O'Malley Has Plans To Deal With SSA's Overpayment Problems

     From KFF Health News:

The Social Security Administration’s new chief is promising to overhaul the agency’s system of clawing back billions of dollars it claims was wrongly sent to beneficiaries, saying it “just doesn’t seem right or fair.”

 In an interview with KFF Health News, SSA Commissioner Martin O’Malley said that in the coming days he would propose changes to help people avoid crushing debts ...

He said he has concrete steps in mind, such as establishing a statute of limitations, shifting the burden of proof to the agency, and imposing a 10% cap on clawbacks for some beneficiaries. ...

O’Malley said the agency plans to cease efforts to claw back years-old overpayments and halt the practice of terminating benefits for disabled workers who don’t respond to overpayment notices because they did not receive them or couldn’t make sense of them. ...

“One would assume that in a country where people are innocent until proven guilty,” he said, “that the burden should fall more on the agency than on the unwitting beneficiary.”

SSAB Study On Effectuation Of Disability Benefits

     The Social Security Advisory Board (SSAB) has done a study on Effectuation of Disability Benefits. It shows that there have been major increases in the time it takes to effectuate disability benefits, particularly SSI benefits. These delays are cruel. The claimant has already been found disabled. He or she is poor enough to qualify for SSI yet must wait many months to receive their benefits. That's wrong.

    Below are a couple of charts from the report showing what has happened. Note that the SSAB couldn't obtain good data from Social Security. They had to rely upon data from a large non-attorney representative group. That tells you that this hasn't been enough of a priority at Social Security to even collect good data on it. In addition to giving us an idea of the scope of the problem, the data also gives us an idea of the size of that non-attorney representative group.

Two Important Sets Of Final Regs

     The Social Security Administration has asked the Office of Management and Budget (OMB) to approve two sets of proposed regulations.

     Here's a description of the first for which approval has been requested:

We propose to update our regulations to reflect that we may authorize direct payment of representative fees to an entity itself, not only to representatives working for an entity, as required by the decision of the Court of Appeals for the First Circuit in Marasco & Nesselbush v. SSA. In accordance with the Marasco ruling, we propose a process for paying an entity directly, which involves requiring registration for all entities who wish to receive direct payment of assigned fees. We also propose several measures to standardize registration, appointment, and payment processes for all representatives who wish to be appointed on a claim, matter, or issue with us. These proposed changes will enable us to pay fees directly to entities in a timely and efficient manner. In addition to helping us implement the Marasco decision, these provisions will increase appointed representatives’ access to our electronic services, reduce delays, and thus improve program efficiencies for all representatives.

    Here's a description of the second set of proposed regulations for which approval has been requested:

We propose to develop intermediate improvements to reduce the burden in our current disability adjudication process as a step towards longer-term reforms to ensure our disability program remains current and supports equitable outcomes. Actions could include decreasing the years of past work we consider when making a disability determination, as well as other potential regulatory changes.

The development of this regulation was informed by a listening session conducted by our Office of Communications with advocacy groups representing claimants and beneficiaries.

Biden Proposes 9% Increase In Social Security Operating Funds

     From President Biden's budget proposal for Fiscal Year 2025, which begins on October 1, 2024:

... The Budget provides an increase of $1.3 billion, nine percent over the 2023 enacted level, to improve customer service at SSA’s field offices, State disability determination services, and teleservice centers for retirees, individuals with disabilities, and their families. The Budget also improves access to SSA’s services by reducing wait times. ...

    Nothing like this can be passed until after the election and only then if Democrats control the White House, Senate and House of Representatives -- and Senate Democrats are willing to scrap the filibuster, at least in part.

    In the lengthy supplement to the budget, the detailed explanation shows that program integrity would not increase. One complaint about recent appropriations is that there has been lavish funding of program integrity while basic operations have suffered greatly.

    The Commissioner of Social Security gets to include his own proposed budget for the agency in the supplement to the budget. Commissioner O'Malley's proposal is for the agency to be funded at $16.45 billion, about three quarters of a billion dollars higher than the President's budget but O'Malley has issued a statement praising the President's budget.

    The proposals of the President and the Commissioner are nice but restoring acceptable service at the Social Security Administration will have to be a multi-year effort.

    By the way, the Biden budget also calls for extending SSI to U.S. territories, such as Puerto Rico.

New Telework Wrinkle

     From Federal News Network:

... Under a new memorandum of understanding (MOU) between SSA and the American Federation of Government Employees, signed March 1, employees can now request “episodic telework” — or extra work-from-home days — when unexpected personal circumstances arise.

The new flexibility, which took effect March 4, gives SSA employees the option to occasionally request taking an extra day of telework in extenuating circumstances. That’s instead of having to take time off or dip into annual leave. ...

Agency spending levels are the next challenge SSA will face. To try to improve services and morale at SSA, AFGE is proposing a supplemental funding package of $20 billion over the next 10 years.

The highly anticipated budget proposal from House and Senate appropriators, which has a deadline of March 22, is unlikely to yield the results AFGE is hoping for.

“We’re severely underfunded in our operating costs, and current budget talks aren’t signaling that we’re going to get much money this year,” LaPointe said. “So, we’re really getting creative.” ...

NY Times On Social Security Scams

     The New York Times is running a piece on the ongoing scandal of criminals, by hook or crook, obtaining enough information about a person receiving or eligible to receive Social Security benefits and then convincing the Social Security Administration to divert those benefits to the criminals. It happens thousands of times a year and involves tens of millions of dollars. It goes on and on with no apparent fix in sight.

Increase In Social Security Fraud

     From Newsweek:

The Social Security Administration (SSA) has issued a warning for Americans regarding scams that are stealing benefits from thousands of recipients each year. ...

According to the SSA's Office of the Inspector General, there was a 61.7 percent increase of reported scams between Q3 of the financial year in 2022 and the same period in 2023. In the former, just over 13,000 scams were reported, rising to 21,080 in the latter. ...

[T]hose under 50 were most likely to fall for scams ...

Thanks, Commissioner O'Malley

     From a recent "Dear Colleague" letter from Social Security to attorneys who represent claimants before the agency:

... We offer flexible repayment plans, including payments as low as $10 per month. If they are unable to meet their necessary living expenses due to the current repayment amount, or are unable to repay the debt within 60 months*, they can request a change in the recovery rate by completing form SSA-634, Request for Change in Overpayment Recovery Rate. *This is a recent policy change. Previous policy required the completion of the SSA-634 if the overpayment could not be repaid within 36 months. ...

    You know, that policy change means that it's harder to get a current repayment rate reduced. More overpayments can be satisfied in 60 months than in 36 months. Squeeze those debtors as hard as you can.