Despite Questions Social Security Plans To Plow Ahead With $500 Million National Data Center

     From Gazette.Net:

Plans for a $500 million office building for the Social Security Administration predicted to bring 200 jobs to Frederick County are progressing after the recent sale of an Urbana property.

A letter from the Frederick County Board of Commissioners to the Social Security Administration on Tuesday expressed the county’s excitement over the project. ...

The new building is planned for use predominantly as a primary data operations center for the administration, along with some office space.The 400,000-square-foot building will incorporate sustainable technologies using energy-efficient heating and cooling systems, on-site renewable energy sources, water conservation, and the use of sustainable materials, according to the county’s letter.

Construction is expected to begin in early 2012.

      Meanwhile, Vivek Kundra, the Chief Information Officer for the Obama administration until last month, has written an op ed piece for the New York Times arguing that "governments around the world are wasting billions of dollars on unnecessary information technology" because of what he calls the "I.T. cartel ... [a] powerful group of private contractors encourages reliance on inefficient software and hardware that is expensive to acquire and to maintain." He argues for cloud computing, noting that the General Services Administration cuts its information technology costs by 50% using cloud computing. He states that cloud computing is "often far more secure than traditional computing, because companies like Google and Amazon can attract and retain cyber-security personnel of a higher quality than many governmental agencies." 
     This comes on the heels of the firing of Ephraim Feig, who had been Social Security's Associate Chief Information Officer for Vision and Strategy. Feig was apparently advocating the same position as Kundra. This also comes on the heels of news that the federal government is closing 800 data centers at the moment.
     As tight as money is at Social Security, there is an urgent need for a Congressional hearing on Social Security's planned national data center. I do not have the knowledge to debate the wisdom of building an expensive data center for Social Security but there is an obvious controversy that needs a public airing. There is too much money at stake not to fully explore the issues.

Maybe He Really Is Disabled

From the Traverse City Record-Eagle:

A Kingsley man who crashed his van into the Social Security Administration Office in Traverse City "in a fit of rage" over repeated disability claim denials finally had his claim approved.

Douglas McCallum, 47, stands to receive about $1,000 a month in Social Security disability benefits, despite pending criminal charges for damaging the SSA office building and sign.

What Is The Point Of The Appeals Council?

     In its current form, does the Appeals Council have any legitimate function? The Appeals Council usually takes at least a year and often much longer. It reverses only about 5% of the decisions it reviews and remands only about 20%. I have never seen any rationality in Appeal Council decisions. Frequently, review is denied even though the Administrative Law Judge (ALJ) decision has obvious, severe defects. This is not just my judgment. Social Security's Office of General Counsel (OGC) clearly agrees with me. Often, after attorneys file civil actions is Social Security cases, OGC takes a voluntary remand because they know they cannot defend the ALJ decision. This probably happens in 25% or more of cases. The remands and reversals that do come out of the Appeals Council seem almost to have been selected at random.

     Does the Appeals Council serve any purpose other than to delay and frustrate claimants who want to obtain review of ALJ decisions? To put it another way, I ask myself the question: "If you could waive Appeals Council review and proceed directly to District Court, would you?" The answer to me is obviously "yes."

    The question of whether the Appeals Council should be abolished has been around a long time. It has usually been coupled with the question of whether reconsideration should be abolished. However, reconsideration does not waste nearly as much time as the Appeal Council and, in its own way, is not nearly as irrational as the Appeals Council. 

     The calls to abolish the Appeals Council were pretty loud before 1999 when claimants were allowed to file new claims while cases were pending at the Appeals Council. In fact, the pressure was so bad at that time that Social Security employees often refused to enforce the policy that sought to prevent a claimant from filing a new claim while an appeal was pending. The 1999 decision to allow a claimant to file a new claim and an appeal released much of the pressure. The issuance of Social Security Ruling 11-1p, which seeks to prevent a claimant from filing a new claim and an appeal, bottles up that pressure once again. This time I think the pressure will build more rapidly because the Appeals Council is even less effective than it was in 1999. As of 1999, if I remember correctly, the Appeals Council was remanding in something like 30% of cases. It's now about 20%, making the Appeals Council even more useless than it was in 1999.

Quiz Answer

Question: Ms. A is a native of Italy. She married an American and emigrated to the United States in 1991. She eventually became a citizen. She is now divorced. She worked for many years under U.S. Social Security law. Recently, she became sick. Ms. A has only modest income from investments. Ms. A decides to move back to Italy and live with her sister since she will be eligible for free medical care in Italy but not in the United States. Ms. A files a claim for U.S. Social Security disability insurance benefits in Italy. Which Disability Determination Service (DDS) will make the initial determination on her disability claim?

Possible answers:
DDS for the last state in which Ms. A lived
DDS for the District of Columbia
International DDS within the Office of International Operations
Federal DDS
Under the U.S.-Italy Social Security treaty, the Italian Social Security system using U.S. law

Answer: The  International DDS which is part of the Office of International Operations.

Progress On Electronic Access

From Electronic Services for Claimant Representatives, a report by Social Security's Office of Inspector General (footnotes omitted):

In Fiscal Year (FY) 2010, the Office of Disability Adjudication and Review (ODAR) processed approximately 738,000 hearings. About 78 percent of these claimants were represented by another party....

In the first 8 months of FY 2011, claimants filed approximately 52 percent of all requests for hearings using iAppeals. Claimant use of iAppeals has increased over the years, thereby removing workloads from SSA’s FOs [Social Security's Field Offices].

As of the end of June 2011, SSA enrolled approximately 6,400 claimant representatives in ARS [Appointed Representative Services, that is electronic access to claimant files], corresponding to approximately 71 percent of the represented claimants who filed appeals. ...

SSA plans to add a number of features. For instance, ODAR is considering providing claimant representatives ARS access to the digital recording of the hearing. Additionally, SSA plans to create a hearing office status report in ARS that will provide claimant representatives information on all their pending cases. This status report should be available in January 2012.

Quiz

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Decision Fatigue

From the New York Times Magazine:

Three men doing time in Israeli prisons recently appeared before a parole board consisting of a judge, a criminologist and a social worker. The three prisoners had completed at least two-thirds of their sentences, but the parole board granted freedom to only one of them. Guess which one:

• Case 1 (heard at 8:50 a.m.): An Arab Israeli serving a 30-month sentence for fraud.
• Case 2 (heard at 3:10 p.m.): A Jewish Israeli serving a 16-month sentence for assault.
• Case 3 (heard at 4:25 p.m.): An Arab Israeli serving a 30-month sentence for fraud. 

There was a pattern to the parole board’s decisions, but it wasn’t related to the men’s ethnic backgrounds, crimes or sentences. It was all about timing, as researchers discovered by analyzing more than 1,100 decisions over the course of a year. Judges, who would hear the prisoners’ appeals and then get advice from the other members of the board, approved parole in about a third of the cases, but the probability of being paroled fluctuated wildly throughout the day. Prisoners who appeared early in the morning received parole about 70 percent of the time, while those who appeared late in the day were paroled less than 10 percent of the time.

The odds favored the prisoner who appeared at 8:50 a.m. — and he did in fact receive parole. But even though the other Arab Israeli prisoner was serving the same sentence for the same crime — fraud — the odds were against him when he appeared (on a different day) at 4:25 in the afternoon. He was denied parole, as was the Jewish Israeli prisoner at 3:10 p.m, whose sentence was shorter than that of the man who was released. They were just asking for parole at the wrong time of day. 

There was nothing malicious or even unusual about the judges’ behavior, which was reported earlier this year by Jonathan Levav of Stanford and Shai Danziger of Ben-Gurion University. The judges’ erratic judgment was due to the occupational hazard of being, as George W. Bush once put it, “the decider.” The mental work of ruling on case after case, whatever the individual merits, wore them down. This sort of decision fatigue can make quarterbacks prone to dubious choices late in the game and C.F.O.’s prone to disastrous dalliances late in the evening. It routinely warps the judgment of everyone, executive and nonexecutive, rich and poor — in fact, it can take a special toll on the poor. Yet few people are even aware of it, and researchers are only beginning to understand why it happens and how to counteract it. 

 Do you think this has any relevance to Social Security?

Did You Know This Guy Is Leading In the Republican Presidential Polls?

The Houston Chronicle quotes Texas governor and Republican Presidential candidate Rick Perry as saying that Social Security "is a Ponzi scheme for these young people. The idea that they're working and paying into Social Security today, that the current program is going to be there for them, is a lie ... It is a monstrous lie on this generation, and we can't do that to them."