The 1099 Problem

Social Security is now sending out 1099s to attorneys and others who have received direct payment of fees for representing Social Security claimants. These 1099s show the gross amount of the fees paid before the user fee which is charged by Social Security.

Attorneys and others who represent Social Security claimants keep accounting records. We record income as it arrives in our offices. At the time we receive a payment of a fee we record what we receive rather than some theoretical fee as it might have been before the user fee.

Eventually, when the 1099s show all fees paid, the totals reported by Social Security on the 1099s will be higher than the totals shown on attorney financial records and that will cause tax problems for those who represent Social Security claimants.

It seems to me that there are two good solutions for this problem. One would be for Social Security to report on the 1099s the net fees actually paid to those who represent Social Security claimants. The other would be for Social Security to provide an annual statement of user fees withheld to each entity receiving a 1099. The entity could then make two offsetting entries in its financial records, one to show the user fees as income and the other to show the user fees as an expense. The accounting records would then match up with the 1099s and everyone would be happy.

I hope that Social Security does not take a third approach to this problem, which would be, "It's your problem. You figure out a solution."

Bonus Plan Voted Down

From the Associated Press:

The Senate on Wednesday rejected a proposal by President Barack Obama to give people on Social Security a $250 bonus check.

Republicans and Democratic deficit hawks combined to reject the idea by a 50-47 vote. The plan, offered in the Senate by Bernie Sanders, I-Vt., would have added $14 billion to the out-of-control budget deficit.

How Women Saved Social Security

From the Economix column in the New York Times:

One of the great advances of 20th century was increased life expectancy. This advance might have bankrupted Social Security, if it were not for women in the work force.

Proposed Regs On Disability Examiner Authority To Make Decisions

Coming tomorrow in the Federal Register:

We propose to amend our rules to permit disability examiners in the State agencies to make fully favorable determinations in certain claims for disability benefits under titles II and XVI of the Social Security Act (Act) without the approval of a medical or psychological consultant. The proposed changes would apply on a temporary basis only to claims we consider under our rules for Quick Disability Determinations (QDD) or under our compassionate allowance initiative.

Three Years, Four Months and 11 days

From the Lawrence Journal-World & News:

For three years, four months and 11 days, Debra Shirar waited for the Social Security Administration to say yes to her disability claim.

In that time, she accepted state assistance for a little more than $100 a month, lived with a friend and rummaged through her neighbors’ garbage to find aluminum cans she could sell to buy medicine.

“I have taken 30 days worth of pills and made them last 90 … because I don’t have the money,” Shirar said. ...

Two weeks ago, the Social Security Administration told Shirar something she had known since October 2006: She was disabled.

“It’s over,” 58-year-old Shirar said. “The resolution is nice, but not as sweet as it would be if I didn’t have to go through with it in the first place. I would rather be working.”

Rangel Leaves As Ways And Means Chairman

Charlie Rangel is temporarily stepping down as Chairman of the House Ways and Means Committee. It is unclear who will succeed Rangel or whether this will lead to any reshuffling of the Subcommittee assignments. This matters since Ways and Means has jurisdiction over Social Security. The Social Security Subcommittee has an important role in Social Security matters. John Tanner, the chair of the Social Security Subcommittee, is retiring at the end of this Congress. I would like to think that this would mean that the Social Security Subcommittee would be untouched by Rangel's decision but we will have to see.

By the way, Representative Tanner voted against health care reform earlier but he is now undecided on how he will vote when it comes up again.

Hearing Backlog Declines

A press release from Social Security:

Michael J. Astrue, Commissioner of Social Security, today announced that the number of disability hearings pending stands at 697,437 cases -- the lowest level since June 2005 and down more than 71,000 cases since December 2008, when the trend of month-by-month reductions began. In addition, the average processing time for hearing decisions has decreased to 442 days, down from a high of 514 days at the end of fiscal year (FY) 2008.

“We have decreased the number of hearings pending by almost 10 percent over the last 14 months and cut the time it takes to make a decision by nearly two and a half months. This remarkable progress shows our backlog reduction plan is working,” Commissioner Astrue said. “With ongoing support from the President and Congress as well as the efforts of our hardworking employees, I am confident the hearings backlog will continue to diminish.”

Social Security has actively addressed the hearings backlog and increased the capacity to hold more hearings. The agency hired 147 Administrative Law Judges (ALJs) and over 1,000 support staff in FY 2009, and has plans to hire an additional 226 ALJs this year. The agency now has four National Hearing Centers to help process hearings by video conference for the most hard-hit areas of the country. The agency also has aggressive plans to open 14 new hearing offices and three satellite offices by the end of the year. The first of these offices was opened in Anchorage, Alaska on February 19, 2010.

Fourteen new hearing offices by the end of this year? A December 31, 2009 report listed only thirteen new hearing offices to open this year and one of those offices was to be in Fayetteville, NC. Take a look at a recent photo of the "building" where the Fayetteville office is supposed to go. Perhaps, some temporary space has been or will be found for the Fayetteville office but pending an announcement, count me as skeptical that there will be a true hearing office in Fayetteville, NC this year.

Colvin Nomination Remains Stalled

About five and a half months ago, Carolyn Colvin was nominated to become Deputy Commissioner of Social Security. No confirmation hearing has been scheduled. The likely problem is the same as for dozens of other nominations stalled in the Senate: Republican obstructionism -- using the threat of filibuster. Probably, the obstruction is not aimed at her. It is just generally gumming up the works, trying to make it hard for the Obama Administration to move forward on any front, especially the health care front, hoping this will lead to voter dissatisfaction with Democrats. Ms. Colvin is caught in the middle.

Mobile Paper Covers Alabama DDS Story

The Mobile Press-Register is running an article on the recent report of Social Security's Inspector General about allegations that Alabama Disability Determination Service (DDS) employees were pressured to approve disability claims.

Are MEs Paid Enough?

Below is an e-mail that I have received that I am posting here with the writer's permission. One detail that might help identify the writer is omitted. The ellipses are in the original. I think there are others who feel the same as this writer.

Greetings,
Having been a follower of your blog for some long while, I've often thought of writing you.

By way of introduction, I am a Ph.D. psychologist in private practice...I've worked at least part-time since 1994 in the SSA [Social Security Administration] system, first at DDS [Disability Determination Services] as a consultant, and now doing ME work for ODAR [Office of Disability Adjudication and Review]. Unlike many MEs [Medical Expert witness at Social Security disability hearing], I am not an elderly retiree, doing this work as supplementary income. I consider it very important work, and I try to bring my varied clinical experiences to bear on the disability cases I read. I work for 7 different ODAR offices in __________, when they call.

What 'pushed me over the edge' to write to you now was a recent case I was asked to review in an interrogatory form. The case involved well over 1200 pages of records relevant to mental health issues, as well as Appeals Council and District Court opinions. I don't mean to sound self-righteous, but I read every page of the case...all the while processing other thoughts....For one, no ME had ever been involved before in this case, though years of back and forth had occurred. For another, I could not do anything but despair about the time I had to invest in it...11 hours including the reading and then writing of an opinion. I could have spent even more time. For this, I will be paid $130. If my forensic colleagues were to take on a case such as this, their fees would approach $2000!

I have very little interaction with other MEs (partly because of the way the ME system is arranged). I have many other concerns..especially the capricious nature of how the case work comes to me...how different judges work so very differently, ..and on. Do other MEs correspond with you? Is there a "lobby" for us? How could I impact the fee structure (unchanged in the time I have worked for OHA [Office of Hearings and Appeals, the former name for ODAR]/ODAR)? So, I am curious about your thoughts...

I look forward to hearing from you...
thanks much,