Part D Premium Withholding Problems

Medicare Part D premiums are supposed to be withheld automatically from Social Security benefits, but Tim Waller reports that there have been many problems. Premiums were not withheld for several months from many people and then the premiums for all those months were suddenly withheld from one month's benefits. National Public Radio reports that some people who signed up for Part D and whose premiums were never withheld are receiving notices from their Part D insurer that the Part D coverage will be stopped if no payment is made. The insurance companies are blaming the problem on delays at Social Security.

Social Security Specialization in NC

The North Carolina State Bar has posted information about the examination it will give in November 2006 to certify the first batch of Social Security Disability Law specialists in NC. Only attorneys licensed in NC are eligible to take the exam.

The NC State Bar also posted some Social Security training material on reading earnings records and computing date last insured to help applicants taking the exam. These materials may be useful to attorneys and others who represent Social Security claimants in other states.

Recess Appointment Resolves Social Security Board Issue

Market Watch reports that President Bush has resolved a dispute over the re-nominations of John Palmer and Thomas Saving to the Social Security Board of Trustees by issuing a recess appointment to each. The Senate had balked at confirming the two because of a tradition that trustees serve only one term. The recess appointment allows the two to serve until the end of the current Congress. The nomination delay had prevented the Board of Trustees from issuing routine reports.

Rep Payee Inconsistencies

Social Security's Office of Inspector General (OIG) has done a study of claimants who are entitled to both a Title II benefit, based upon their own or someone else's earnings record, as well as Supplemental Security Income (SSI) and who have a representative payee to handle their benefits for them. OIG found that there are many thousands of cases in which a claimant has a representative payee for either Title II or SSI benefits, but not for the other type of benefits, that is that part of the claimant's benefits were paid to a representative payee, while part was paid directly to the claimant, a glaring inconsistency. OIG recommended that SSA make the effort to resolve these inconsistencies.

Backlogs and Delays at SSA

Richard Warsinskey, the President of the National Council of Social Security Management Associations (NCSSMA), testified before the House Appropriations Committee on March 29, 2006. He gave the Committee stark evidence of the massive workload problems facing the Social Security Administration:

• In 1999 SSA had 311,000 hearings pending. As of the end of February there are now about 725,000 hearings pending, an increase of 133%. The average hearing processing time continues to go up. Current processing times are 476 days, up from 443 days last fiscal year. The average Administrative Law Judge has approximately 710 cases pending per available judge. As a result the average time to receive a hearing decision is often more than two years.

• SSA’s Program Service Centers (PSCs) have seen their pending cases more than double in the past two years, increasing by more than 350,000 cases. Backlogs in the PSCs have contributed to an increase in requests from Congress for status of cases by over 40% and requests for special high priority payment of cases by over 110%. The PSC backlogs have been exacerbated because so many of the employees must assist in answering the 1-800 number.
• Waiting times in Field Offices rose dramatically for the first six weeks of the year. Walk-in traffic increased by approximately 40% for the first six weeks of the year. Since then traffic has moderated somewhat but walk-in traffic is currently up an estimated 25%.
• SSA’s 1-800 number has received nearly 4.4 million more calls this year compared to the same time last year.

Overpayment Problems

A recent Emergency Message to Social Security staff admits that

Some [Social Security] beneficiaries have had their Title II benefits withheld because their record has been charged with an overpayment that may or may not be correct. Most of the records identified are of individuals that were living in the Katrina Disaster Area in September 2005 and received an Immediate Payment (IP) after the hurricane and have been charged with a Duplicate Check overpayment.

Apparently, the problem is caused by a failure to record returned checks or previous repayments by beneficiaries.

Lockhart No Longer Interested in OFHEO

Marketwatch.com reports that James Lockhart, Deputy Commissioner of Social Security, the number two position at Social Security, is no longer interested in taking a job as director of the Office of Federal Housing Enterprise Oversight which oversees Fannie Mae and Fredde Mac, the federal housing corporations. Earlier reports had Lockhart interested in the position. With the term of Jo Anne Barnhart as Commissioner of Social Security ending in January 2007, this leaves open the possibility of Lockhart taking over from Barnhart. Lockhart is an old college buddy of President Bush and an ardent supporter of Bush's plans to partially privatize Social Security, while Barnhart, apart from one op ed piece in the New York Times in support of the plan, remained silent.

Georgia Man Pleads Guilty To Social Security Fraud

The Weekly reports that a Locust Grove, GA man pled guilty to three fraud counts for receiving Social Security retirement and disability benefits under two names and Social Security numbers. He had originally been charged with 113 counts of wire fraud, mail fraud and Social Security fraud. His sentence was 54 months of probation, 18 months of home confinement and restitution to the Social Security Administration of $86,401.50, in addition to a $300 special assessment.