Jan 31, 2009

Action Line Gets Results

The Miami Herald "Action Line" helps a claimant get their back benefits.

I will take a guess at what happened. It was what I call a "phantom windfall offset." The field office took a Supplemental Security Income (SSI) claim and quickly denied it because the claimant had too much income. However, once the Disability Insurance Benefits claim was approved, the SSI claim held up payment of back benefits, because Social Security's computers would not allow payment of the back Disability Insurance Benefits until the amount of the SSI payments were known, so what is called the windfall offset could be done. Of course, since no SSI benefits were being paid, there was no SSI payment information, so the back benefits were not paid. I sometimes wonder if the back benefits ever get paid in these situations if no one complains.

Social Security is well aware of the "phantom windfall offset" problem. IIt eats up a lot of staff time and delays benefits payments for a lot of people. Is Social Security doing anything about it?

Does anyone else have a theory about what happened here?

DDS Employees Being Furloughed In Maryland

The National Association of Disability Examiners (NADE), an organization of personnel who make disability determinations for Social Security, has released a letter it has sent to the governor of Maryland. and another letter it has sent to the governor of California. For historical reasons not worth explaining here, disability examiners work at state government agencies, but all salaries and expenses associated with them are paid for by the federal government. Heck, their e-mail addresses are something like nademember@ssa.gov. But they are still employees of state governments. Because of budgetary problems, the states of Maryland iand California are furloughing some disability examiners. NADE is ticked since the state budget problems have nothing to do with the disability examiners.

Social Security needs to do something to keep this from happening in the future.

Astrue Gives Interview

From Government Executive:
In an interview with Government Executive, Social Security Commissioner Michael Astrue said the tough economy has increased the disability claims caseload by about 10 percent -- or 250,000 cases -- more than the agency had projected and budgeted for. He said SSA also has its hands tied when it comes to hiring new staff to address the increase in claims, largely because it is operating on a continuing resolution through March, which provides funding at fiscal 2008 levels.

"Help is already too late," he said. "The tidal wave is hitting us, and we don't have the money to staff up appropriately." ...

Astrue expressed some hope at the prospect of additional funding in the $819 billion stimulus package that Congress is debating. The House version of the bill, which that chamber passed on Wednesday, would provide $500 million to SSA for two years in fiscal 2009 and fiscal 2010 to help address the disability case backlog. The legislation also would provide $400 million to create a new computer facility to keep up with new responsibilities and heavier workloads, he said.

But Witold Skwierczynski, president of the American Federation of Government Employees' National Council of SSA Field Operations Locals, said on Wednesday that the union has some concerns with the construction of a new computer facility, largely because it thinks the building's high price tag could be put to better use, such as reducing the hearings backlog, hiring additional staff and improving telephone customer service operations.

"The whole point of the stimulus package is to create jobs and spending," Skwierczynski said. "We could hire more SSA employees to do the additional workloads we're getting because of the economic downturn. We'll never get rid of these backlogs unless we have more staff."

Astrue said the agency plans to hire up to 155 additional administrative law judges [ALJs] this fiscal year to help address the backlog and influx of cases. In March, the Office of Personnel Management -- the agency charged with reviewing applications and screening potential ALJs -- will reopen the examination process and submit qualified candidates to SSA for review, he said. But because the new judges need to be hired, relocated and trained, Astrue said, they likely won't start contributing to reducing the backlog until next year. The agency currently employs about 1,200 ALJs.

The commissioner said the $500 million proposed in the stimulus package also would be used to hire additional ALJ support staff. The support staff-to-judge ratio now stands at 4.4-to-1, but the agency hopes to use the stimulus funding to increase the ratio to about 4.6-to-1, he said.

SSA also will look to the stimulus money to improve telephone services and wait times at field offices across the country, since demand for these services is picking up because of the tough economy, Astrue said. "The thing that's saving us is we have a big uptick in people using online services," he said. "Retirement applications are being filed online at a much higher level than they've been historically. That's a saving grace for us."

Astrue is trying to place the blame for the upsurge in claims on the economy even though the upsurge in claims is almost solely due to the aging of the baby boomer generation and was fully anticipated. He is also trying to blame Democrats for not passing the budget proposed by President Bush, even though, in essence, he concedes that the Bush budget was grossly inadequate. He is also claiming that persuading people to use the internet more in their dealings with Social Security will somehow save the day, even though internet retirement claims are unlikely to be more than a minor bit of help. What the public and most of Congress does not understand is that the Social Security Administration is mostly a disability adjudication agency. Nothing done on retirement claims is going to make that much difference because retirement claims do not take that much staff time to begin with. What really eats up staff time is disability claims. Online filing of disability claims is not ready for prime time now. It is not clear whether online filing of disability claims will ever save Social Security much staff time because most people filing disability claims are just too impaired to file anything this complicated online without making lots and lots of mistakes.

Bp the way, hiring 155 more ALJs sounds nice, but it is not much more than what is needed to replace the natural attrition of ALJs. If Social Security wants to beef up its ALJ corps so it can work off its backlogs, it is going to have to hire far more than 155 ALJs. Astrue needs to start talking about going up to 1,500 or even 2,000 ALJs if he wants to convince me he is serious about staffing up to work off the backlog.

And note this quote from Michael Astrue from April 23, 2008, "We have also received some criticism that we are not providing adequate support staff for our administrative law judge corps. In my opinion, that is a fiction designed to sidetrack some of our productivity initiatives." Astrue is now planning to increase the support staff for ALJs! That remark was not off the cuff. It was in his written statement to a Congressional committee. It was a calculated insult. It looks pretty foolish now.

Jan 30, 2009

Obama Administration Puts Off E-Verify Requirement

From Fedblog:
The Department of Homeland Security has delayed—again—a planned rule change that would require federal contractors to verify their employees’ immigration status. Federal contractors and subcontractors will be required to begin using the E-Verify system on May 21, which would allow the Obama administration an opportunity to review the proposal, officials said.

Having Trouble Accepting Reality

Ramesh Ponnuru of the National Review has an Op Ed column in the New York Times. Here are some excerpts:
Democrats will probably get their way on most policy matters over the next two years, but bipartisan accomplishments won’t be easy. ...

Take Social Security, which President Obama has suggested he wants to reform. A strategy that is supported only by Democrats could result in their having to take full responsibility for a tax-heavy bill, and some would balk at that prospect. This means that the most likely result is inaction. ...

The stalemate continues today. To break it, each side will have to give up at least one cherished goal. Republicans must accept that Mr. Bush’s dream of letting individuals invest Social Security funds is dead. In return, Democrats will need to take tax increases off the table. ...

This compromise seems more likely than other solutions (though less likely than further stalemate) , in part because both sides should agree that solvency will require reductions in the growth of benefits. Progressive price indexing is a good option. Under current policy, tomorrow’s retirees get greater benefits than today’s. Progressive indexing would keep that rule for low-income workers. Benefits for high-income workers would, on the other hand, keep up only with inflation. This policy should be palatable to Democrats. If they agree to take the remaining steps to make the program solvent without tax increases, then Republicans should agree to finance the “add-on” savings accounts that Democrats favor.
I agree that stalemate is a likely outcome. Otherwise, this is ridiculous. All Republicans have to do is to give up on privatizing Social Security and Democrats will agree to a solution that relies solely upon benefit cuts? What kind of fantasy world does Ponnuru live in? Privatizing Social Security is way beyond dead. It is no bargaining chip. Ponnuru seems to have trouble understanding that the Republican party has only very limited power in Washington.

Former Mayor Charged With Fraud

From The State, of Columbia, SC:

The same former small-town South Carolina mayor who pleaded guilty to misconduct last year is now charged with Social Security fraud.

U.S. Attorney Walt Wilkins said Wednesday that Alan Lenneau Berry has been charged with embezzling $130,000 in Social Security funds.

Agents said Berry had his salary checks as Latta mayor issued in his wife’s name so he could receive Social Security disability checks from 2004 to 2008.

Jan 29, 2009

Some Reasonable Questions

Here is a slightly edited version of a comment that was posted below:
Can someone please explain how Compassionate Allowances work and for which medical conditions they are used?

Even after reading Social Security's material, I don't think I fully understand how Quick Disability Determination (QDD) and Compassionate Allowance (CA) differ.

I am a Capitol Hill staffer and I might have to answer questions about these initiatives, so I'd like a deeper understanding.

Many thanks.
Anyone want to take a stab at answering these questions?

Tanner Votes For Economic Stimulus Bill

John Tanner, the Chairman of the House Social Security Subcommittee, who is very much a Blue Dog Democrat, voted for the President's economic stimulus bill, which passed the House of Representatives yesterday. There were 11 Democrats in the House who voted against the bill. No Republicans voted for the bill.