SSA Investigates California, Hawaii DDS

The Social Security Administration's Inspector General has opened up an investigation into allegations that the states of California and Hawaii have recently implemented practices that deny applicants the right to receive full consideration of their Social Security disability claims.

In a memo to Patrick P. O’Carroll, Inspector General, Social Security Administration, Commissioner Michael Astrue writes, “As you know, Gov. Schwarzenegger has insisted on furloughing California Disability Determination Service (DDS) employees, despite the fact that we fully fund both their salaries and overhead. According to Congressman Robert Filner, the State is attempting to find ways to improperly circumvent the effects of the furlough at the expense of some of the State residents who are in the greatest need.”

At a hearing before the House Ways and Means Subcommittee on Social Security last week, Congressman Filner (D-CA) testified that the California DDS is denying the claims of disability applicants who fail to return a 25-page report within 20 days – a practice which has been adopted since the institution of furloughs. He reported that one office had closed 30 percent of its cases due to the applicants’ failure to return the completed form within 20 days. In addition, he testified the California DDS may be manipulating its service numbers by assigning claims to fictional examiners or supervisors. According to the Congressman, this scheme would allow the DDS to hide the fact these cases are not actually being reviewed.

“I am concerned about the State of Hawaii DDS, which is furloughing its DDS employees for as many days as California, and which has made statements about new business efficiencies that closely track statements made by California officials,” Commissioner Astrue writes to the Inspector General. “Accordingly, I ask that you also review that agency to ensure they are also fully adhering to all SSA rules and policies.”

For more information, visit www.socialsecurity.gov.

SSDI Question of the Day

Upon submitting an application for SSDI benefits, the Social Security Administration reviews your a disability claim and makes a determination to see if you meet basic requirements. They will determine if you’ve worked enough years and properly reported earnings, as well as evaluate your current work activities. When the minimum requirements are met, SSA delivers your application to the local Disability Determination Services (DDS) office.

What does DDS do with my application?

DDS completes the initial disability determination which is done by a variety of disability specialists and other medical professionals who review your application, obtain medical records from your treating doctors and consider the facts of your case. This medical evidence is used to determine the full extent of your limitations, the history of treatments you’ve received, and other critical factors related to your ability to work—such as sitting, walking, lifting weight, remembering instructions and more. DDS may request additional medical information to substantiate your disability claim, or require you to have a special examination (at their expense).

Upon completion of their review, DDS will notify you if your claim has been approved or denied. If approved, the notification will include the amount you are scheduled to receive, as well as other important information. If denied, you should request a hearing to appeal their decision.

Do you have a question about social security disability issues here in Colorado? Call me today.

Did You Know?

Under the Colorado Division of Workers' Compensation 2009 Maximum Benefits Schedule, the maximum benefit rate for Temporary Total Disability, Temporary Partial Disability, Permanent Total Disability and Death Benefits is 91% of your Average Weekly Wage or $ 807.24.

To qualify, a wage of $1,210.86 per week must be earned, and your benefits would be payable at least once every two weeks.

For a complete breakdown of the 2009 Maximum Benefits Schedule, click here (PDF Link).

SSA Hosts Disability Hearing on Compassionate Allowances & Schizophrenia

The fifth event in a series of hearings on the Compassionate Allowances was hosted this week by SSA Commissioner Michael J. Astrue, as well as Philip Wang, M.D., Dr. P.H., National Institute of Mental Health, National Institutes of Health, and other Social Security executives.

In October 2008, Social Security launched Compassionate Allowances to expedite the processing of disability claims for applicants with medical conditions so severe that their conditions by definition meet Social Security's standards. The hearings are part of a larger effort by the administration to network with the nation's leading experts on schizophrenia about possible methods of identifying and implementing Compassionate Allowances for young adults with schizophrenia.

"Schizophrenia is a devastating disease that affects more than two million Americans, primarily individuals in their teens and twenties," said Commissioner Astrue. "The onset of schizophrenia has life-changing consequences, which can include unemployment and homelessness...Our Compassionate Allowances and Quick Disability Determination processes are making a real difference by ensuring that Americans with devastating disabilities quickly receive the benefits they need. This fiscal year, we expect to fast-track about 150,000 cases and we plan to add more diseases and impairments to these expedited processes in the coming months."

To see a webcast of this week's hearing, visit www.socialsecurity.gov/compassionateallowances.

SSA Debuts Enhanced Online Retirement Estimator

The Social Security Administration's online Retirement Estimator, available at www.socialsecurity.gov/estimator, now can provide immediate and personalized benefit estimates to people who have enrolled in Medicare but have not yet filed for Social Security benefits. Previously, these “Medicare only” beneficiaries would need to contact a local office in order to obtain an estimate of their benefits. Currently, about a half-million people file for Medicare each year and delay filing for Social Security benefits.

“Social Security’s Retirement Estimator has been a huge success - with the agency providing over four million personalized retirement estimates to Americans since its launch last year,” said SSA Commissioner Michael J. Astrue said. “With more people delaying retirement beyond the Medicare eligibility age, it is critical that they also have access to this easy-to-use online tool.”

The Retirement Estimator is interactive and allows users to compare different retirement options. For example, a person can change retirement dates or expected future earnings to better determine the impact on their future benefits and decide the best time to retire. The Retirement Estimator presently is the highest-rated government online service in customer satisfaction and, according to the University of Michigan’s American Customer Satisfaction Index, it exceeds the ratings of private sector online innovators like Netflix and Amazon.

To learn more about the Retirement Estimator, click here.

Governor Restores Indigent Disability Program

Gov. Bill Ritter has issued a reversal of a previous order cancelling $7 million state Aid to the Needy Disabled (AND) program which provides emergency assistance to disabled indigent Coloradans as they apply for Supplemental Security Income through the federal government.

The move has been heralded by the Colorado Cross Disability Coalition and other indigent services resources around the state -- which all call the AND program a critical resource for thousands of area homeless disabled as they apply for federal assistance.

According to The Pueblo Chieftan, AND provides about $200 a month to more than 6,500 people in Colorado as they await word on their application for SSI assistance. The program offers critical living assistance for indigent disabled Coloradans.

For more information, click here.

Income at Risk: Unemployment Skyrockets for Those with Disabilities

Unemployment for people with disabilities has reached its highest rate since January, according to a quarterly study by Allsup. At the same time, the Allsup Disability Study: Income at Risk shows the number of people applying for Social Security Disability Insurance (SSDI) benefits continues to climb.

Specifically, the third-quarter Allsup study shows unemployment averaged 16.1 percent for people with disabilities, compared to 9.3 percent for people with no disabilities, according to non-seasonally adjusted data from the U.S. Department of Labor.

Over time, the study shows people with disabilities consistently experience higher rates of unemployment. Monthly unemployment rates for people with disabilities during the third quarter ranged from 15.1 percent (July) to 16.9 percent (August). These are the highest monthly unemployment rates reported since the Bureau of Labor Statistics (BLS) began reporting data on unemployment rates for people with disabilities last October. Monthly unemployment rates for people with no disabilities, in comparison, ranged from 9.2 percent to 9.5 percent during the third quarter. BLS also reported that during September, more than two-thirds of the unemployed (36 percent) had been jobless for 27 weeks or more.

The Allsup Disability Study: Income at Risk shows that the number of people with disabilities unable to work and applying for SSDI continues to climb. Disability applications rose to more than 733,000 in third quarter 2009. This is up just 1 percent from the second quarter. However, year-to-date there has been a 23-percent increase in initial disability applications compared to year-to-date 2008.

“Applying for SSDI is not a quick or easy experience,” said Paul Gada of Allsup. “It’s important for people to learn if they meet the criteria and apply as early as possible, with hopes of reducing their wait to begin receiving monthly SSDI benefits.”

CDA: Disability Rates Continue to Climb

The 2008 Long-Term Disability Claims Review conducted by the Council for Disability Awareness (CDA) reveals a surge in the number of American wage earners requesting and receiving long-term disability payments.

The CDA's FourthAnnual Long-Term Disability Claims Review analyzes private and public long-term disability claims data and identifies continuing and emerging disability trends among U.S. workers. Fifteen CDA member companies, representing more than 75 percent of the commercial disability insurance marketplace, submitted proprietary claim data for inclusion in this year's study. The Claims Review found that CDA member companies made nearly $8 billion in ongoing disability insurance payments to disabled individuals in 2008. CDA member companies approved long-term disability insurance benefits for 156,000 new individuals.

In addition to these private payouts, applications for the Social Security Disability Insurance (SSDI) program continued to surge in 2008. SSDI benefit applications increased 5.9 percent to 2.3 million in 2008 -- the highest ever. The program paid 7.4 million disabled workers a total of $91.3 billion in 2008 -- a 4.6 percent increase over payments made in 2007 and more than twice the $43.5 billion provided in payments to SSDI program beneficiaries 10 years ago.

For more information, visit www.disabilitycanhappen.org.

Insurance Journal: Colorado WC Rates Set to Drop

The Colorado Insurance Commission has revised loss costs for workers' compensation insurance providers -- a move that could reduce as much as $84 million worth of state-based workers' compensation premiums for Colorado employers, the Insurance Journal reported today.

The move is expected to bring significant savings to individual insurers, but will likely take at least a year for its impact to be felt. The loss cost reduction triggers on January 1, meaning that many providers will see no significant impact for WC filings until after that time.

According to the Insurance Journal, the loss cost reduction is based on a steady decrease in filed claims in 2008, a continuing trend that has been marked by an overall 50 percent reduction since 2000.

For more information, click here.

SSA Launches Flu Prevention Campaign

Michael J. Astrue, Commissioner of Social Security, has announced a new campaign by the administration to raise awareness about flu prevention practices. The campaign will feature Academy Award winner Patty Duke and David Kessler, M.D., former head of the U.S. Food and Drug Administration in a new public service announcement letting people know some simple steps they can take to prevent the spread of the flu, as well as the fact that most business with Social Security can be done online by visiting www.socialsecurity.gov.

“President Obama recently declared a flu emergency and we want to be sure that Americans looking to Social Security for critical services don’t underestimate the value of the simple but important steps they can take to help protect themselves and others from the flu,” Commissioner Astrue said. “They should also know if they need to do business with Social Security but don’t want to visit an office, they can always go online to www.socialsecurity.gov.”