From HALLEX, the manual of Social Security's Office of Disability Adjudication and Review (ODAR) whose name will be changed to OHO this fall:
I-2-5-10. Prehearing Case Review by Other Component Last Update: 8/3/17 (Transmittal I-2-211)
A.General After a claimant files a request for hearing but before an administrative law judge (ALJ) holds a hearing, an ALJ may, under the circumstances outlined in subsection B below, forward a claim for a prehearing case review to the Disability Determination Services or other component that issued the determination the claimant is appealing. On receipt of the claim(s), the receiving component will decide whether to revise the determination based on a preponderance of the evidence. See 20 CFR 404.941 and 416.1441. Under these procedures, the Social Security Administration may only issue a revised determination if it is fully or partially favorable to the claimant. NOTE: While a prehearing case review is pending, the ALJ retains jurisdiction of the claim and will not dismiss the request for hearing.
B.When an ALJ May Refer a Case for Prehearing Case Review As set forth in 20 CFR 404.941 and 416.1441, an ALJ may refer a case for a prehearing case review if: Additional evidence is submitted; There is an indication that additional evidence is available; There is a change in the law or regulation; or There is an error in the file or some other indication that the prior determination may be revised. In screening cases for the regulatory criteria, the ALJ will only refer cases for a prehearing case review in which application of the criteria may result in a fully or partially favorable decision.