Supreme Court Takes Major LTD Case

Folks who work at Social Security may not notice it, but there is a major interaction between Social Security disability benefits and Long Term Disability (LTD) benefits under employer pension plans. The Supreme Court has agreed to hear a major case about LTD. From the Associated Press:

The Supreme Court on Friday said it would rule on an appeal by MetLife Inc. in a case that could make employee benefit plans more expensive. [Obviously, the "more expensive" bit is from MetLife. The other side would say "more fair."]

The dispute centers on whether insurance companies such as MetLife have a conflict of interest when they both administer employee disability plans -- which requires deciding whether employees are eligible for benefits -- and pay benefits under them. If the court rules that handling both functions constitutes a conflict, that could encourage employers to hire separate companies for each function, potentially raising the plans' costs, lawyers for MetLife argue. ...

The case is MetLife v. Wanda Glenn, 06-923. Oral arguments in the case haven't yet been scheduled.

Economic Stimulus Package

I do not want to belabor the point, but last month an extra $200 million to help Social Security work off its hearing backlog was out of the question for President Bush. Today, President Bush is calling for a $140 billion economic stimulus package.

I think it is fair to be skeptical of any statement by any member of the Bush Administration, including Michael Astrue, the Commissioner of Social Security, professing concern about Social Security's backlogs. I would not go so far as to say that the Bush Administration desires that there be large backlogs at Social Security, but, at best, this Administration is indifferent to those backlogs.

Waiting In Fort Wayne

WANE in Fort Wayne, IN is running a local follow-up story to the CBS News report on the problems in Social Security Security's disability programs. See it online.

New OMB Filings

One of the most important levers of control that White House has over the Social Security Administration (SSA) is that the Commissioner of Social Security cannot simply order the adoption of a new regulation. By presidential fiat -- and it is an old fiat -- no agency may adopt a new regulation without the approval of the Office of Managament and Budget (OMB), which is part of the White House. The President cannot order the Commissioner of Social Security to adopt a new regulation, but the President can block a new regulation.

SSA must file any proposed regulation with OMB. At least OMB posts the news when SSA files a proposed new regulation with them. SSA recently filed these two items seeking OMB approval:

AGENCY: SSA	RIN: 0960-AF33
TITLE: Revised Medical Criteria for Evaluating Immune System Disorders (804F)
STAGE: Final Rule	ECONOMICALLY SIGNIFICANT: No
** RECEIVED DATE: 01/17/2008	LEGAL DEADLINE: None
AGENCY: SSA	RIN: 0960-AG67
TITLE: Revised Medical Criteria for Evaluating HIV Infection (3466A)
STAGE: Prerule	ECONOMICALLY SIGNIFICANT: No
** RECEIVED DATE: 01/17/2008	LEGAL DEADLINE: None

The Number Of New Employees To Be Hired At SSA Just Went Down

The Milwaukee Journal-Sentinel reports that it will cost about $1 million to correct the erroneous 1099 forms recently sent out by the Social Security Administration (SSA).

Turning The Spigot Off But Not Back On

From the South Florida Sun-Sentinel:

The Broward Sheriff's Office collects $400 every time the Social Security Administration learns about and suspends benefits for inmates within 30 days of their incarceration.

The Broward Public Defender's Office is raising pointed criticism of the Sheriff's Office because it does not take part in a system designed to help these inmates reinstate their benefits upon release.

"If they're turning the spigot off, they can help turn it back on, too," said Doug Brawley, a chief assistant public defender. ...

The county took in more than $211,000 through the program last year, according to budget reports. ...

The Sheriff's Office does not participate in the administration's pre-release agreement, said Patti Patterson, an administration spokeswoman.

Under such an agreement, jail staff would have a liaison at the local Social Security office who would help the staff navigate eligible inmates through the application process and match benefits reinstatement with release dates.

Monthly Statistical Packages Released

The Social Security Administration has released its monthly statistical reports on Title II and Title XVI of the Social Security Act.

Waiting In Youngstown

From WYTV in Youngstown, OH:

Administrators in the Youngstown office say as the baby boomer generation gets older, more claims fill the offices.

Kathy Burke of Hubbard says she has been diagnosed with arthritis all throughout her body and has not been able to work for nearly two years. But the Social Security backlog has prolonged a hearing on her disability case since last spring. In the meantime, her finances are taking a hit.

Burke is one of an estimated seven hundred and fifty thousand citizens waiting for judges to decide on disability appeals filed. The Social Security administration is trying to attack the nationwide backlog by opening a national center to hold disability hearings to help decrease the wait for those in need.