The early report from USA Today is that the state funeral for former President Gerald Ford is likely to be on Tuesday, January 2, which means that federal offices, including Social Security, will likely be closed that day.
Dec 27, 2006
GAO Report On Implementation Of Medicare Part B Income-Based Premiums
The Government Accountability Office (GAO) has issued a report on Social Security's implementation of income-based Medicare Part B premiums. This is a big workload that Social Security does not need at a time when it is already struggling to cope with severely limited funding. Below is the cover letter to the Senate Finance Committee Chairman and Ranking Minority Member summarizing the report.
November 17, 2006
The Honorable Charles E. Grassley Chairman
The Honorable Max Baucus Ranking Minority Member
Committee on Finance United States Senate
Subject: Social Security Administration: Short Time Frame and Workload Challenges Could Affect Timely Implementation of Income-Based Medicare Part B Premiums
Beginning January 1, 2007, the premiums for the Medicare Part B Supplementary Medical Insurance program will be based on income, which will raise the premiums for approximately 1.65 million higher-income beneficiaries to as much as 80 percent of the full cost over the 3-year phase-in period. This change, which may be unknown to some beneficiaries, will affect single individuals with incomes over $80,000 and married couples who file jointly with incomes over $160,000. Medicare Part B is a voluntary program administered by the Centers for Medicare & Medicaid Services (CMS) that covers doctors’ services, certain outpatient services, and other care. Currently, Medicare Part B beneficiaries generally pay a flat premium of 25 percent (the standard monthly premium) of the cost of the program, with the remaining 75 percent subsidized by the federal government. While CMS administers the program, the Social Security Administration (SSA) is responsible for determining and assessing Medicare Part B income-based premiums once CMS has set the standard premium amount for the year. To better understand how SSA is implementing such premiums, the Senate Committee on Finance requested that we review the process that SSA has established to determine and assess the new premiums.
Enclosed (Enclosure I) is an updated version of the briefing that we provided to your staff on November 7, 2006 describing the status of SSA’s implementation efforts as of November 6, 2006. At this writing, SSA is still in the process of calculating premiums and expects to finish this task by mid-November. Once the calculations are completed, SSA will include the new premium in its cost of living adjustment notices, which will be mailed to affected beneficiaries in late November. Beneficiaries will have 60 days after receiving the notice of the premium increase to file an appeal. However, they may also request a new determination without filing an appeal if they have experienced a life changing event that results in a significant reduction in their income, or they have more recent, amended or corrected tax return information. Time frames for requesting new determinations vary depending on the reason that beneficiaries cite for making such a request. SSA is conducting a number of training efforts to assist staff in dealing with inquiries from affected beneficiaries. For field offices with a high volume of affected beneficiaries, SSA plans to move the resulting work as needed to offices with fewer affected beneficiaries. Despite SSA’s planning efforts, there are various issues that could affect its implementation of income-based premiums. For example, SSA has about a month to determine and assess the premiums, and faces an anticipated field office workload increase when beneficiaries contact them for help in understanding the higher premiums or challenging the premium assessment.
To address the Committee’s request, we reviewed relevant statutes and program regulations on income-based premiums, interviewed officials at SSA, the Internal Revenue Service (IRS), and CMS, and obtained supporting documentation on their plans for implementing the income-based premiums. We evaluated these plans based on the time frame established in the law for SSA’s receipt of income-based data from the IRS and SSA’s schedule to implement the income-based premiums by the effective date. We also interviewed managers and staff at various SSA field offices and spoke with Medicare advocacy groups. We did not assess the procedures used to test IRS and SSA systems for implementing the income-based premiums. We performed our work between May 2006 and November 2006 in accordance with generally accepted government auditing standards.
We provided a draft of the briefing to the Commissioner of the Social Security Administration on November 9, 2006. In response to our statement that beneficiaries might not be aware of the income-based premiums, SSA noted that this information was provided in the 2007 “Medicare and You” handbook, which was sent to all Medicare beneficiaries by the end of October 2006. SSA also noted that the current hiring freeze, which could affect SSA’s ability to respond to income-based premium inquiries, was a result of the continuing resolution under which SSA is currently operating. We considered these comments, as well as SSA’s technical comments, and made changes as appropriate. We have included the agency’s comments in Enclosure II. We are sending copies of this briefing to the Commissioner of Social Security, the Commissioner of Internal Revenue, and the Secretary of Health and Human Services, and other interested parties. Copies will also be made available to others upon request. In addition, the report will be available at no charge on GAO’s Web site at http://www.gao.gov. Please contact us at the number shown below if you or your staff have any questions about this report. Contact points for our Offices of Congressional Relations and Public Affairs may be found on the last page of this briefing.
Sincerely yours,
Barbara D. Bovbjerg Director, Education, Workforce, and Income Security Issues
Ford's Death Probably Means Federal Employees Get Extra Day Off
It has been traditional to close federal offices on the day of the state funeral of a former president. These state funerals take time to arrange and seem to always occur on what would otherwise be a workday. Funeral plans have not yet been announced for former President Ford who just died, but we can probably add another day to each of Social Security's backlogs.
Dec 26, 2006
Furlough Worries Continue
From the minutes of a December 12, 2006 conference call of the Executive Committee of the National Council of Social Security Management Associations (NCSSMA), an organization of Social Security management personnel:
A press release from leading Democrats about continuing funding for a long-term CR [continuing resolution for funding of federal government operations] for the entire FY [fiscal year] 2007 was shared with the EC [executive committee] late yesterday. The details are trickling in and there is not a great deal of specifics available at this time. We will be working to come out as best as possible in the CR. NCSSMA will continue to make contacts in the House and Senate to seek an increased level of funding for SSA above the FY 06 level. ...
On the furlough issue, Rachel [Emmons, NCSSMA's lobbyist] thinks after looking closely at the language in the CR that the mechanism has been provided to prevent agencies from having to implement furloughs during the time from now through February 15 (expiration date of the current CR). If the entire year CR is enacted at the Senate-recommended level of funding it represents a $54 million cut from FY06. NCSSMA needs to be focused on impacting the CR number as positively as possible for SSA. Rachel says it is way too early in the process for us to know exactly where we stand. Rick [Warsinskey, NCSSMA president] believes that we still have a good possibility of having furloughs after February 15 if the full year funding is written so that adequate funding is not provided for SSA. He believes that is why we need to work on a strategy where we can focus on getting information to the appropriators. We will ask members to send in information about what is going on in their offices. We need to get this information in by mid-January. We will reach out to the organizations that worked with us on the Snowe-Conrad SSA funding letter as we continue to work on the FY07 appropriations and the FY08 budget as well.
Dec 25, 2006
Dec 24, 2006
Bush Retains Belief In Social Security Reform
It sounds as if the President is interested in a deal that would go something like this. Democrats would get to raise the FICA tax and cut Social Security benefits (and we all know they are eager to raise taxes and cut benefits) and the President would get some sort of private accounts as an add-on to Social Security. Basically, the President wants to reluctantly agree to let the Democrats do the unpopular stuff, while he takes credit for anything that might be popular. From the Washington Post:
Bush's new flexibility on Social Security is part of a larger White House plan to renew the effort to tame the rising costs of government entitlement programs as the nation's population ages. Treasury Secretary Henry M. Paulson Jr., who enjoys strong credibility among Democrats and Republicans, has been making the rounds on Capitol Hill to talk about restructuring Social Security, emphasizing that there are no preconceptions.
Administration officials have said the White House is willing to listen to other ideas, including personal savings accounts that do not involve diverting Social Security payroll taxes, as well as higher payroll taxes to help cover the expected growth in the program's costs. Still, Bush emphasized that young workers should be allowed to divert a portion of their Social Security taxes into private retirement accounts, a proposal that went nowhere in Congress last year.
"I will tell you this: In an issue like this, unless the president tries, nothing is going to happen," Bush said. "Without presidential involvement, nothing will happen. So we have a chance, and I'm going to work it."
Dec 23, 2006
CCD Annual Meeting
The Coalition for Citizens with Disability (CCD) is an umbrella organization with a membership composed of many non-profits involved in helping "citizens with disabilities" as their name says. The CCD is a major player in Social Security disability matters, especially when Democrats control Congress. The CCD held its annual meeting on December 19. The CCD received a report from its Social Security Task Force and gave its annual Chairperson's Award to Jo Anne Barnhart, the outgoing Commissioner of Social Security.
Dec 22, 2006
Settlement On Food Stamps Loss In Welfare To SSI Transition
After "welfare as we know it", which was actually Aid to Families with Dependent Children (AFDC), was dramatically altered during the Clinton administration to something now known as Temporary Assistance to Needy Families (TANF), it became clear that many who had been receiving AFDC were really disabled. They had gone on AFDC because dealing with the welfare bureaucracy was less difficult than dealing with the Social Security bureaucracy to get SSI, which says something about the Social Security bureaucracy. After the switch from AFDC to TANF made staying indefinitely on "welfare as we know it" impossible, most of these folks ended up getting on Supplemental Security Income (SSI). In the process, many ended up losing Food Stamps because of bureaucratic mistakes, at least in New York state. There has been litigation over this. The New York Times reports that the case has now been settled and 100,000 New York residents will be getting a total of $4.3 million to make up for the errors. Whether this problem extended to other states is a good question.
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