As baby boomers reach their most disability-prone years, the SSA has seen its disability workload grow significantly in the last five years. In order to speed up and improve the quality of the disability determination process, the agency intends to ensure that individuals who are clearly disabled receive a decision within 20 calendar days of filing an application for benefits, reach an online filing rate of 25% for disability applications by 2012, regularly update the regulations to incorporate the most recent medical advances, and develop a common case processing system for all of the individual state disability determination services.

The SSA has already begun to speed up determinations for those clearly disabled with the Quick Disability Determination (QDD) initiative. Under this program, approximately three percent of all new applications are identified for the QDD process. It takes the SSA six to eight days to favorably decide over 965 of them. Using computer models, the agency expects to increase the percentage of the types of cases identified for QDD. A second initiative, Compassionate Allowances, also allows the SSA to quickly identify individuals who are clearly disabled by the nature of their disease or condition. With both initiatives, the agency expects to fast track six to nine percent of initial disability applications by 2012. Full article here:

Viewers in our area filing for Social Security Disability insurance benefits and waiting years for answers. Sadly, some die before they even get a final answer from the government. So what’s being done to help and how is the backlog here, one of the worst in the country, getting reduced?

Talk about waiting. The SSA says the hearing office in Greenville is one of the most backlogged in the country. The latest stats they gave us show the average processing time for a case is more than 2 years. There are only four other offices in the country that have processing times worse than this one: Dayton, Indianapolis, Altanta North and Atlanta.

We went to the SSA’s regional headquarters in Atlanta to get answers from spokesperson Patti Patterson.
When we asked Patterson why 65% of cases are denied at initial level she replied, “Congress has imposed a very strict definition of disability for us. The definition of disability for our purposes is that your condition must be so severe that you are unable to work for at least a year or result in death.”

Some of those wait times are so long in 2007 the head of the SSA testified before Congress people have died before they get their day in court.

“At the hearing level we win, nationally, we win over 65% which tells you those earlier denials were not right,” an attorney said.

If you have applied for disability benefits and have been denied make sure you appeal. Many people hire attorneys for help. They can’t charge a fee unless they win. Also contact your local Congressman to get your case the attention it needs. They have staff members who deal directly with social security disability claims. For a list of Congressmen in your area click here:
For full TV story click here

US News and World Report asks the question. Many retirees who have reduced spending power because of depleted 401(k) accounts are thankful that President Bush’s plan to partially privatize Social Security was never realized. But the debate over personal Social Security accounts rages on.

The success of private retirement accounts is dependent on the amount a worker contributes, the investment strategy, and the unpredictable whim of the market. Workers who contribute more and get better returns will have more retirement income than those who tuck away less and achieve smaller gains. Social Security benefits, on the other hand, depend on lifetime wages and the age at which benefits are claimed. Workers who retire at the same age with the same earning record generally receive similar benefit amounts regardless of the year in which they claim benefits and the ups and downs in the financial markets. Full story here:

THe Wall Street Journal reports that more than 55 million Americans will see a 5.8% boost in their Social Security benefits in 2009, the largest jump in 27-years and a development that could add more than $200 billion to federal spending over the next decade.
See full story here:

Social Security has that announced it will fast-track applications for Social Security disability for applicants with any of 25 rare diseases and 25 cancers whose medical conditions are very severe. Currently, many people with rare diseases experience devastating delays when they apply for Social Security assistance because those making the decisions are not familiar with their diseases.
See article here:

By ROBERT WOODMAN MCSHERRY, Andrews Publications Staff Writer

UnumProvident Corp., America’s leading private disability insurer, defrauded the Social Security Administration on disability claims, a Boston federal court jury has found following a bellwether trial.

Chris Collins, Unum’s senior vice president and general counsel, said in a statement that the claims underpinning the verdict “have no merit.”

“We think we will ultimately prevail upon appeal,” he said.

At stake may be the disability insurance industry’s practice of requiring claimants to apply for Social Security disability insurance and offsetting any consequent payments against the carriers’ own claims liabilities.

Whistle-blower Patrick J. Loughren, a Pittsburgh attorney who reportedly learned of the alleged fraud from Unum employees, filed the case against the Chattanooga, Tenn.-based insurer eight years ago in the U.S. District Court for the District of Massachusetts.

The suit says the insurer’s SSDI application requirement violates the False Claims Act. Unum’s management services subsidiary, Wayne, Pa.-based Genex Services Inc., is also a defendant.

The FCA allows private citizens to file suit on behalf of the government in fraud cases involving federal funds and to share in any consequent settlement or court award.

The government declined to intervene in Loughren’s suit four years ago but has since said in court filings that it reserves the right to enter the case in the future.

According to the suit, Unum forced policyholders to apply for SSDI and threatened to cut off their benefits if they refused.

The definition of a “disability” is more stringent for SSDI than for Unum disability insurance policies, and Loughren claimed that the applications were illegal because Unum knew or should have known that many of its policyholders did not qualify for the government benefits.

In a second amended complaint he alleged that the government spent up to $6.2 billion denying SSDI applications from 1999 to 2005, including many “false claims” submitted by Unum policyholders at the insurer’s “express direction.”

Since 2003 Loughren has successfully beaten back Unum’s motions to dismiss and for summary judgment, most recently on Sept. 15.

Three days earlier U.S. District Judge Patti B. Sarris had ordered a bellwether trial on six of 62 false-claims cases, with each side choosing three cases. In her order, the judge said she hoped the outcome of the trial would lead to “serious settlement discussions.”

“If settlement efforts fail, the court will have a much better understanding about Unum’s policy and will attempt to resolve the remaining claims by summary judgment and/or another jury trial,” she said.

Five of the cases went to trial, resulting in two jury verdicts for Loughren - one of which was on a case Unum had picked - and two for the insurer. The fifth case ended with a hung jury, and Judge Saris issued a directed verdict in favor of Unum on the sixth.

The 19-day trial included four days of jury deliberations.

Loughren’s attorney, Colette G. Matzzie of Phillips & Cohen in Washington, said trial testimony supported allegations that Unum’s business practices resulted in the filing of unlawful SSDI applications and that in some instances the insurer even knew its claimants had the ability to work as defined by Social Security regulations.

The U.S. attorney’s office for the District of Massachusetts did not respond to an e-mail asking whether it planned to intervene in the case now that a jury has found that Unum sent fraudulent claims to the government.

Matzzie said her side is ready to move forward with the suit regardless of the government’s position.

“We are prepared to do whatever is necessary to finish up this case,” she said.

Matzzie and Phillips & Cohen also represent the plaintiff whistle-blower in a companion case in the same court. United States v. Cigna Corp., No. 03-CV-12382.

In that case, former Cigna Corp. employee Dawn Barrett says the insurer and its wholly owned disability insurance subsidiary Life Insurance Company of North America sent thousands of false claims to the SSDI program from 1997 to 2004.

To comment, ask questions or contribute articles, contact West.Andrews.Editor@ThomsonReuters.com.

United States ex rel. Loughren v. UnumProvident Corp., No. 03-CV-11699, jury verdict returned (D. Mass., Boston Oct. 22, 2008).
10/29/2008

Copyright 2008
FindLaw, a Thomson Reuters business. All Rights Reserved

The National Organization for Rare Disorders (NORD) reports that the Social Security Administration (SSA) is seeking input from both physicians and patients on rare diseases. The SSA conducted hearings last December as part of an effort to better understand rare diseases so that patients will encounter fewer delays and frustrations when they apply for Social Security disability assistance. Because many rare diseases are not on the SSA’s approved list of diseases, the severity of their impact may be underestimated. As a result, applicants often are initially turned down but later approved. Many people go through unnecessary delay, frustration, and expense in seeking to have an initial decision revisited.

See full story here:

The House Ways and Means Subcommittee on Social Security will hold a hearing Tuesday morning to look at what is — and isn’t being done — to reduce the incredibly backlog of Social Security disability cases…Currently the nation’s Social Security disability insurance program is struggling under a severe case backlog. In some parts of the country, claimants can wait more than two years for a hearing. According to the Government Accountability Office, the backlog results primarily from increased applications, staffing shortages and management weaknesses.
The Association of Administrative Law Judges (AALJ) represents the 1,200 federal administrative law judges employed by the Social Security Administration.
See full story from Market Watch

The Department of the Treasury said Thursday that nearly 2 million Social Security recipients in 12 Western states will receive information this month about the option of receiving their Social Security and Supplemental Security Income (SSI) benefits via a prepaid debit card. The government has designed the program for people who do not have bank accounts and receive paper checks, which can be lost, stolen or delayed.

How does it work? The card - the Direct Express Debit MasterCard - is loaded each month by the Treasury, and recipients can make purchases, pay bills and get cash at thousands of ATM and retail locations nationwide. The card is issued by Comerica Bank.

Why use it? Approximately 4 million Social Security and SSI recipients nationally (approximately 600,000 in the Western states) do not have bank accounts and, until now, have had to rely on paper check payments, said Abbie Loftus, deputy regional director in the Treasury Department’s regional office in Emeryville. Nearly 859,000 paper checks are sent to California residents each month, Loftus said. In San Francisco, Oakland and San Jose, nearly 145,000 paper checks are issued each month.

Last year, 700,000 paper checks were reported lost or stolen and were reissued, Loftus said.
See full article from the San Francisco Chronicle here

Social Security recipients can now get monthly payments on a prepaid debit card. The Direct Express Debit MasterCard is being rolled out in 10 states by the Treasury Department and Dallas-based Comerica Bank. It’s an alternative to paper checks and direct deposit. But as with every financial product, there is some fine print. Here’s what you need to know about the Social Security prepaid debit card. See details here: