Surgeon Convicted Of Social Security Fraud

     From the Shreveport Times:

A Shreveport surgeon was found guilty by a federal jury on Friday of stealing more than $200,000 in Social Security disability payments. 

Dr. John Owings, chief of trauma at LSU Health Shreveport, was found guilty of 20 counts of theft of government property and one count of concealing or failing to disclose an event affecting right to a government benefits. 

The United States presented evidence during trial showing that Owings applied for disability benefits in 2008 and continued to receive those benefits through June of 2017, after returning to work in 2012,” a release from the Department of Justice states. “When Owings went back to work as a surgeon at the University of California-Davis in 2012, making $22,000 a month, he failed to tell the Social Security Administration (SSA) about his return to work.” ...

 Shreveport surgeon was found guilty by a federal jury on Friday of stealing more than $200,000 in Social Security disability payments.

Are Undocumented Immigrants Such A Bad Thing?

     Those nasty undocumented immigrants that Donald Trump wants to keep out of this country with a fence are actually contributing about $13 billion a year to the Social Security trust funds. Why exactly is it crucial that we hunt down and deport all of these immigrants when the U.S. birth rate is so low?

Democrats Coalescing Around Social Security 2100 Act

Congressman Larson

     John Larson, the Chairman of the House Social Security Subcommittee, and Democratic Senators Blumenthal and Van Hollen have introduced the Social Security 2100 Act which would increase Social Security benefits and reduce taxes paid on Social Security benefits. The bill would also increase the FICA tax in two ways. Income over $400,000 would be covered by the FICA tax and the FICA rate itself would climb by 0.1% a year between 2020 and 2043. The bill has 200 cosponsors in the House of Representatives, all Democrats. 

      The Office of Chief Actuary at Social Security has now scored the Social Security 2100 Act. It would leave the Social Security trust funds in balance for the next 75 years at least.

     There is little hope that such a bill would pass with Republicans in control of the Senate. However, Democrats running for Congress and the White House in 2020 may choose to run on this bill and then try to pass it in 2021.

Proposed Regulations On Inability To Communicate In English And A Foreshadowing Of Something Bigger

     Social Security has posted proposed regulations on removing inability to communicate in English as an education category in determining disability. This is only a proposal. The public can comment on it. Social Security is supposed to consider the comments. Congressional opposition can sometimes head off proposed regulations. Sometimes, the agency change its mind or there's a change of administrations before proposed regulations can be finalized.

     Note the following language from the explanation of the proposal which may foreshadow more consequential changes:

The increase in labor force participation by individuals who lack English proficiency may be in part due to the increase in low-skilled work in the national economy. In 2014, our Office of Research, Evaluation, and Statistics (ORES) prepared an Evidence Synthesis consolidating information from research we commissioned and other available research for the purposes of modernizing our vocational regulations. ORES' literature review on the vocational factor of education indicates that with the introduction of new technology replacing moderately skilled workers, there are fewer moderately skilled jobs and higher numbers of low and high skilled jobs.

     I've given Social Security's link to the "Evidence Synthesis" but I'm not seeing it there.
     This could foreshadow changes to Social Security's "grid" regulations used in determining disability that would greatly disadvantage individuals who lack job skills. It could even be a sign that they want to abolish the grid regulations. We should not underestimate the maximalist impulses of the Trump Administration or its willingness to act in the absence of any evidence supporting its actions.
     In my experience, I've not seen higher numbers of low skilled jobs. My impression is that the exact opposite is the case. The assembly jobs that used to be widely available to people who can only handle simple work have largely disappeared from the U.S. economy. I've seen nothing else picking up the slack.

Proposal To Have AAJs Holding Hearings

     Social Security has asked the Office of Management and Budget (OMB) to approve proposed regulations that would allow Administrative Appeals Judges (AAJs) to hold hearings. The AAJs currently handle cases at the Appeals Council. When you combine this with the recent proposal that video hearings could be forced upon claimants you get an idea of what Social Security has in mind -- the end of Administrative Law Judge hearings. There would be some huge building housing AAJs working away in cubicles holding only video hearings. The AAJs would be subject to intensive review to make sure they tow the party line. Even though Social Security's centralized operations are the most troublesome parts of the agency in my opinion, Social Security management loves centralization. Few people in upper Social Security management have worked in the field. They just distrust field operations. They like putting their eggs in big baskets. 

    Really, does anyone think that the centralized payment centers, the teleservice centers and the Appeals Council are the most efficient parts of Social Security?

Andrew Saul And The MTA

     Andrew Saul's nomination to become Commissioner of Social Security is pending before the Senate but Saul isn't sitting idle. He's very much involved in a big New York City transit controversy.

Ennis Sworn In As Inspector General

     From a press release:

Gail S. Ennis, of Maryland, was sworn in as the Inspector General for the Social Security Administration (SSA) by Acting Commissioner of Social Security Nancy A. Berryhill at a ceremony today. President Donald Trump nominated Ms. Ennis for the position, and the Senate confirmed her nomination on January 2, 2019. ...

Ms. Ennis began her legal career in 1998 as an associate at WilmerHale in the firm’s Securities Department. In 2007, Ms. Ennis became a Partner in the firm’s Securities Litigation and Enforcement practice and later also joined the firm’s Bank Regulation and Enforcement practice. Ms. Ennis’ practice focused on advising companies, boards of directors, audit committees, and special committees of large, multi-national corporations or financial institutions in connection with government and independent investigations related to the federal securities laws, as well as consumer protection laws. She led large teams of lawyers, forensic accountants, IT and discovery professionals, and support staff investigating issues including financial statement reporting and disclosure errors, accounting irregularities, and misconduct by current or former officers or employees. Ms. Ennis also advised clients on improving processes, procedures, and internal controls to avoid future violations or to comply with settlement terms or changes in laws or regulations. Ms. Ennis appeared before the SEC and the Consumer Financial Protection Bureau.

 

Ms. Ennis holds a Bachelor of Science from the University of North Carolina at Chapel Hill and a Juris Doctor from Brooklyn Law School. ...

Why Does This Keep Happening?

     A television station in Nyack, NY reports on a woman who had to go through a long fight to get approved for Social Security disability benefits but didn't receive her back benefits until seven months later and then only after the television station started asking questions. Of course, all this delay caused the poor, sick woman great financial problems.

     I don't know enough about the case to say what happened but I can say the most common cause for this sort of delay is what I call a phantom windfall offset. At the very beginning, when the claimant first contacts Social Security, the field office takes both a claim for Disability Insurance Benefits (DIB) and Supplemental Security Income (SSI). The SSI claim is quickly denied because of excess income or resources. There was no point in the claimant ever filing the claim except that the field office is assigned staff based in part on how many claims they take so they have an incentive to take useless SSI claims. (Yes, I've heard field office staff say, no, they're just trying to protect claimants but I'm not buying it.) Even though it's been denied, the SSI claim remains active in Social Security's computer system. Once the DIB claim is approved, the back DIB benefits aren't paid because the payment center is waiting to find out how much SSI was paid. However, there's no action on the SSI since it was long since denied. The payment center just does nothing. The field office which would implement the SSI if it were being paid and which is supposed to tell the payment center if no SSI is being paid does nothing. Maybe somebody at Social Security realizes there's a problem and resolves it. Maybe nothing happens until the claimant complains. Maybe nothing happens even if the claimant does complain because everybody is so busy. How often do phantom windfall offsets happen? I'd guess a few hundred thousand times a year. Social Security certainly knows about the problem. Why can't they get it fixed? Everybody is just so busy. Problems that cause delays in benefit payments aren't nearly so important as the pointless search for another Eric Conn. (Hint to Social Security: There isn't another Eric Conn out there.)