Is This Right?

     This is from a recent report by Social Security's Office of Inspector General:

SSA’s [Social Security Administration's] administrative finality rules permit it to continue paying incorrect payment amounts to some beneficiaries and recipients. During our prior and current reviews, we determined that SSA did not correct beneficiary and recipients’ payment amounts when it invoked administrative finality. For example, we identified a beneficiary receiving a full retirement benefit under her own SSN [Social Security Number] and another full benefit under her deceased spouse’s SSN that resulted in an $870 monthly overpayment. The overpayments started in July 1982 and created a total overpayment of approximately $215,000. Since our 2007 recommendation to revise its administrative finality rules, SSA has paid this beneficiary approximately an additional $40,000.10

We identified another beneficiary receiving a full retirement benefit under her own SSN and a full benefit under her deceased spouse’s SSN that resulted in a $373 monthly overpayment. The overpayments started in June 1988 and created a total overpayment of approximately $85,000. SSA had paid this beneficiary approximately $16,000 since our 2007 recommendation. Because of SSA’s administrative finality rules, it will not reopen these cases and these overpayments will continue increasing throughout the beneficiaries’ lifetimes. In addition, SSA does not pursue recovery of these types of improper payments.

      Is this an accurate statement of Social Security's position? I haven't seen one lately but I've certainly seen cases in past years where Social Security changed current benefits and declared large overpayments in this type of case.
     Really, OIG should not be pressuring Social Security on the overpayment part of this kind of case. There's a very good argument that it's against equity and good conscience to try to collect an overpayment when the mistake was clearly made by the agency, could not have reasonably been caught by the beneficiary but should have been caught by the agency's data systems. "Against equity and good conscience" is enough under the statute to get an overpayment waived.

Whether Furloughs And RIFs Come To Social Security To Be Determined In Next Few Weeks

      Update: According to Politico, the basic deal described below has been struck but the devil is in the detail for Social Security and we probably won't know the details until early September.
     The Washington Post reports that Congressional leaders are nearing agreement on a Continuing Resolution to fund government operations in the first half of the 2013 fiscal year (FY), which begins on October 1, 2012. Under the agreement, agencies would suffer an across the board reduction in their budgets in the percentage specified by last year's budget agreement. According to the article:

Congressional leaders are likely to announce that they have reached an agreement in principle but leave passage of the deal until after Congress returns from its August recess. The timeline would allow some details and budget crunching to take place, but it also would provide a window for the deal to go awry if outside groups pressure Republicans to fight for deeper spending cuts.

     For Social Security, the key language here is "details and budget crunching." This means there would be some departures from the across the board spending cuts. Social Security is in bad need of a major departure from the across the board spending cuts. According to a Senate Finance Committee report if the across the board spending cuts are applied to Social Security:

Social Security would lose 5,000 employees and all of the agency's employees and all Disability Determination Services employees would suffer approximately six weeks of furloughs. The average processing time at the initial level on disability claims would raise from 111 days to 180 days and the number of pending disability claims would nearly double from 861,000 to almost 1.5 million by the end of the fiscal year.

     You simply cut those numbers in half for a six month continuing resolution. Two and a half days a month of furloughs for ALL Social Security employees. I don't think you can lose 2,500 jobs without a significant reduction in force (RIF). This all starts on October 1, 2012 without Congress taking special action to protect Social Security. Other agencies are facing the same issues and are seeking the same sort of special exemptions from the appropriations cuts.

Amazing Op Ed Piece In The Washington Post

     From an Op Ed piece in the Washington Post yesterday by Charles Lane with some comments by me in brackets:

The Americans With Disabilities Act, passed with bipartisan support in 1990 at the urging of then-President George H.W. Bush, enshrines the notion that every American can and should hold a job regardless of physical or mental limitations. 

Under the ADA, employers who refuse to hire or promote the disabled may be liable for money damages in federal court.  [Whoa. Time out. That is not what the Americans with Disabilities Act says. That's what a lot of "disability advocates" wish it said.What it actually says is that employers must give "reasonable accommodation" to people with disabilities. There is nothing in the ADA that says or suggests that "every" American can or should hold a job. That would be absurd. If the Washington Post advertises a data entry job does it have to hire a quadriplegic who applies? Of course not. It doesn't have to hire the quadriplegic for that or any other job unless it could do so with only reasonable accommodation and that sure wouldn't be the case for a data entry job. Hire the quadriplegic for an editorial writing job such as Mr. Lane holds? Maybe, but I wouldn't bet on the courts being willing to enforce such a right. The words "reasonable accommodation" are awfully vague and the courts have been almost completely unwilling to enforce them. The Americans with Disabilities Act doesn't even mean what it appears to mean and what it appears to mean is vastly less than what Mr. Lane thinks it means.]

Social Security Disability Insurance, however, pays people who can show that they are too mentally or physically impaired to remain in the labor force. In short, for many workers, SSDI creates a quasi-right not to work. [Yes, just as it should since there are many people who are too sick to work. Ever call in sick, Mr. Lane? Why? You are of the opinion that no illness should ever prevent a person from working. Why would you be so lazy as to call in sick?]...

In 1960, however, Congress removed the minimum age requirement [of 50], and in 1965, it allowed people to qualify if they suffered from a condition rendering them unable to “engage in substantial gainful activity” for a year or more, including mental and musculoskeletal ailments.  [No, what Congress actually did in 1965 was to eliminate the requirement that disability be permanent. Now disability has to have lasted or be expected to last at least a year. Mental and musculoskeletal ailments that were permanent -- and most were and are -- were already covered before 1965.]

After that, the rolls swelled with people claiming crippling back aches and depression. Both the Carter and Reagan administrations tried to cull undeserving cases, but the resulting backlash was so strong that Congress actually liberalized the rules in 1984. [What makes you so sure they were undeserving? Try to cut huge numbers of people off disability benefits in 2013 and see what happens. It will be 1984 all over again. Go ahead, I dare you, Mitt Romney.  Follow Lane's advice if you're elected President.] In 2010, mental and musculoskeletal conditions accounted for 54 percent of all new SSDI cases, according to the CBO [Congressional Budget Office]. ...

I don’t mean to imply that all, or even most, SSDI beneficiaries are malingering. [So kind of you, Mr. Lane, to acknowledge that not everyone on Social Security disability benefits is a malingerer. Honestly, I think you need to meet a cross section of those receiving Social Security disability benefits before you start suggesting that many people receiving Social Security disability benefits are malingerers. Essentially no one who has contact with Social Security disability recipients on a regular basis would agree with you. You don't know what you're talking about.] Indeed, some of the recent increase in enrollment would have occurred anyway due to the aging of the population.

Failure To Follow Up On Failure To Cash Checks

     Here's another of the many ways that Social Security has trouble fulfilling its mission because of lack of staff. An Inspector General report shows that Social Security is having a hard time dealing with situations in which a claimant fails to cash his or her Social Security check. The failure could indicate many things that Social Security should address, such as the claimant being dead, the claimant being mentally incompetent or a representative payee being irresponsible but the agency doesn't know unless it does an adequate follow up and that takes staff time but staff time is in short supply at Social Security. Social Security tries to follow up on these cases but isn't doing all that it should. 

     I suppose that switching to electronic payment might seem to be the solution for the problem but, if anything, electronic payment merely hides problems that need resolution.
     Congress may not like it, Social Security management may not like it, but the Social Security Administration cannot avoid social work duties. People's lives tend to get a bit messy when they get older or become disabled. Dealing with that messiness is an inherent part of the agency's mission. It's social work and it takes staff. Staff costs money. If you don't spend the money to allow an adequate staff, vulnerable people suffer and taxpayper money is wasted.

Romney Praises Government Run Health Care

     I suppose this is off topic but I cannot resist posting this from BuzzFeed Politics:

“Do you realize what health care spending is as a percentage of the GDP in Israel? eight percent," Romney told donors at a fundraiser at the King David Hotel in Jerusalem, speaking of a health care system that is compulsory for Israelis and funded by the government. "You spend eight percent of GDP [Gross Domestic Product] on health care. You're a pretty healthy nation. We spend 18% of our GDP on health care. Ten percentage points more. ... Our gap with Israel is 10 points of GDP. We have to find ways — not just to provide health care to more people, but to find ways to find and manage our health care costs."

What Is A Somatic Contractor?

     Can anyone explain this contracting notice posted by Social Security?

The Social Security Administration (SSA) is seeking to award three somatic RMC contractors to establish Regional Medical Contractors (RMC) Blanket Purchase Agreements (BPAs). Under a BPA, the contractor will assess and document impairment severity in SSA disability claims based on the listing of impairments in SSA'S Program Operations Manual System (POMS) Section DI 34000.000. Contractors may also be asked to provide additional services that are related to their area of specialization but not directly related to any particular disability claim.

Five Field Offices To Close

     From the Federal Times:

The Social Security Administration will close five field offices by the end of September, according to the union representing agency employees.

Those five, among almost 1,300 nationwide, are in Biloxi, Miss., Ketchikan, Alaska; Louisville, Ky.; Washington, D.C.; and Clinton, Iowa, the American Federation of Government Employees said in a news release.

The agency has already closed eight field offices since January.

In an email, SSA spokesman Mark Hinkle said the five offices are being consolidated with others and no worker will lose their jobs. The single employee in the Ketchikan office is retiring, Hinkle said. ...

“Given the tight budget situation, we’ve had to make tough choices, including consolidating a small number of our offices,” Hinkle said. ...

The latest step is already drawing protests from lawmakers who represent affected communities. Closing the Ketchikan field office would reportedly save only $100,000, members of the Alaska delegation said in a July 13 letter to Social Security Commissioner Michael Astrue. They urged Astrue to consider “all feasible alternatives.”

Hearing On Removing SSNs From Medicare Cards -- What Do You Use Instead?

     From a press release:

House Ways and Means Social Security Subcommittee Chairman Sam Johnson (R-TX) and Health Subcommittee Chairman Wally Herger (R-CA) today announced that the Subcommittees will hold a joint hearing on removing Social Security numbers from beneficiaries’ Medicare cards.  The hearing will take place on Wednesday, August 1, 2012, in 1100 Longworth House Office Building, beginning at 9:30 A.M. ...

In 2008, the Social Security Administration (SSA) Inspector General found that displaying SSNs on beneficiary Medicare cards unnecessarily places millions of Americans at risk for identity theft and recommended that the SSN be removed from Medicare cards.  Also in 2008, the House of Representatives passed H.R. 6600, the “Medicare Identity Theft Prevention Act of 2008,” introduced by Representatives Lloyd Doggett (D-TX) and Sam Johnson (R-TX), directing the Secretary of Health and Human Services (HHS) to establish cost-effective procedures to ensure that SSNs are not included on Medicare cards moving forward.  This legislation passed the House by voice vote on September 28, 2008.  Unfortunately, the Senate did not act on this legislation. ...

To date, CMS [Center for Medicare and Medicaid Services] has not developed a plan for removing the SSN from the Medicare card to protect beneficiaries from identity theft and protect taxpayers from fraudulent billing.