Indianapolis Personal Injury Blog

Social Security News from the NOSSCR Conference

Indianapolis social security disability lawyer questions claims of "quality" and "progress" by the Social Security Administration.

Social Security disability applications increase in troubled economy

Social Security disability clients often wonder why the process takes so long. A look at these numbers helps to answer that question.

Social Security Ordered To Pay More Than $500 Million

Nearly $500 million in social security benefits will be paid to 80,000-plus recipients who were unfairly denied because of a glitch in a federal computer program that was designed to catch criminals.

Federal Judge Claudia Wilken approved a tentative settlement requiring that the Administration pay recipients who were wrongly "flagged" as criminals, and who have been denied benefits since Jan 1, 2007. (A 1996 law prohibited criminals with warrants from receiving federal benefits. Once this law went into effect, the federal database was designed to "flag" criminals who were collecting benefits.) More than 120,000 people who applied are eligible to reapply for benefits.

The tentative agreement was reached after the Social Security Administration was challenged by a class-action lawsuit, Martinez v. Astrue. The lawsuit stated that Rosa Martinez, 52, of Redwood City, California, was denied $870 of her monthly disability benefits because the system believed that she had an outstanding drug warrant. After the allegation was investigated, it was determined that there was indeed a warrant for a Rosa Martinez, but not the Rosa Martinez of California.  The Rosa Martinez with the drug warrant resided in Miami, Florida.  Ms. Martinez or California knew that she was innocent, and tried to prove such innocence, but failed.

Over the past several years, numerous district court judges across the country have ruled in favor of the victims in their individual cases. The determined that stopping coverage based on the database searches was unlawful. In 2005, a federal appeals court in New York ruled the database search illegal. The Social Security Administration stopped this practice in New York, Connecticut and Vermont. As of April 1st, the warrant checking process will no longer be allowed.

A spokesman for the Social Security Administration declined a comment until the settlement is finalized later this year. The Social Security Administration pays benefits to more than 356,000 local households.

7 Social Security Disability Application Mistakes

1. Not having a "disability"         

"Disability" is strictly defined by the Social Security Adminsitration, and many people are surprised when they learn that their condition doesn't meet the administration's criteria. So what constitutes a disability?

To qualify for social security disability benefits, you must be unable to perform any substantial work and have a medical condition that has lasted (or is expected to last) at least a year, or results in death.

(A lot of people believe they can collect disability benefits if they are not able to do their regular job as opposed to any job. This is untrue. Social Security doesn't only take into consideration the type of work you have previously been doing, but anything that they believe will suit you and your present condition.)  

2. Waiting too long 

If you wait too long to start the process, you are doing yourself a complete disservice. Even if you are approved, there is approximately a five-month waiting period before your disability checks will start to arrive.  Any delay also means that you are putting off much needed Medicare coverage, which won't start until 24 months after being approved for disability.

Waiting too long, or worse, giving up can result in smaller benefits as a retiree because Social Security factors in your total number of working years.

3. Not having finances in order

The disability process is a mental and financial marathon. It's critical that you use financial-planning basics to tread water until you are receiving disability awards and Medicare coverage for your medical needs.     

(Social Security has recently started to fast-track people who have medical conditions that qualify for a compassionate allowance. The allowance is reserved for people with one or more of 50 different disabling conditions, including 25 types of cancer.) 

4. Poor preparation 

Organization of your application is critical. To make Social Security take notice of your application do the following: gather your medical records; make a list of the doctors you've seen; have documents from your physician's that support your claims; and a list of the medications you're taking or have taken. 

In other words, submit a comprehensive package that is exceptional.

5. Giving up

You must be persistent.  Don't be discouraged if you get rejected--almost everyone is rejected the first time. It's very possible that you have to appeal your case and possibly go before a judge before receiving disability benefits.

There is some good news: Close to two-thirds of cases that go through one or two appeals will eventually receive benefits.

And...

There is some bad news: Currently, a backlog of 750,000 cases are awaiting decisions at the hearing level.  Becuase there is a shortage of judges to hear these cases, it can take up to two years to make headway.

The key is not to give up. Many people will wonder how long it takes to receive disability benefits. However, if you receive a denial, and have 60 days to appeal, appeal on the day you receive your denial. Waiting only puts you behind another million folks waiting for a hearing.

6. Not reaching out for help
 
If you're frustrated and having trouble with the process, contact an experienced social security disability lawyer or a nonprofit advocacy group.

It's no secret, the Social Security Adminsitration speaks a secret language, and good social security attorney will understand their lingo.

7. Not changing inaccurate information
 
Compare your annual Social Security earnings statements against W-2 tax forms for accuracy. And it's not just the math you need to worry about; check personal data, too, especially after a divorce or name change. If you find that an error exists, call the Social Security Administration at 800-772-1213.

How Long Do I have To Wait For A Decision About Social Security Disability Benefits?

What exactly is the Social Security Administration's biggest problem? Depends which side you ask.

If you ask someone who works for the troubled agency, they will tell you the toughest part of their job is trying to separate disabled workers from non-disabled workers.  Ask someone who has filed disability paperwork and they will tell you it's the amount of time it takes to get social security disability benefits. 

Both sides have valid arguments; however, one thing is certain, the social security disability administration faces a herculean task when you consider a little over 2 million workers filed for disability in 2006, and the number continues to rise each year. 

Social Security officials insist that the number of applications aren't the problem, it's the task of weeding out who is physically and/or mentally disabled and who isn't. Of the 2 million-plus people who filed for disability in 2006, approximately 550,000 were determined to be unfit to work. The same number of applicants were initially denied because it was determined that they were not medically disabled. And a large number of other applicants were denied social security disability for nonmedical reasons. The remaining 300,000-plus? They didn't receive an immediate ruling on their application.

While it sounds like tough odds, there is hope: A little more than half of applicants applying for social secuirty disability ultimately received their benefits.

The majority of applicants with legitimate disabilities are often forced to file an appeal. After the applicant has filed the appeal, the odds of receiving benefits increase dramatically. In fact, the numbers say that a little more than half of applicants ultimately receive benefits. But keep in mind, most of the applicants who eventually receive their disability benefits may wait years before receiving a favorable ruling.

Is there anything that can increase your odds? Absolutely. Hiring a qualified social security disability attorney.

How Disabled Do I Have To Be To Qualify For Social Security Benefits?

We all have health problems, and some of these health problems may interfere with how well we can do our jobs. But only some people with disabilities qualify for Social Security Disability benefits. What are some of the basic requirements for collecting social security benefits?

· First and foremost, if you are an adult, you must be unable to continue doing the job that you had before you became disabled or sick. You must also not be able to do any job that the Social Security Administration (SSA) thinks you could be capable of considering your career background.

· Your disability or condition is expected to last for at least one year or your disability or condition should be terminal. SSDI is not for partial disability or short-term disability. A disability can be physical, psychological, or psychiatric in nature.

· Your medical records must reflect your disability and the severity of your disability.

Social Security Benefits Will Not Increase In 2010

Federal forecasts from the Obama administration and the Congressional Budget Office predict that Social   Security recipients will not be receiving an increase in their benefits in 2010, and possibly 2011.  Beneficiaries have received automatic cost-of-living adjustments (COLA) every year since 1975.

"What does a a freeze in Social Security benefits mean for Medicare?"

It would result in major implications for Medicare because the COLA puts a cap on premiums for Part B of Medicare, which covers a physicians’ services.  And if there is no COLA for Social Security, about 75% of beneficiaries will not see any change in their basic Part B premiums, according to federal officials.  However, some beneficiaries are without this protection and could face substantial increases in their Part B premiums.

Inflation is good for people on fixed incomes, but it is creating political and policy problems for Congress, which is just learning of the implications for Social Security and Medicare.

In addition, millions of beneficiaries could see higher premiums for drug coverage, provided under Part D of Medicare.

Medicare’s hospital insurance trust fund is deteriorating because of the recession, according to officials.  Medciare has reduced payroll tax revenues in response to the concern.  The tax revenues represent the main source of money for the fund. Spending on Social Security and Medicare totaled more than $1 trillion last year, accounting for more than one-third of the federal budget.

Most recipients of Medicare have Part B premiums deducted from their monthly Social Security checks. These premiums have historically increased much faster than Social Security benefits.

Under federal law, most Medicare beneficiaries have some protection. Their basic Part B premiums cannot rise more   than the dollar amount of the cost-of-living increase in their Social Security checks. So if there is no COLA, their basic Part B premiums will not increase. However, one-fourth of Medicare recipients are not protected by law, and these folks could see their premiums increase.

 

 

 

 

Social Security Aims to Reduce Backlog Despite Increase of Claims

The Social Security agency's (SSA) commissioner believes that SSA will be able to eliminate all the claims' backlog in 2013.  This announcement to Congress comes even after it was revealed that SSA is faced with an increase in disability claims over the previous year.

2008 left SSA with a backlog of 1.4 million disability and supplemetnal security benefits claims, thus causing a state of limbo for those who have filed. By the end of 2009, it is predicted that the number of these claims will exceed 1.6 million.

When pressed to explain the backlog, SSA officials noted limited funding and a sharp increase in the number of disability claims that their office is faced with year after year. Disability claims are expected to grow by 300,000 this year over last year’s numbers. Most of Keller & Keller's social security disability clients are often concerned with the amount of time it takes to get a hearing.  SSA estimates that the the average wait time for a hearing on a disability claim is 500 days. 

Our Social Security disability practice agrees that the wait time is excessive, however, obtaining legal representation will remarkedly increase the likelihood that you will receive a favorable decision for your claim.

Illinois Man Cheats Social Security Disability System, Gets Three Years In Jail

WQAD.com reports that a man from Lenzburg, Illinois was sentenced to over three years in jail and fines on $143,000 for Social Security Disability fraud.

The man, 55-year-old John Laird, applied for Social Security Disability benefits in 1989 and was approved. At the time, Laird had partial paralysis in his arms and had mobility problems, making it impossible to work. However, two years later, he began working as a mechanic. Although he was now supporting himself, he did not alert the Social Security Administration of his health improvements and continued to collect his checks. Now he must pay back the money in full.

Laird also failed to tell the SSA about a 2001 drug charge that would have also affected his benefits.

In August, Laird pleaded guilty to concealment of information from the SSA in an East St. Louis Court. Last week, the judge handed down his sentence.

American Recovery and Reinvestment Act: $250 Stimulus Payments FAQ

Keller & Keller LLP has received many calls regarding the American Recovery and Reinvestment Act.  The following is a collection of the most common questions, followed by our answers. 

Am I eligible for the $250 stimulus payment?
You are eligible for the $250 stimulus payment if you were entitled to Supplemental Security Income (SSI), or to any of the following Social Security benefits at any time between November 2008 to January 2009:

--retirement,
--wife's and husband's,
--disabled adult child (but not other child's benefits),
--widow's and widower's,
--mother's or fathers',
--parent's,
--disability insurance benefits,
--special age 72 benefits

(VA and Railroad Retirement benefits also have grounds for eligibility.)

Does the payment come out of the Social Security trust funds?
No. The Act states that stimulus payments will come from appropriated funds.

Will the stimulus payments be made to people not living in the United States?
No. The American Recovery and Reinvestment Act is limited to persons who have listed residence is in the U.S. or a U.S. territory.

I'm entitled to SSD and SSI.  Will I get two checks?
No; however, there may be instances in which mistakes will be made and someone may receive more than one check.

Will I be taxed on this income?
No, not by the federal government.

Can my payment be seized for payment of my debts?
Typically not; however, just as Social Security benefits can be seized, your stimulus payment could also be seized for any federal tax debt or child support obligations.

Can a single Social Security number receive more than one $250 stimulus check?
Yes.

Can a single household receive more than one $250 stimulus check?
Yes.

When will I receive my stimulus check?
No later than 120 days after the signing of the Act.

I don't currently have social security benefits. If I apply for benefits for the time period between November 2008 to January 2009 and am approved, will I get a stimulus check?
Yes, but there is a time limit. No payment can be made after December 31, 2010.

If someone is already on SSI, will the $250 stimulus check be viewed as income and possibly reduce my SSI benefits?
No.

Indiana State Employees Filing For Disability Exposed On Internet

Theindychannel.com reports that the personal information of 8,775 Indiana state employees was accidentally posted on the internet on the morning of January 20, all of whom had filed disability claims or workers' compensation claims within the last three years, dating back to 2005.

Although the sensitive file - which included the social security numbers of the employees as well as other sensitive information - was only posted for about two hours, four different parties access the information during that time. The files appeared on the Indiana Department of Administration's website after an accidental upload took place.

The IDOA has sent letters to those affected by the security breach and are procuring affidavits from the four different individuals and companies who accessed the information to assure that the data has been destroyed.

"We are doing everything we can to minimize any risk associated with this incident. We don't take this lightly," said IDOA Commissioner Mark Everson. "We are reviewing and strengthening our procedures to ensure that this does not happen again."

Using Social Security Data incorrectly

Indiana is counted among the states that are using Social Security Data incorrectly.

We think this is a shame and an abuse of our clients social security information.  The New York Times reports that  Indiana, Nevada, North Carolina and Ohio are improperly using Social Security data to verify registration applications for new voters.

In addition to these six swing states, three more states appear to be violating federal law. Alabama and Georgia seem to be improperly using Social Security information to screen registration applications from new voters. And Louisiana appears to have removed thousands of voters after the federal deadline for taking such action.

Under federal law, election officials are supposed to use the Social Security database to check a registration application only as a last resort, if no record of the applicant is found on state databases, like those for driver’s licenses or identification cards.

This precondition exists because using the federal database is not as reliable than each state’s lists, and is more likely to incorrectly flag applications as invalid. Unfortunately, many state officials seem to be using the Social Security lists first.

Social Security benefits are on the rise

According to a recent press release, this January, 50 million Americans will see an increase in the amount of their Social Security benefits.  The Social Security Adminsitration recently announced that benefits will be raised by 5.8%, which will mean an additional $63 a month for the average retiree.

This represents the largest rise in benefits since 1982, when Americans saw a 7.4% increase.  It also represents an increase that is more than double of last January's 2.3% hike.   

Social Security benefit changes are determined by the Consumer Price Index increases from July through September from one year to the next. 

The larger checks for retirees may offer little help, as large increases in food costs and energy bills have been cause for concern.  As well, some retirees have seen their retirement savings be negatively affected by the recent turbulence within Wall Street.