Government Shutdown Averted -- At What Cost For Social Security?

A we all know by now, a government shutdown was averted at the last minute. The cost was agreement to massive cuts in appropriations for government operations. Probably, we will not know until early next week what the cost will be for the Social Security Administration. Let us hope that cost will be minor.

I would suggest that eliminating lump sum death benefits would save money. The minuscule $255 payment is not worth administering. If that is not enough, eliminate parents benefits, the benefits that go to the dependant parents of decedents and Social Security recipients and make the change prospective. It is such an obscure benefit that eliminating it would cause little damage to the social safety net. Supplemental Security Income would always be available. Do people who qualify for parents benefits really deserve anything more than SSI?

Bad Timing

I will be having surgery later this morning. As a result, I will be unable to post on this blog for at least a day, probably two days, maybe longer. You never know about these things.

I am sure that every media outlet in the U.S. will be relaying the news about the possible government shutdown.

Update: Thanks for the good wishes. I am home and not feeling too bad, considering. I think I will post something soon about what brought about the surgery, if for no other reason to reduce the number of times that I will have to repeat a lengthy explanation. I know that everyone thinks their medical condition is fascinating to other people. I will try not to bore readers. I will say now that my story begins with quite a bang and goes into an area of medicine that you just about never see in representing Social Security disability claimants even though it is very close to an area we see all the time.

Groundhog Day

A press release from the House Social Security Subcommittee:

Chairman Johnson Announces Hearing on the Social Security Administration’s Role in Verifying Employment Eligibility

Apr 14, 2011

Focus Of The Hearing:

The hearing will focus on the progress made and challenges created by E-Verify, including the potential burdens on employees, employers and the SSA. The Subcommittee will examine how the current shortcomings of the system could be improved to ease the verification process during this critical time of job creation. Finally, the Subcommittee will also review other proposals to expand employment eligibility verification, including enhancing the Social Security card with tamper-proof, counterfeit-resistant or biometric features and increasing enforcement through the sharing of taxpayer wage information.

Republicans seem to be doing a replay of the exact same hearings they held the last time they were in the majority in the House of Representatives. To be honest, Democrats did the same but with different topics. There is less overlap than there should be.

Where We Stand

From the Political Wire:

Senate Majority Leader Harry Reid (D-NV) told constituents this morning that he expects a government shutdown, National Journal reports.

Later, on the Senate floor, Reid said, "The numbers are basically there. But I am not near as optimistic -- and that's an understatement -- as I was 11 hours ago."

Meanwhile, President Obama has called for an early afternoon meeting with House Speaker John Boehner (R-OH) and Reid in an attempt to break the impasse.

Update: I should add that Social Security is being a lot less than forthright about how big their furlough will be. In 1995, the last time there was a shutdown, almost everyone at Social Security was furloughed initially but then most employees were called back to work three days later. Will we have a repeat of that experience? Will we start out where things ended up after three days in 1995? Will there be a hard line and almost everyone furloughed for the duration of the shutdown? Social Security is not saying. It is not Social Security's call. The White House is making these decisions.

Rearrange Those Deck Chairs

From a press release:

Congressman Sam Johnson (R-TX), Chairman, Subcommittee on Social Security of the Committee on Ways and Means, today announced that the Subcommittee will hold a hearing to examine the role of Social Security numbers in identity theft and options to guard their privacy. The hearing will take place on Wednesday, April 13, 2011, in room B-318 Rayburn House Office Building, beginning at 2:00 p.m.

New Endocrine Listings

Social Security is publishing new Listings for endocrine disorders. They will appear in the Federal Register tomorrow. The new Listings are obviously intended to make it more difficult to qualify for disability benefits based upon diabetes. Of course, Social Security denies any intent to do what it is obviously doing.

Ticket To Work -- A Waste Of Money

From the New York Times:

... Social Security offers disability beneficiaries some incentive to ease back into the work force. For nine months after starting a job, they can earn any amount without threatening their benefits. For another three years, if their income falls below $1,000 a month, they can immediately receive full benefits again. And they can keep Medicare coverage for eight and a half years after going back to work, something few beneficiaries may realize.

In 1999, Congress passed a law authorizing the Ticket to Work program, which offers beneficiaries practical help with a job search. Social Security also waives medical reviews for those who participate.

So far, the program has had little success. Out of 12.5 million disabled workers and those who receive benefits for the disabled poor, only 13,656 returned to work over the last two and a half years, with less than a third of them earning enough to drop the benefits....

Officials say they have streamlined and simplified the Ticket to Work program. But even with more awareness, they say not enough people could go back to work to make a difference in the disability trust fund.

“We could make this program exponentially more successful and it wouldn’t be enough to dramatically improve the solvency picture,” said Michael J. Astrue, the commissioner of Social Security. “You do it because work — for people who can work — gives them dignity and improves their economic condition.”

I have a suggestion. Ticket to Work doesn't work. There's no way to make it work. Let's get over our fantasies that there's some way to return large numbers of disabled people to work. Just end Ticket to Work and save the money.

Furloughted Workers Should Not Expect To Be Paid

From the Washington Post:

Rep. James Moran (D-Va), whose Northern Virginia district is home to thousands of federal employees, said furloughed workers should not expect to be paid, based on feedback he is getting from Republican colleagues in Congress.

“It is highly unlikely that about 1 million federal employees who are not working will ever be reimbursed,” Moran said in a conference call Wednesday with reporters. He called the majority of his GOP colleagues “far more anti-government in terms of their mindset” than former House Speaker Newt Gingrich during the 1990s shutdown, when Congress agreed to reimburse furloughed workers retroactively.