Jan 12, 2015

ALJ Daugherty Agreed To Voluntary Disbarment

     I missed this earlier. Back in May 2014, retired Administrative Law Judge David Daugherty agreed to voluntary disbarment. It had been alleged that Daugherty approved claims that didn't meet government guidelines, falsified time sheets and improperly assigned attorney Eric Conn's cases to himself. 
     So far, as best I can tell, despite considerable publicity given to the case, neither Daugherty nor Conn has been charged with any crime. While the Kentucky Bar Association was looking at the allegations against Conn in 2013, I cannot find any indication that they ever took action against him.

Jan 11, 2015

Driving While Blind

     ABC ran a report Friday night on a man drawing Social Security disability benefits on account of blindness who was working without telling the agency and also driving. Maybe this is how Republicans plan to stigmatize Social Security disability recipients -- hidden videos of isolated individuals committing fraud. Sounds weak to me but maybe it will work. There are plenty of videos of people robbing convenience stores but we aren't planning to close them.
     By the way, I've had a couple of clients over the years who were unquestionably blind as that term is defined in the Social Security Act but who drove occasionally. They weren't defrauding Social Security but they were endangering everyone on the roads. Blindness as defined in the Social Security Act isn't the same as complete loss of vision. 20/200, the most important component of the definition of blindness in the Social Security Act, means things that are 20 feet away are seen about as well as a normally sighted person sees them at 200 feet but people with 20/200 vision still have some vision. I told the blind clients to stop driving, by the way.

Jan 10, 2015

Is This The Plan?

     Mark Miller at Reuters writes that "House leaders appear to be maneuvering to push through an SSDI [Social Security Disability Insurance] fix during the lame duck session following the 2016 elections."
     If this is the plan, it's not much of a plan. The timing of the exhaustion of the Disability Trust Fund probably won't come right in the December 2016/January 2017 time period.  Even if it does, Social Security disability would become a red hot issue for the 2016 election. Do Republicans really want that?

Jan 9, 2015

How Does GOP Pass A Bill Cutting Social Security Disability?

     To clarify something I posted yesterday, I don't really think it's possible that the House of Representatives will end the Lump Sum Death Payment (LSDP) in order to allow transfers from the Retirement to the Disability Trust Fund. That would work under the rules they just passed but, no, even though ending the LSPD makes perfect sense -- the payments are so tiny they it probably costs more to administer them than is actually paid out -- Republicans would never end the LSDP because they're afraid of being accused of cutting Social Security. And there's the problem for Republicans. If they're afraid of being accused of cutting Social Security if they end the LSDP, a tiny benefit that ought to be eliminated, won't they be afraid they'll be accused of cutting Social Security if they really cut Social Security disability benefits? No doubt they tell themselves that Social Security disability isn't "really" Social Security but do they "really" believe that? More important, do voters "really" believe that? I'm pretty sure that if Republicans cut Social Security disability they'll see campaign ads run against them for cutting Social Security. They can tell everyone that didn't "really" cut Social Security since Social Security disability isn't "really" Social Security. They can also claim that Social Security disability is full of fraud (even though the evidence shows that isn't true) but that's not likely to help. So, how are Republicans really going to pass a bill cutting Social Security disability?I have no idea.

Hardly A Booming Business

     The final 2014 figures for payments of fees to attorneys and others representing Social Security claimants are in. These are amounts paid by the claimants themselves out of their back benefits. Social Security is only a conduit. The total amount paid in 2014 was $1,140,183,312.10. This is 8% less than the 2013 total of $1,226,129,697.74. Fee payments have been going down since 2010. The total fee payments per year are now down 20% from their 2010 peak.

Jan 7, 2015

Pithy

Weak Jujitsu

     Here's the actual language of the new rule in the House of Representatives:
(1) During the One Hundred Fourteenth Congress, it shall not be in order to consider a bill or joint resolution, or an amendment thereto or conference report thereon, that reduces the actuarial balance by at least .01 percent of the present value of future taxable payroll of the Federal Old-Age and Survivors Insurance Trust Fund established under section 201(a) of the Social Security Act for the 75-year period utilized in the most recent annual report of the Board of Trustees provided pursuant to section 201(c)(2) of the Social Security Act.
(2) EXCEPTION.—Paragraph (1) shall not apply to a measure that would improve the actuarial balance of the combined balance in the Federal Old-Age and Survivors Insurance Trust Fund and the Federal Disability Insurance Trust Fund for the 75-year period utilized in the most recent annual report of the Board of Trustees provided pursuant to section 201(c)(2) of the Social Security Act.
     Under this rule, even the most minor change that reduces either disability or retirement payments would allow for the transfer of funds between the two trust funds. Eliminating the lump sum death payment, for instance, would be enough to allow the transfer between the two trust funds and every knowledgeable person knows that should be eliminated. My idea of playing around with the benefit offset for those dually eligible for disability benefits and retirement or survivor benefits wouldn't work since that would leave the actuarial balance of the combined trust funds unchanged -- although that plus some minor change reducing either disability or retirement benefits, such as eliminating the lump sum death payment, would work. Reversing the offset for those dually eligible for Disability Insurance Benefits and SSI would work since it would reduce the combined balance of the two funds by shifting some costs to SSI. Nobody's benefits would be cut. Nobody's taxes would be increased. There would be no effect upon the federal deficit.The windfall offset already reduces Disability Insurance Benefits for back SSI benefits. Just extend that to ongoing payments and the problem is solved. In other words, it will be easy to work around this rule. You don't have to cut anyone's benefits. If you do make a cut, it can be quite a minor cut.