time handbag king” with tens of millions in assets. Saul was not entirely lacking in public service experience, however. While serving as the vice chairman of New York’s Metropolitan Transit Authority (MTA), he ran a short-lived congressional campaign in the run-up to the 2008 presidential cycle, but he dropped out of the race four days after the New York Times revealed he had accepted donations from companies bidding on MTA contracts—potentially a violation of state ethics rules.

Saul’s most relevant experience was as George W. Bush’s Chair of the Federal Retirement Thrift Investment Board, which manages the retirement savings plan for federal workers, the Thrift Savings Plan (TSP). But the TSP is much more similar to a private 401(k) plan than publicly-funded Social Security benefits, which led advocates like Nancy Altman of Social Security Works to point out at the time of his nomination that while Saul’s experience with the TSP “was undoubtedly valuable, it has little value to helping him run the Social Security system, unless he seeks to privatize the program.”

When President Biden fired Saul, an action he should have taken on day one but instead held off for months, Saul embarrassed himself by calling his firing a “palace coup.” He argued that his termination was illegal—despite the Supreme Court clearly ruling that the President has the authority to fire the Commissioner.

Trump appointed Mark Warshawsky to be Deputy Commissioner for Retirement and Disability Policy, despite his record of hostility to Social Security. At the Department of the Treasury, Warshawsky worked on President George W. Bush’s plan to privatize Social Security, which later earned him a nomination to the Social Security Advisory Board. In 2016, in the midst of stints at various private companies specializing in retirement income, Warshawsky published an article peddling the lie that SSDI is rife with “waste and fraud,” and bloated by people who could be working. (In reality, even the austerity-minded Committee for a Responsible Federal Budget acknowledges that fraud is “less common in the SSDI program than many believe” and “not a major cost driver for the program.”)

Several other papers Warshawsky wrote while at the Koch-funded Mercatus Center expressed skepticism about whether or not the SSA’s extremely stringent standards for assessing disability were in fact too lenient. After his SSA role, Warshawsky joined the American Enterprise Institute, a longtime proponent of cuts to Social Security and privatization.

When SSA’s Inspector General position opened up, Trump nominated Gail Ennis to the role. Inspectors General are supposed to function as independent watchdogs, but seemingly her only qualification was being a campaign donor (including up through August 2017). In her first financial disclosure, she disclosed receiving a salary of over $2 million working for WilmerHale, representing three massive banks and one hedge fund—Bank of America, JP Morgan Chase, HSBC, and Ken Griffin’s Citadel. ...

John Oliver Segment Segment On Social Security Budget; Also "Tackling That Outdated Occupations List"

     A couple of tweets from the Commissioner of Social Security (emphasis added):

Martin O'Malley

@OMalleySSA

·

I want to thank @iamjohnoliver @LastWeekTonight for calling out the crucial need for more staffing + funding @SocialSecurity

 

Martin O'Malley

@OMalleySSA

·

In the 9 months I've been serving, @SocialSecurity has made good progress to improve our disability programs but - as you noted - we need more Congressional support and partnership. By the way, we're tackling that outdated occupations list.

    Did anyone catch that John Oliver segment?

Why Social Security Needs An "Anomaly." Also, The "F" Word Gets Mentioned

     From Government Executive:

...  In a letter to House Appropriations Committee Chairman Tom Cole, R-Okla., O’Malley warned of dire consequences if SSA is flat-funded past September, as proposed in the House GOP’s six-month continuing resolution. House Speaker Mike Johnson on Wednesday cancelled a planned vote on the measure, after dissent within his caucus threatened to derail its passage.

“If enacted, a six-month CR without any additional funding for the Social Security Administration would be devastating,” O’Malley wrote. “We would be forced to implement a hiring freeze with minimal exceptions. We would lose over 2,000 staff in the first half of the year alone and reach a new 50-year staffing low by the end of December. We would need to significantly reduce overtime to historically low levels, decreasing processing capacity for our most critical workloads.” 

And in testimony before the Senate Budget Committee, O’Malley laid out how both the House and Senate funding proposals for SSA would fall short of the agency’s needs. Under the House plan, employees would be furloughed by 20 days, while the agency would see its headcount fall by 3,400 staff, not including the 1,500 decrease in staff at state Disability Determination Services offices. And funding for the agency’s IT infrastructure would be “barely” enough to “keep the lights on.” ...

Senate Budget Committee Hearing

     The Senate Budget Committee held a hearing yesterday on Social Security Forever: Delivering Benefits and Protecting Retirement Security. Here are the written statements before the Committee. 

• Martin O'Malley, Commissioner, Social Security Administration
• Rebecca Vallas, Chief Executive Officer, National Academy of Social Insurance
• Roger Boudreau, President, Rhode Island AFT/Retirees Local #8037R 
• Molly Dahl,  Long-Term Analysis Unit Chief, Congressional Budget Office 
• Shai Akabas, Executive Director, Economic Policy Program, Bipartisan Policy Center

This is from a news article on the hearing:

… The ultra-wealthy are avoiding nearly $2 trillion in taxes every 10 years," Sen. Ron Wyden (D-Ore.) said during a Senate Budget Committee hearing. "That is enough to keep Social Security whole till the end of this century."

"That's where we ought to go to start making progress," Wyden added. …

What's Going On? Oh, Not Much

     It's been a few days since I've posted anything. You wouldn't expect much Social Security news over the Labor Day weekend anyway but there's usually a little bit.

    I will speculate that there are two causes for the slowness. First, it's the election season. My observation over the years is that Social Security is always careful to avoid making even the slightest news during a Presidential election season. I've always wondered whether this is explicit or just instinctive at Social Security. Second, I think Martin O'Malley has picked all the low hanging fruit he could find. Maybe he's planning to leave the agency after the election one way or another or maybe there's nothing more of consequence he can do without Congressional approval and there's no way to get that now.

Interview With The Commissioner

     Commissioner Martin O'Malley gave an interview to the Dallas Morning News. Nothing earth shattering but it's still interesting that he's talking about Social Security's long term funding problem and the President's budget in a much more open way than prior Commissioners. You can tell that he's working for the President rather than trying to be scrupulously above even the hint of politics. The whole "Independent Agency" claptrap is fading away. It never worked. A government agency that pays money to one American in five is inherently part of the political system.

    Next step, make Social Security a cabinet level department.

SSI Underpayments

A Tweet From The Commissioner

Had a blast visiting our @SocialSecurity offices in Arlington, TX, Albuquerque, NM, and Phoenix, AZ, this week! Getting great feedback from employees + customers 

 

Hearing Office Wait Time

    From the Commissioner:

Click to view full size

    By the way, what happened to Alaska?

Action Plan 2024

     Social Security has recently released its Action Plan 2024. It's a good summary of what has been done during the time that the current Commissioner has been on the job.

    Social Security can be proud of what has been accomplished this year but there's going to be no fundamental change for agency employees or those who deal with the agency until the agency gets a significantly higher appropriation. The low hanging fruit has been picked. There's no way to manage the agency out of the hole it's in. As former Commissioner Michael Astrue said, it's going to take "brute force," as in a lot more employees.

Senators Seek Action On Long Covid Disability Claims

     Seven Democratic Senators have written the Commissioner of Social Security asking that something be done about disability claims filed by those suffering from long Covid.

    As I've said before, I'm out there representing Social Security disability claimants. My firm is taking on new cases regularly. I'm only seeing a very few claimants with long Covid. I don't see any more problem with those few cases than with other Social Security disability claims which means there are severe problems.

    The letter  also said that a couple of more general changes should be made:

... SSA should allow appointed representatives to see all exhibits at the initial and reconsideration disability claim stages. ...

SSA should restore the “treating physician rule” so a claimant’s primary care physician or Long COVID specialist can have their medical opinion given the weight it deserves. ...