President's Budget Proposal Released

     President Obama has released his budget proposal for Fiscal Year (FY) 2017, which begins on October 1, 2016. Below are two tables giving Social Security highlights (click on each one to view them full size) but be aware that this is just a proposal. Congress must act upon it and this Congress has exhibited a visceral hostility to the President.

     Note that even with increased funding which is unlikely to come, the agency expects an increase in the average time it takes to get a hearing decision as well as an average speed of answer on telephone calls of greater than ten minutes.

Social Security Agreement With Hungary

     The United States and Hungary have signed a social security agreement. Such agreements help prevent double taxation of wages and help those who move between the two countries.

Social Security Advocates For The Disabled Sold

     From a press release:

J. Scott Penny, Chief Acquisitions Officer of Brown & Brown, Inc. (NYSE: BRO), and Ann Marie Beaudoin and Victor Arruda, the founders of Social Security Advocates for the Disabled, LLC ("SSAD"), announced that The Advocator Group, LLC, a subsidiary of Brown & Brown, Inc., has acquired substantially all of the equity interests of SSAD.

Since its founding in 1994, SSAD has provided Social Security disability insurance ("SSDI") advocacy services to individual clients on behalf of long-term disability insurance carriers. SSAD has annual net revenues in 2015 of approximately $10.0 million. ...

Two Senators Want Social Security Disability "Reforms"

     Senators James Lankford (R-Okla.) and Joe Manchin (D-W.Va.) have written a letter to Senator Orrin Hatch, the chairman of the Senate Finance Committee urging further "reforms" to Social Security disability. Apparently, the Senators are urging passage of an amendment sponsored by Lankford that would require, in his words:

• Updating the Social Security Administration (SSA) medical and vocational guidelines for eligibility, which hasn’t been updated since 1978
• Making sure that claimants who are assumed to be able to work (i.e., eligible for Unemployment Insurance) don’t get trapped in a benefits system that discourages work
• Streamlining the process to eliminate unnecessary steps for claimants for reconsideration
• Tightening rules and requirements, and reducing fees to keep Administrative Law Judges (ALJs), claimant representatives, medical experts, and SSA accountable.
• Strengthening SSA and Congressional oversight of SSA and ALJs
• Creating a separate budget account for SSA’s program integrity work, to ensure benefit processing is accurate and efficient
• Making available information to Disability Determination Services and ALJs about medical improvement, and,
• Ensuring that claimants whose records are not fully-developed have their cases thoroughly reviewed.

Claims Rep Gets White House Recognition

     From Social Security Matters, the agency's blog:

The White House announced winners of the first ever President’s Award for Customer Service, and we’re proud to share that one of our employees received this honor among four other government awardees.

Shawn Lynch, a claims representative from the Dothan, Alabama, field office, was recognized for her superior customer service. Among her many contributions, Shawn led efforts to reduce appointment wait times and increase the number of my Social Security registrations within her office. She also took the initiative to reach out to applicants before their appointments, giving them the opportunity to have their disability claims taken early. Shawn educated claimants on the Self Help PC as well. Furthermore, she showed her commitment to service by taking part in community outreach.

Problems Yesterday With Social Security's Online Systems -- Today?

     My firm experienced serious problems accessing Social Security online yesterday. We heard from others who were having the same problem. Social Security sent out a broadcast e-mail about the service outage so I know the problem was national. It turns out that it wasn't just the public than was having problems with Social Security's online systems. Social Security's employees were also having problems with their data systems.

     I haven't tried to access Social Security online yet today. Anyone know what's going on now?

     Update 11:10 am EST: I've tried to get in. I can check on case status but I can't access the electronic folder. It's the same as late yesterday afternoon. It would be nice if you sent out a broadcast e-mail, Social Security.

Appeals Council Won't Return Evidence -- But They Won't Consider It

     From today's Federal Register:

This final rule revises our rules regarding returning evidence at the Appeals Council (AC) level. Under this final rule, the AC will no longer return additional evidence it receives when the AC determines the additional evidence does not relate to the period on or before the date of the administrative law judge (ALJ) decision.

Interesting Statements At Confirmation Hearing

     From the statement of Orrin Hatch, Chairman of the Senate Finance Committee, at today's hearing on the nomination of Andrew Lamont Eanes to become Deputy Commissioner of Social Security:

... Today we will also consider the nomination of Andrew LaMont Eanes to be the Deputy Commissioner of the Social Security Administration . Currently, Mr. Eanes serves as Senior Advisor in the Office of the Acting Commissioner and has a vast background in management, technology, and a demonstrated history of simply getting things done. We can always use more of that in our government. ...

 Even with these fiscal challenges [of the Social Security trust funds], operationally speaking, the Social Security Administration, or SSA, has fared better than most agencies in terms of budget allocations. Of course, we generally don’t hear that from them. Instead, we tend hear persistent claims from many SSA officials that any and all problems at the agency are caused by Congress’s supposed refusal to provide adequate funding. 

Fortunately, however, there are also those at SSA who work hard, day in and day out, to ensure that taxpayer funds are used as efficiently as possible for the sake of beneficiaries. And, everything that I’ve see n thus far indicates that Mr. Eanes is one of these diligent officials working to protect taxpayer resources and to make sure the benefit programs can be run as efficiently and effectively as possible. 

That is precisely what hardworking taxpayers and beneficiaries of these important programs deserve. ...

     Senator Hatch, it's just a fact that because of inadequate administrative appropriations the Social Security Administration was forced to reduce its workforce dramatically at a time when its workload was increasing dramatically because of the aging of the baby boom generation.

     From the statement of Ron Wyden, the ranking Democrat on the Committee: 

Some have raised questions about this nomination because Mr. Eanes background is not in social insurance or public management. But sometimes, a fresh perspective may be valuable in helping tackle challenges in federal agencies. Mr. Eanes brings significant management and technology expertise from his time in the private sector, which could be highly beneficial to Social Security in delivering the best possible customer service.

Finally, I want to remind the committee that Social Security has not had a confirmed commissioner in place since February 2013. This committee should consider whether or not it is wise to confirm a deputy before a commissioner is confirmed. SSA runs best when its uppermost leadership positions are filled by strong leaders who’ve been approved by the Senate, but legitimate questions have been raised about the best way to proceed.

So I look forward to discussing that issue with my colleagues, and my hope is the administration puts forward a nominee to be commissioner for the committee to process as soon as possible.

NCSSMA Newsletter

     The National Council of Social Security Management Associations (NCSSMA), an organization of Social Security management personnel, has issued its January 2016 newsletter, which they now characterize as a blog.

Hearing On Eanes Nomination

William Lamont Eanes

     The Senate Finance Committee will be holding a hearing on February 4 on the nomination of Andrew Lamont Eanes to become Deputy Commissioner of Social Security. The hearing will not just be on Eanes' nomination. The nominations of a Deputy Secretary of HHS and two Tax Court judges will be on the table. This suggests that the hearing is little more than a formality.
     If Eanes is confirmed, he will immediately replace Carolyn Colvin as Acting Commissioner of Social Security. Colvin's term as Deputy Commissioner expired quite some time ago. The Senate never acted on her nomination to become Commissioner. I don't believe he renominated her after the last midterm election. Eanes had been nominated on July 31, 2014.

     Here's what I can find out about Eanes from a Cleveland Plain Dealer article

• From Cleveland and still roots for the Browns (poor man)
• Goes by Lamont
• About 59 years old
• Has a wife and two grown sons
• He worked for an Ohio state senator and later coordinated his run for mayor of Cleveland
• Has an undergraduate degree from Northern Ohio University and an MBA from Baldwin Wallace University
• Has worked in Kansas City, Baltimore, Hong Kong and Sydney
• Has been chief operating office of two telecommunications companies. In 2012 he and his wife started Agile Government Services, a software consulting business that mostly serves the Department of Defense.
• "Eanes said he heard about the job opening at Social Security's headquarters in Baltimore and applied with no special connections. 'I was an Obama enthusiast but not particularly involved.'"

     When I posted about Eanes' nomination in 2014 almost all the comments had to do directly or indirectly with Eanes' race. Most commentators simply assumed he is incompetent and got the nomination merely because of his race. That's disgusting. Eanes has held positions of significant responsibility in the past. He lacks Social Security experience. It would be nice if he did but that's usually not the case with high level appointments at Social Security no matter who the President is and regardless of the race of the person being nominated. 

     I have no idea why this nomination is moving forward at this time but I'd have to guess the Carolyn Colvin, the Acting Commissioner of Social Security, wants to retire now.

Final 2015 Disability Insurance Trust Fund Numbers

     The Social Security Administration has released the final numbers for last year on the performance of the Disability Insurance Trust Fund. Because of a temporary change the Disability Insurance Trust Fund's revenues will increase in 2016. The fund's balance should be higher at the end of 2016 than it is today. Please note however that the annual deficits in the Disability Insurance Trust Fund have gone down each of the last two years. Continuation of this trend would slowly move the Disability Trust fund towards balance.

Disability Insurance
(Amounts in millions)

Calendar year	Total income	Total outgo	Net increase in asset reserves	Asset reserves at end of calendar year
2011	$106,276	$132,332	$-26,056	$153,850
2012	109,115	140,299	-31,184	122,666
2013	111,228	143,450	-32,221	90,445
2014	114,858	145,060	-30,201	60,244
2015	118,595	146,581	-27,985	32,259

Obama To Visit Social Security Headquarters -- Apparently Only Its Parking Lot

Social Security Headquarters, October 12, 1966

     I looks like President Obama will be visiting Social Security headquarters on Wednesday -- but apparently only its parking lot which will be used as a staging area for a visit to a nearby mosque.
     It's been almost 50 years since the last Presidential visit to Social Security headquarters. That doesn't seem right to me.

VIP To Visit Social Security Headquarters

     Social Security is warning its central office employees of extraordinary security measures that will be in effect Wednesday morning at its Security West property due to a "VIP-related security event." Parking will be significantly reduced, some entrances will be blocked off and blinds or shades will have to be closed in some offices. Vehicles will be inspected by K-9 units. 

     I hope someone can enlighten us but I'm having trouble imagining anyone whose visit would justify such preparations other than the President or the head of state of some foreign nation and I don't think any foreign leader is visiting Social Security headquarters.

At Least Somebody Is Hiring

     From a job posting:

Binder & Binder Disability caseworker
Quikaid, Inc. - Saint Petersburg, FL
$35,000 a year

Our firm is seeking 1-2 disability caseworkers with experience working in the disability field, particularly with a firm such as Binder & Binder. Binder & Binder is in bankruptcy, and our firm has made an offer to purchase Binder & Binder's assets from the bankruptcy estate. While that offer is being reviewed, we continue to grow aggressively and are seeking to build our staff. ...

Man Convicted Of Stealing More Than $1.5 Million From Social Security and VA

     From a press release issued by Social Security's Office of Inspector General:

United States Attorney Bill Nettles stated today that Dennis Paulsen, age 45, of Blythewood, was convicted of stealing more than $1.5 million from the United States Department of Veterans Affairs and the Social Security Administration following a seven-day jury trial in federal court in Columbia [SC].  ...

After being diagnosed [with Multiple Sclerosis] and discharged from the Navy in the early 1990s, Paulsen began receiving a monthly VA benefit as a result of his diagnosis.  Unsatisfied with the amount he was receiving, Paulsen began a pattern of malingering by claiming his MS rendered him unable to use his hands or feet in any respect.  Still unhappy with the money he was awarded, Paulsen ramped up his claims, lying to his doctors, presenting himself as house- and wheelchair-bound, and making false claims that he required daily professional medical care to live until his benefits were increased to the maximum disability payments available to a Veteran.  At the same time, Paulsen used the same feigned impairments to convince the Social Security Administration that he was entitled to Social Security disability benefits.  Despite his feigned claims of impairments and presenting himself in a wheelchair to his doctors, Paulsen lived in a non-handicap accessible residence and was able to ride his motorcycle and jet skis plus play baseball and golf on a regular basis. ...

The extensive investigation by the VA and SSA included undercover agents, surveillance, and photographs and video footage from banks, stores, and the Columbia Metropolitan Airport. Family photographs kept by Paulsen’s ex-wife were also obtained showing Paulsen’s many activities with his family, playing baseball, and participating in a Marine Mud Run. Paulsen testified, in a wheelchair, for four hours and called three doctors as expert witnesses in an attempt to support his claim that he was and had been totally disabled. The guilty verdict reflects that the jury did not find this testimony credible.

     MS is a strange disease. A person with relapsing and remitting MS can have dramatic fluctuations in their functional abilities. They can legitimately go from having few symptoms to being in a wheelchair to again having few symptoms over the course of a few weeks. A jury convicted this man so I assume the evidence against him was strong but an MS patient who tells a story of severe symptoms that come and go may well be telling the truth. If you deal with MS patients at all, you really get struck by how strange MS is.

Doctor Indicted For Fraud

     From the Philadelphia Inquirer:

... Federal prosecutors Friday unsealed an indictment charging a Wynnewood doctor with Social Security fraud. 

Frederick Douglas Burton, 67, of the Burton Wellness & Injury Center on City Avenue in Wynnewood, has been charged with two counts of mail fraud and attempted mail fraud.

He is accused of defrauding the Social Security Administration by signing and sending letters on behalf of another doctor, Dennis Erik Fluck Von Kiel, of Lehigh County. 

The two letters, sent in the fall of 2013 to a law firm that helps clients obtain Social Security disability benefits, falsely contended that Burton had been treating Von Kiel for about seven years, and that Von Kiel suffered from post-traumatic stress disorder and was unable to work, according to the U.S. Attorney's Office in Philadelphia. ...

Old Age And Survivor Trust Fund Keeps Growing

     Social Security has posted the final 2015 numbers for the Old Age and Survivor's Trust Fund. Please note that despite the gloom and doom from the right that the Trust Fund reserves keep increasing and now stand at $2.8 trillion. That's trillion with a T. I'm sure that we'll hear the right say that this proves that SOCIAL SECURITY IS DOOMED TO FAIL. They've been proven wrong for more than 80 years but they keep bellowing the same thing. Koch brothers money buys a lot of bellowing.

Old-Age and Survivors Insurance
(Amounts in millions)

Calendar year	Total income	Total outgo	Net increase in asset reserves	Asset reserves at end of calendar year
2011	$698,781	$603,750	$95,031	$2,524,075
2012	731,075	645,482	85,593	2,609,668
2013	743,793	679,475	64,317	2,673,985
2014	769,417	714,170	55,247	2,729,233
2015	801,561	750,542	51,019	2,780,251

Prior Claim Files

     I wonder if someone could confirm something for me. I've heard that in Social Security disability cases prior claim files, as long as they are electronic, are linked to current electronic claim files in some fashion and are easily available to those adjudicating the new claim. Is this accurate?
     The problem for me is that the prior claim files are not available to attorneys representing claimants. If these files are available to an Administrative Law Judge (ALJ) hearing a case, shouldn't they also be available to the claimant and his or her attorney? I can hear the response, "Well as long as I don't make them an exhibit, what's the problem?" The problem is two-fold. First, how do I, as the claimant's attorney know that you haven't looked at them? It's possible to look at something without making it an exhibit. I'm not implying some impropriety. My impression from things I've heard is that many ALJs believe that if something was made an exhibit at a prior hearing, it remains an exhibit at a hearing on a new claim and is available to the attorney representing the claimant but it isn't. Second, the prior file may include valuable information that would help in the adjudication of the new claim. If ALJs aren't looking at the prior claim files, they should be.

The CARES Plan

     Social Security's plan for dealing with its hearing backlog has leaked out. It's called CARES, standing for "A Plan For Compassionate And REsponsive Service." Here's another link to the plan, although this second link will expire on January 29.
     The plan is awfully reminiscent of prior plans to deal with the backlog. Here are the elements of this plan as I see it:

• Assumption that the most important element is better management. Current management is much smarter than the people who used to manage the Office of Disability Adjudication and Review (ODAR). Of course, they were idiots. Look at the backlog! Of course, the new guys are smart. Look at that great graphic on the cover of the report. Anybody who can produce graphics like that must have a great plan.
• Vague management initiatives. The new management initiatives consist of mere concepts that have little hope of succeeding but the new managers are so much smarter than the old managers that, of course, the new initiatives will work.
• Unrealistic assumptions about future appropriations. The plan is based upon Social Security getting all the appropriations it desires. However, in the real world, as long as the GOP controls the House of Representatives, the agency's budget may see little improvement. It may be difficult to maintain current staffing levels, much less improve them.
• The assumption that it is essential that the process be controlled so that allowance rates on disability claims remain at historic lows. Keeping approval rates low is referred to as "quality." If anything, it looks like there will be new initiatives to improve "quality." "Quality" concerns will almost certainly prevent the issuance of many staff attorney decisions.

     What I see here is an unappealing mixture of arrogance, wishful thinking and cowardice. Everyone knows what would help considerably even at current funding levels -- aggressive use of the senior attorney program and encouraging Administrative Law Judges to do on the record reversals in appropriate cases. Social Security management is afraid of offending the GOP by approving more claims so they don't do what they know would work.
     If I sound bitter, it's because I am. I'm out there dealing with the claimants whose lives are being destroyed by the backlogs while Social Security management seems more interested in producing great graphics than in actually doing something about the problem. What's needed is the courage to admit the obvious and do what needs to be done. Instead, we get nonsense like this which only encourages Republican budgetary obstinance. Why give the agency more money when the agency itself is telling you what you want to hear -- that they can manage their way out of the problem? Don't expect Republicans to pay attention to the rosy prediction in CARES that the agency will get more money so it can hire more workers. They will ignore that and demand that Social Security solve its backlogs without additional money while making sure that it's horribly difficult to be approved for disability benefits.

Finally!

     Social Security has announced that its central offices in the Baltimore area will be operating on a normal schedule tomorrow. 

     Among other effects, the three days of closure due to the snowstorm have added to the backlog of people awaiting payment of disability benefits after a favorable decision and to the backlog of people awaiting action from the Appeals Council. 

     Even with the offices reopening, things will not be back to normal if schools remain closed. Employees can't leave their young children at home alone. Perhaps some locals can update us on the school situation.