Social Security to Investigate California, Hawaii
for Blocking Disability Claims
‘Gov. Schwarzenegger has insisted on furloughing
California Disability Determination Service (DDS) employees, despite the
fact that we fully fund both their salaries and overhead’
Nov. 20, 2009 - Michael J. Astrue, Commissioner of
Social Security, today asked the agency’s Inspector General to
investigate 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 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 yesterday, 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.”
The text of Commissioner’s Astrue’s memo is
below:
At yesterday’s hearing before
the House Ways and Means Subcommittee on Social Security, I testified
about some disturbing practices the State of California has instituted
that aggravate, rather than help, in response to its budgetary
situation. 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.
Congressman Filner indicated
that since the furloughs began, the California DDS has begun denying the
claims of those disability applicants who fail to return a 25-page
report within 20 days. This practice, if true, places applicants in an
untenable position because the substantial amount of information
required must often be gathered from third parties. If an applicant
fails to return complete information within the time set by the State,
the DDS deems the applicant to have failed to cooperate and closes the
file, thereby depriving that applicant of fair and full consideration.
I am also greatly concerned
by Congressman Filner’s report that the California DDS may be
manipulating its service numbers by “staging” claims, assigning them to
fictional examiners or supervisors, rather than to actual examiners.
According to Congressman Filner, this practice would allow the DDS to
claim that the cases have been assigned, rather than indicate that they
are still in queue, thus minimizing the effects of the furlough.
If true, these practices are,
of course, very disturbing. Therefore, I am asking you to undertake a
full review of the practices of the California DDS to determine the
scope and breadth of any inappropriate practices.
I am also concerned about the
State of Hawaii, 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. Accordingly, I ask that you also review that agency to
ensure they are fully adhering to all SSA rules and policies.
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