ALJs Lose In Court Of Appeals

     The Seventh Circuit Court of Appeals has ruled against the lawsuit filed by the Association of Administrative Law Judges, a labor union, claiming that agency productivity guidelines interfered with ALJ independence. 

     I have always thought that the argument that encouraging greater productivity somehow forced ALJs to approve more claims was preposterous. For goodness sake, the ALJs don't write their decisions! 

     The agency has not always treated its ALJs with the respect they deserve but this lawsuit wasn't the answer. The ALJ Association would be on sounder ground if it stuck to issues like removing the decision writers from hearing offices. That's an issue where most people would agree that the agency's position is preposterous.

Skepticism Towards Recipients Of Government Assistance Clouds Judgment On Disability

     From an op ed piece in the L.A Times by Rourke O'Brien, postdoctoral fellow in population health at Harvard University:

[W]e must not let the rhetoric of fraud, abuse and “welfare queens” that accompanied the end of welfare as we know it in the 1990s frame the conversation [on the future of Social Security disability].

Americans generally are skeptical of individuals who receive government benefits, biased to think that they are undeserving. It may be our unyielding belief in everyone's ability to bootstrap his or her way to success through hard work or just the way we esteem self-sufficiency. In the context of cash welfare, research shows that this bias leads us to assume all benefit recipients are lazy. In the context of disability — where benefits are predicated on the existence of a qualifying health condition — our skepticism toward recipients of government assistance may influence the way we evaluate their health.
And new evidence suggests that it does just that.

As part of a nationally representative survey I conducted, about 1,000 individuals were asked to read several vignettes, each describing an individual with a health condition such as chronic back pain, depression or symptoms consistent with attention deficit hyperactivity disorder (for children).

Respondents were then asked to rate the severity of each condition and the degree to which they considered it “disabling.” Before reading the vignettes, the respondents had been randomly assigned to either a treatment or control group. After reading instructions for the study, those in the treatment group read an additional sentence noting that
individuals with disabilities may be eligible for government benefits.

The result? Respondents primed with a reference to government assistance were less likely to consider the health conditions described as severe or disabling relative to the control group. Just hinting at the existence of government assistance was enough to change their evaluation of health conditions. What's more, in follow-up questions, respondents in the treatment group were more likely to blame the individual for her health condition. ...

In efforts to paint some of those applying for disability benefits as undeserving, we tend to question both the severity and the legitimacy of the qualifying health condition. We tell ourselves they don't deserve assistance because the condition just isn't that bad, and regardless, they are to blame for their health problems anyway.

Field Office Hours Expanded

     A press release from Social Security:

Social Security announces as a result of Congress’ approval of the fiscal year 2015 budget, the agency will expand its hours nationwide and offices will be open to the public for an additional hour on Mondays, Tuesdays, Thursdays and Fridays, effective March 16, 2015.  A field office that is usually open from 9:00 a.m. to 3:00 p.m. will remain open until 4:00 p.m.  Offices will continue to close to the public at noon every Wednesday so employees have time to complete current work and reduce backlogs.

“This expansion of office hours reaffirms our commitment to providing the people we serve the option of top-notch, face-to-face assistance in field offices even as we work to expand online services for those who prefer that flexibility,” said Carolyn W. Colvin, Acting Commissioner of Social Security.  “The public expects and deserves world-class customer service and thanks to approved funding, I am pleased we will continue our tradition of exceptional service.”

In recent years, Social Security reduced public office hours due to congressional budget cuts, growing backlogs and staffing losses.  The agency began recovery in fiscal year 2014 by replacing some field office staffing losses and providing overtime support to process critical work.  With the commitment of resources in fiscal year 2015, the agency is able to restore some service hours to the public.

Number On Social Security Disability Leveling Off

Source: Office of Chief Actuary, Social Security Administration

Disability Insurance Benefits Applications And Awards Heading Down

Source: Office of Chief Actuary, Social Security Administration

Less To The New House Rule Than Meets The Eye

     From Politico:

[A]n analysis by Social Security’s chief actuary, Stephen Goss, suggests there’s less to the new House rule [restricting the ability of the House to consider legislation to shift money from Social Security's Retirement Trust Fund to the Disability Trust Fund] than meets the eye. That’s because the point of order is triggered only if lawmakers exceed a “0.01 percent” threshold, which equates to a $38.6 billion cap on what any one Congress can move from the retirement fund, Goss told POLITICO.

That leaves too little room for some long-term, multiyear reallocation of payroll tax revenues but it is enough to get past 2016, by Goss’ calculations.

“We’re projecting [disability] trust funds will be depleted in December of 2016. … The shortfall for the ensuing 12 months would come to about $29 billion,” Goss said. “What that means is that we could have a tax rate reallocation that could apply in 2016 or 2016 and 2017 that would generate up to $30 billion or even $35 billion transferred to the [disability] trust fund, which would at least extend its reserve depletion date for one more year.”

Disability Claims And Awards Decreasing Rapidly

     Note that claims filed and awards made have gone down in each of the last three years. Note also that the number of people drawing benefits is almost the same as it was at the end of last year and that the number has gone down in each of the last three months.

Disabled worker beneficiary statistics by calendar year, quarter, and month

		Awards b			In current payment status		Terminations c
Time period	Number of appli- cations a	Number	Increase over prior period	Percent of appli- cations	Number at end of period	Increase over prior period	Number	Increase over prior period	Termi- nation rate
—by calendar year—
2000 .....	1,330,558	621,650	0.19%	46.72%	5,042,334	3.34%	461,626	6.25%	8.72%
2001 .....	1,498,559	691,309	11.21%	46.13%	5,274,183	4.60%	456,258	-1.16%	8.31%
2002 .....	1,682,454	750,464	8.56%	44.61%	5,543,981	5.12%	479,606	5.12%	8.34%
2003 .....	1,895,521	777,905	3.66%	41.04%	5,873,673	5.95%	450,720	-6.02%	7.46%
2004 .....	2,137,531	797,226	2.48%	37.30%	6,201,362	5.58%	466,332	3.46%	7.32%
2005 .....	2,122,109	832,201	4.39%	39.22%	6,524,582	5.21%	494,592	6.06%	7.36%
2006 .....	2,134,088	812,596	-2.36%	38.08%	6,811,679	4.40%	513,292	3.78%	7.28%
2007 .....	2,190,196	823,106	1.29%	37.58%	7,101,355	4.25%	525,012	2.28%	7.14%
2008 .....	2,320,396	895,011	8.74%	38.57%	7,427,203	4.59%	564,518	7.52%	7.34%
2009 .....	2,816,244	985,940	10.16%	35.01%	7,789,113	4.87%	628,478	11.33%	7.79%
2010 .....	2,935,798	1,052,551	6.76%	35.85%	8,204,710	5.34%	646,387	2.85%	7.64%
2011 .....	2,878,920	1,025,003	-2.62%	35.60%	8,576,067	4.53%	656,902	1.63%	7.42%
2012 .....	2,820,812	979,973	-4.39%	34.74%	8,827,795	2.94%	726,432	10.58%	7.90%
2013 .....	2,640,100	884,894	-9.70%	33.52%	8,942,584	1.30%	767,738	5.69%	8.17%
2014 .....	2,521,459	810,973	-8.35%	32.16%	8,954,518	0.13%	793,646	3.37%	8.37%
—by quarter—
2011 Q1	720,119	258,086	-1.49%	35.84%	8,295,845	1.11%	166,219	3.37%	1.96%
2011 Q2	760,621	268,853	4.17%	35.35%	8,403,449	1.30%	162,166	-2.44%	1.89%
2011 Q3	737,468	259,181	-3.60%	35.14%	8,495,983	1.10%	167,036	3.00%	1.93%
2011 Q4	660,712	238,883	-7.83%	36.16%	8,576,067	0.94%	161,481	-3.33%	1.85%
2012 Q1	724,746	249,638	4.50%	34.44%	8,657,739	0.95%	168,420	4.30%	1.91%
2012 Q2	731,817	245,719	-1.57%	33.58%	8,733,461	0.87%	169,456	0.62%	1.90%
2012 Q3	726,026	241,207	-1.84%	33.22%	8,786,049	0.60%	188,311	11.13%	2.10%
2012 Q4	638,223	243,409	0.91%	38.14%	8,827,795	0.48%	200,245	6.34%	2.22%
2013 Q1	680,292	228,922	-5.95%	33.65%	8,853,614	0.29%	201,245	0.50%	2.22%
2013 Q2	691,519	228,909	-0.01%	33.10%	8,892,515	0.44%	189,796	-5.69%	2.09%
2013 Q3	674,292	225,905	-1.31%	33.50%	8,925,372	0.37%	192,523	1.44%	2.11%
2013 Q4	593,997	201,158	-10.95%	33.87%	8,942,584	0.19%	184,174	-4.34%	2.01%
2014 Q1	637,675	196,765	-2.18%	30.86%	8,932,828	-0.11%	203,364	10.42%	2.22%
2014 Q2	662,498	215,638	9.59%	32.55%	8,954,010	0.24%	192,440	-5.37%	2.10%
2014 Q3	642,096	209,492	-2.85%	32.63%	8,958,415	0.05%	204,413	6.22%	2.22%
2014 Q4	579,190	189,078	-9.74%	32.65%	8,954,518	-0.04%	193,429	-5.37%	2.10%
—by month—
13-Oct	199,340	70,800	-7.62%	35.52%	8,936,932	0.13%	59,479	-7.35%	0.65%
13-Nov	226,149	68,375	-3.43%	30.23%	8,941,660	0.05%	63,357	6.52%	0.70%
13-Dec	168,508	61,983	-9.35%	36.78%	8,942,584	0.01%	61,338	-3.19%	0.67%
14-Jan	230,401	61,479	-0.81%	26.68%	8,930,246	-0.14%	71,266	16.19%	0.78%
14-Feb	196,030	64,081	4.23%	32.69%	8,929,419	-0.01%	64,568	-9.40%	0.71%
14-Mar	211,244	71,205	11.12%	33.71%	8,932,828	0.04%	67,530	4.59%	0.74%
14-Apr	210,051	77,130	8.32%	36.72%	8,942,232	0.11%	66,821	-1.05%	0.73%
14-May	248,143	66,764	-13.44%	26.91%	8,947,220	0.06%	61,970	-7.26%	0.68%
14-Jun	204,304	71,744	7.46%	35.12%	8,954,010	0.08%	63,649	2.71%	0.70%
14-Jul	190,808	64,142	-10.60%	33.62%	8,951,519	-0.03%	66,502	4.48%	0.73%
14-Aug	255,285	68,810	7.28%	26.95%	8,952,842	0.01%	67,972	2.21%	0.75%
14-Sep	196,003	76,540	11.23%	39.05%	8,958,415	0.06%	69,939	2.89%	0.77%
14-Oct	243,114	64,139	-16.20%	26.38%	8,957,699	-0.01%	65,657	-6.12%	0.72%
14-Nov	171,326	61,055	-4.81%	35.64%	8,956,269	-0.02%	62,271	-5.16%	0.68%
14-Dec	164,750	63,884	4.63%	38.78%	8,954,518	-0.02%	65,501	5.19%	0.72%

Source: Office of Chief Actuary, Social Security Administration

Senator Opposes Social Security Cuts

     Sherrod Brown, the top Democrat on the Senate Finance Committee says that Democrats must not give an inch on Social Security. He opposes any cuts in Social Security disability.