Doctor Sentenced For Fraud

     From the Associated Press:

A clinical psychologist in San Diego is going to federal prison for a scheme that allowed patients to falsely collect disability benefits and to avoid taking English tests for U.S. citizenship.

The U.S. attorney's office says Roberto J. Velasquez was sentenced Wednesday to 21 months in prison and ordered to repay more than $1.5 million to the Social Security Administration.

Prosecutors say Velasquez charged dozens of patients $200 each to falsely certify that they were disabled. He made up patient histories and fabricated test results.

Velasquez acknowledged falsifying two types of disability forms - one for some patients to obtain Social Security benefits and another that allowed some 50 immigrants to avoid taking the English language and civics portions of citizenship exams.

Trustees Report No Changes

     From a press release issued by the Social Security Administration:

The Social Security Board of Trustees today released its annual report on the long-term financial status of the Social Security Trust Funds.  The combined assets of the Old-Age and Survivors Insurance, and Disability Insurance (OASDI) Trust Funds are projected to become depleted in 2033, unchanged from last year, with 77 percent of benefits still payable at that time.  The DI [Disability Insurance] Trust Fund will become depleted in 2016, also unchanged from last year’s estimate, with 80 percent of benefits still payable.

Why Do People Retire Earlier Or Later Than They Planned?

From a MetLife study

Unemployment And Disability Claims

     The abstract of  Characteristics and Employment of Applicants for Social Security Disability Insurance Over the Business Cycle, a study by Stephan Lindner and Clark Burdick for the Center for Retirement Research at Boston College:

This study investigates the relationship between fluctuations in the short-term unemployment rate and characteristics of applicants for Social Security Disability Insurance. Using administrative records of the universe of applicants between 1991 and 2008, we find that almost all of the increase in applications and allowances during recession periods is due to increasing applications and allowances of people whose applications are either rejected or determined by vocational factors. People who apply during economic downturns also have lower income and assets at the time of application and lower earnings several years after application. Further decomposition results suggest that difficult macroeconomic conditions during the time of application account for the negative relationship between the unemployment rate and post-application earnings and employment.

     And in the body of the report, these statements:

The results so far suggest that more people with moderate disabilities apply when the unemployment rate is high. Therefore, one would also expect that the fraction of applicants with musculoskeletal impairments or mental disorder increases with the unemployment rate. However, we do not [fi]nd supportive evidence for such a compositional change. ...

[W]e [fi]nd no evidence that younger workers apply more frequently during recessions and that the work capacity of applications during economic downturns is higher.

The New Meme

     The new meme for the right wing echo chamber: Record 10,978,040 Now on Disability; ‘Disability’ Would Be 8th Most Populous State.

     This just in: The number of people living in the United States who have ever been diagnosed with "cancer" is 19 million which would be the 5th most populous state, well ahead of the "Social Security disability state."

Final Rule On Garnishment Of Federal Benefits

     From today's Federal Register:

[Social Security and several other agencies] are adopting as final an interim rule to amend their regulation governing the garnishment of certain Federal benefit payments that are directly deposited to accounts at financial institutions. The rule establishes procedures that financial institutions must follow when they receive a garnishment order against an account holder who receives certain types of Federal benefit payments by direct deposit. The rule requires financial institutions that receive such a garnishment order to determine the sum of such Federal benefit payments deposited to the account during a two month period, and to ensure that the account holder has access to an amount equal to that sum or to the current balance of the account, whichever is lower.

     But Social Security, itself, can garnish these benefits before they're ever paid to collect a 40 year old debt.

Every Little Way

     From EM-13017 issued last week:

SSA [Social Security Administration] is implementing changes to reduce the agency’s printing and mailing costs. We will stop enclosing appeal pamphlets with initial award and denial notices. The body of the notice includes a detailed explanation of the claimant’s appeal rights. We will make appeal pamphlets available upon request. We will no long include return envelopes and pamphlets with any copies of notices to appointed representatives.

What Will They Do With The Report?

     From a presolicitation notice posted by Social Security at FedBizOpps.Gov:

Investigative services to be performed under contract to verify claimants? (sic) U.S. residency to establish eligibility for receiving Supplemental Security Income (SSI) benefits for (sic) the Social Security Administration (SSA). It is anticipated that one award will be made. The service area zones are located along the Mexico-U.S. border in Texas and New Mexico. ... Upon written request, the! contractor shall perform an unannounced onsite visit to the claimant's reported address to verify residency, contact one non-relative neighbor who has first-hand knowledge of individual's residence and submit a written report documenting results.