The Government Accountability Office (GAO) released a disturbing report in late June that contends the Social Security Administration (SSA) may have made fraudulent or improper disability payments to thousands of individuals, including more than a thousand federal employees.

As reported Aug.4 in The Washington Post, the SSA disputes the audit:

“Almost 1,500 federal workers might have received improper or fraudulent Social Security payments in the past several years, according to a government audit disputed by the Social Security Administration.

Payroll records vs. benefits data link nearly 70,000 others

“Government Accountability Office investigators matched civilian federal payroll records with benefit data from the Social Security Disability Insurance program and the Supplemental Security Income program to yield their estimates.”

Beyond the 1,500 federal employees, the GAO audit (see the summary here) finds questions about “62,000 individuals [who] received or had renewed commercial driver’s licenses after SSA determined that the individuals met the federal requirements for full disability benefits” and another “7,900 individuals with registered transportation businesses who were receiving SSA disability benefits.”

A tiny fraction?

WP columnist Joe Davidson, writing a day later, at first tries to downplay the significance of the numbers, saying that 1,500 of the millions of federal employees represents a tiny fraction. That’s not “many out of a current federal workforce of 2 million” Davidson writes. “And even that comparison overstates the problem.

“Sen. Carl Levin (D-Mich.), chairman of the investigations panel under the Homeland Security and Governmental Affairs Committee, put the numbers in a more precise context.

” ‘GAO matched a database of Social Security disability recipients against federal payroll databases covering about 4.5 million persons who worked for government agencies for varying periods of time from October 2006 to December 2008,’ he said as he opened the hearing.

“Fifteen hundred out of 4.5 million ‘represents a very small percentage,’ he accurately noted, ‘only three-hundredths of 1 percent.’ ”

“If only all rates of fraud or improper activities were so low.”

Larger questions for endangered SSDI program

We catch his drift, but can’t co-sign for such a forgiving attitude. In the first place, it overlooks the nearly 70,000 other folks who may have received improper payments. More important, such forbearance downplays the threat to a disability program that is running out of funding.

Davidson does recover a sense of accountability, though, when he says, “Yet any improper activity is too much, particularly by federal workers who are trusted to safeguard tax dollars, not abuse them. And every penny of the $1.7 million that the GAO found in improper monthly payments to federal workers is too much.”

Let’s see– $1.7 million x 26 months … on my calculator, that comes to $44.2 million in possible overpayments. And, remember, that’s only for the 1,500 federal folks, for the period Oct. ‘06 to Dec. ‘08.

It gets worse. According to the WP article, nearly $11 billion is stake for a longer period:

“The SSA made $10.7 billion in overpayments to disability beneficiaries from 2004 to 2008, according to Senate aides. [Senator Tom Coburn (R-Okla.)] is especially concerned and familiar with fraudulent payments from his time as a practicing medical doctor and as part of his service on President Obama’s bipartisan debt commission, aides said. The Oklahoma Republican also is a fierce critic of the salaries and benefits earned by federal workers and other spending for government operations.”

Coburn and Senators Thomas R. Carper (D-Del.) and John McCain (R-Ariz.) requested the GAO audit, which was featured at the Aug. 4 subcommittee hearing,  “Social Security Disability Fraud: Case Studies in Federal Employees and Commercial Drivers Licenses.”

Another $3 billion

Other incidents of overpayment have been found, too. For example, this is not the GAO’s first probe of the SSDI or SSI systems. According to the printed version of Coburn’s opening statement for the hearing, a previous GAO investigation found “nearly $3 billion in overpayments from 1999 to 2003 in the DI program alone.”

Regardless the fractional amount overall, this is simply too much money to be wasted, period–and especially for a program in such dire straits, as we wrote here: “The Social Security Disability Insurance (SSDI) fund, however, is in trouble. And fixing it requires way more than Band-Aid legislation in the next few years. In short, the fund is financed mostly by a 1.8 per cent payroll tax and at current rates will be in serious trouble in only five years. And by 2018, a short three years later, it will be broke, according to a recent study by the Congressional Budget Office (CBO), which makes a brief available here.”

Here’s an excerpt from Coburn’s statement:

“We cannot afford to allow healthy people to waste our money. Nor can the Disability Insurance Trust Fund afford it. The Congressional Budget Office recently concluded that the Trust Fund will be exhausted by 2018.

“GAO’s investigation into fraud in the Social Security disability programs is not its first. In 1997, they designated the SSI program as “high risk” due to years of mismanagement and overpayments. GAO also previously identified nearly $3 billion in overpayments from 1999 to 2003 in the DI program alone. In today’s report, GAO found $10.7 billion more in overpayments from fiscal years 2004 to 2008.

“In response to these numbers, SSA’s disappointing reply was that ‘overpayments are unavoidable.’ This is unacceptable. It is also in direct contradiction with the President’s mandate that overpayments in government programs be eliminated.”

SSA Commissioner objects

SSA Commissioner Michael J. Astrue vigorously disagreed with the GAO report, quoted in the WP piece, calling the report ” ‘fatally and hopelessly flawed,’ and said auditors improperly compared payroll data with SSA data.”

In his printed statement for the hearing, Astrue said:

“Of the 20 cases that GAO reviewed, GAO investigated only one problematic CDL case and only one problematic case involving a commercial vehicle company. GAO did not conclusively prove fraud in any of these 20 cases and has referred only 5 of these cases to our Office of the Inspector General (OIG).

“We do not intend to minimize the importance of the issues raised in this investigation, and we take our stewardship responsibilities very seriously. Nevertheless, the results apply to only these 20 non-representative cases, and after reviewing these 20 cases, we found that we had already detected overpayments for half and believe that we would have identified the remaining cases through subsequent enforcement activities if earnings were reported on the W-2 or as self-employment income to the IRS.”

Gregory Kutz, managing director of GAO’s Forensic Audits and Special Investigation division acknowledges the preliminary nature of the findings. From the main report itself:

“Thousands of federal employees, commercial drivers, and owners of commercial vehicle companies received Social Security disability benefits during fiscal year 2008, though we could not determine the extent to which beneficiaries improperly or fraudulently received payments. Because further investigation is required to determine whether these individuals are entitled to receive payments, our analysis provides only an indicator of potentially improper or fraudulent activity.”

Curiously, one of the disputed cases was for an employee who works for the SSA, and SSA officials had no idea until informed by the GAO. According to the WP story, “And in an ironic twist, a Social Security Administration worker from Arizona received $11,000 in overpayments after she was hired by the agency in 2007/ The SSA did not have information about her disability in her files, the GAO said.”

Stay tuned–these questions aren’t going away anytime soon.

Writing for “Your Money” in the July 30 edition of The New York Times, Tara Siegel Barnard says the mounting national debt will exert increasing pressure on lawmakers to reduce and that Social Security may well be one program they will tap for reductions.

“The program,” Barnard writes, “which has its own dedicated stream of income, is projected to pay out more this year than it is taking in, but that is a function of the weak economy. Social Security will, according to the last annual report from its trustees, be able to pay full benefits through 2037. Then, if there are no changes in the program in the meantime, the taxes collected will be enough to pay out only about 75 percent of benefits through 2083.

“So while Social Security’s finances are stable in the short term, most experts agree that the program needs to be bolstered for the long term. Among the proposals circulating is one from Representative John Boehner of Ohio, the House Republican leader, who recently suggested raising the retirement age to 70 for people at least 20 years from retirement.

“Other options include increasing Social Security payroll taxes, subjecting more income to the tax, reducing initial benefit payments or cutting cost-of-living increases (which would affect current retirees).”

In short, Barnard’s assessment comes closer to that of MoveOn.org and its Top 5 Social Security Myths than with the position (from Part 1) of the Poughkeepsie Journal, which says “Social Security could run out of money in about 17 years.”  Barnard quotes the trustees as saying the fund can pay full benefits until 2017; MoveOn says “the next quarter century.” Close enough.

Then, with different perspectives, Barnard and MoveOn basically agree that after that, Social Security can still meet about 75 per cent of its obligations–and that’s with no changes.

From that point, Barnard takes a different tack, postulating various scenarios in which a hypothetical couple is forced to save more and more (that is, cut spending) just to afloat for their retirement years. For the conclusion, Barnard quotes a financial planner consulted for the column:

“One financial planner, who has dual citizenship in the United States and Greece, said he was not taking chances. ‘Having seen what happened in Greece, I feel even more strongly today that I should not count on any Social Security for me and my younger clients,’ said the planner, George Papadopoulos, 43, of Novi, Mich. ‘I will continue to tell clients not to highly rely on Social Security and think of any money coming their way as gravy.’ ”

It’s a good column, peppered with thoughtful points and sobering consideration. But, taken together with MoveON.org’s Top 5 Myths, it doesn’t sound as though we need to panic about the retirement aspect of the Social Security fund.

The Social Security Disability Insurance (SSDI) fund, however, is in trouble. And fixing it requires way more than Band-Aid legislation in the next few years. In short, the fund is financed mostly by a 1.8 per cent payroll tax and at current rates will be in serious trouble in only five years. And by 2018, a short three years later, it will be broke, according to a recent study by the Congressional Budget Office (CBO), which makes a brief available here.

A July 27 report at DOTmedNews says the main reason for the projected shortfall will be increases in the number of recipients, but that the financial crisis also will be a contributing factor. “Between 1970 and 2009, the program increased from 2.7 million to 9.7 million people.

“The reasons for the growth in beneficiaries include aging of the population; changes in laws that reversed previous restrictive policies in obtaining benefits; the growth of women in the workplace; and changes in overall health of the population. The last reason is not clearly defined, but may relate to some conditions no longer having the same mortality rate, such as HIV/AIDS. Another factor for the growth seems to be lack of job opportunities due to the current economic crisis.”

Indeed, from the brief itself, the CBO writes: “Between 1970 and 2009, the number of people receiving
DI benefits more than tripled, from 2.7 million to 9.7 million.  That jump, which significantly outpaced the increase in the working-age population during that period, is attributable to several changes—in characteristics of that population, in federal policy, and in opportunities for employment.”

Of course, the elephant in the room here is the Baby Boomers and attendant rise of women in the workforce. And those numbers aren’t diminishing anytime, soon.

However, one item that seems to get overlooked is administrative costs. The CBO is quick to point out other remedies: reduce outlays (read “cut benefits”); increase the payroll tax allotment; find other sources of federal funds; even one suggestion about modifying the regs on acceptable work limits.

Yet, look at the rise in internal costs that accompanied the more-than-tripling of beneficiaries: “In addition, during those years, the average inflation-adjusted cost per person receiving DI benefits rose from about $6,900 to about $12,800 (in 2010 dollars). As a result, inflation-adjusted expenditures for the DI program, including administrative costs, increased nearly sevenfold between 1970 and 2009, climbing from $18 billion to $124 billion (in 2010 dollars).”

The brief includes a summary that opens the door for discussion about ways to fix the program, and we’ll revisit this topic from time to time in future installments. But the takeaway here is abundantly clear: We have time to ensure that Social Security retirement benefits are properly funded, thereby easing fears of the younger generation that they will be shortchanged.

But the time to address the coming shortfall in SDDI funding is upon us, today,

One thing is certain, though: in the national debate about the soundness of Social Security, confusion reigns.  It’s important to understand the arguments and get accurate information because although each program has separate funding, the general Social Security retirement benefits, Social Security Disability Insurance (SSDI), and Supplemental Security Income (SSI) are all administered by the Social Security Administration. In fact, some of the confusion over retirement benefits may have come about due to a recent discouraging report about SSDI from the Congressional Budget Office (more in Part 2).

Dividing the debate into two camps, we have on one end of the spectrum the Sky-is-Falling group, who maintain Social Security is doomed without drastic intervention; the other side we might label as the Hogwash group, who maintain not only is the general Social Security fund in good shape but also that Sky Fallers are blowing things out of proportion in an attempt to scare people into accepting fewer benefits.

This is from poughkeepsiejournal.com (July 27), an example of the Falling Sky position:

“A recent congressional report paints a bleak picture, indeed. It says Social Security could run out of money in about 17 years, as the program now pays out more money in benefits than it collects in payroll taxes. It faces a staggering $5.3 trillion shortfall over the next 75 years, unless changes are made. No wonder a recent USA Today/Gallup Poll showed that public confidence in the system is waning.

“The solvency of Social Security affects everyone. The program, the main source of income for millions of retirees, is financed by a 6.2 percent payroll tax on wages below $106,800. The tax is paid by workers and matched by employers. Currently, 53 million Americans get Social Security benefits averaging $1,067 a month.”

The Hogwashers say that’s baloney, designed to get you riled up then despondent enough to accept less–eventually. For instance, here’s an edited version of the  Top Five Social Security Myths from MoveOn.org (read there for the full text, including footnotes and citations):

Myth: Social Security is going broke.

Reality: There is no Social Security crisis. By 2023, Social Security will have a $4.3 trillion surplus (yes, trillion with a ‘T’). It can pay out all scheduled benefits for the next quarter-century with no changes whatsoever.¹ After 2037, it’ll still be able to pay out 75% of scheduled benefits–and again, that’s without any changes. The program started preparing for the Baby Boomers retirement decades ago.² Anyone who insists Social Security is broke probably wants to break it themselves.

Myth: We have to raise the retirement age because people are living longer.

Reality: This is a red-herring to trick you into agreeing to benefit cuts. Retirees are living about the same amount of time as they were in the 1930s. The reason average life expectancy is higher is mostly because many fewer people die as children than did 70 years ago.³ What’s more, what gains there have been are distributed very unevenly–since 1972, life expectancy increased by 6.5 years for workers in the top half of the income brackets, but by less than 2 years for those in the bottom half.⁴ But those intent on cutting Social Security love this argument because raising the retirement age is the same as an across-the-board benefit cut.

Myth: The Social Security Trust Fund has been raided and is full of IOUs.

Reality: Not even close to true. The Social Security Trust Fund isn’t full of IOUs, it’s full of U.S. Treasury Bonds. And those bonds are backed by the full faith and credit of the United States.7 The reason Social Security holds only treasury bonds is the same reason many Americans do: The federal government has never missed a single interest payment on its debts.

Myth: Benefit cuts are the only way to fix Social Security.

Reality: Social Security doesn’t need to be fixed. But if we want to strengthen it, here’s a better way: Make the rich pay their fair share. If the very rich paid taxes on all of their income, Social Security would be sustainable for decades to come.⁵ Right now, high earners only pay Social Security taxes on the first $106,000 of their income.⁶

Myth: Social Security adds to the deficit

Reality: It’s not just wrong — it’s impossible! By law, Social Security funds are separate from the budget, and it must pay its own way. That means that Social Security can’t add one penny to the deficit.¹

Perhaps there is a mid-position, though. A July 30 “Your Money” column in The New York Times takes the stance that even though the long-terms threats will have to be dealt with, Social Security in the near-term is in good shape. The column takes a look at worst-case scenarios for a test-case couple and makes suggestions about increased savings. We’ll examine that and the very real problem facing SSDI in Part 2.

Osteomalacia has to do with a softening of your bones. In fact, osteomalacia means “soft bones”.

Osteoid is the bone protein matrix, composed primarily of type 1 collagen. When there is insufficient mineral or osteoblast dysfunction, the osteoid does not mineralize properly, and it accumulates.

When the newly formed bone of the growth plate does not mineralize, the growth plate becomes thick, wide and irregular. This results in the clinical diagnosis of rickets and is seen only in children because adults no longer have growth plates. When the remodeled bone does not mineralize, osteomalacia occurs, and this happens in all ages. Most of the hereditary causes of osteomalacia appear during childhood and cause rickets.

Soft bones are more likely to bow and fracture than are harder, healthy bones. In osteomalacia your bone tends to break down faster than it can re-form.

Osteomalacia is not the same as osteoporosis. Osteoporosis is another bone disorder that can also lead to bone fractures. Osteomalacia results from a defect in your bone-building process. Osteoporosis comes as a result of a weakening of previously constructed bone.

You may not experience any effects with osteomalacia in the early stages of this disorder, although signs and symptoms could be visible on X-ray pictures or other diagnostic tests. As your osteomalacia progresses, you may experience muscle weakness and bone pain.

Muscle weakness can take the form of stiffness or weakness in your arms and legs, discomfort while moving and decreased muscle tone. Osteomalacia may cause you to walk with a waddling motion.

You may also experience bone pain, especially in your pelvis, lower spine, feet and legs. The pain you have with osteomalacia is usually aching and dull and gets worse during physical activity. You might notice that it produces severe pain if you gently press on a bone like your shin bone, for example.

You may have osteomalacia. Osteomalacia and/or other conditions along with or resulting from it may be the cause of your disability and being unable to work.

Do you need help because of your disability? Do you need financial help?

Have you applied for financial assistance from the Social Security Administration by applying for Social Security disability benefits or disability benefits because of the disability caused by osteomalacia and/or related conditions? Were you denied?

You may be thinking about appealing the denial by the Social Security Administration. If this is what you decide to do, here is something that you need to think about.

You may need a disability lawyer like the one you will find at Social Security Home to advise you in what can prove to be a long and trying procedure. The reason why this is true is because people who are helped and represented by a dependable disability attorney are approved more often than those who do not have a lawyer.

Step 3 is where we get into “the meat” of disability finance:

• Employer sick pay
• State benefits
• Disability insurance benefits
• Workers comp
• SSDI/SSI

Employer sick pay, or sick leave, may be generous in one industry, lean in another. At a small company, nothing may be available other than wishes for good luck. Some large and even mid-size companies offer long-term disability policies. Where ever you work, you should learn the specifics of the policy because it may be your first line of defense, even if it runs out long before a health problem is resolved.

According to the Insurance Information Institute, “In some states, such as Hawaii, New Jersey, New York and Rhode Island, state law requires employers to provide disability benefits for up to 26 weeks.” (Don’t confuse this with workers compensation.)

Over at CostHelper.com, we see that “Disability insurance provides income to help pay your living expenses if you are unable to work for a significant length of time because of injury or illness. Generally benefit payments are 60 percent of your total salary.”

The CDA page explains that “[d]isability insurance can be an invaluable lifeline for disabled workers and their families:

• If your employer offers disability insurance make sure you fully understand what benefits are available to you and how your company’s disability insurance program works.
• If disability insurance is NOT provided by your employer, it can be purchased individually at affordable rates. Contact your insurance agent for more information.
• Self-employed individuals can also benefit greatly by having disability insurance. Consult your financial advisor or insurance agent for assistance.”

The CostHelper.com page says to “[e]xpect to pay between 1 percent and 3 percent of your annual salary for a good disability plan, according to DisabilityQuotes.com. That works out to $600-$1,800 for someone earning $60,000 a year.”

Earlier, we cautioned not to confuse state disability benefits (if available) with workers comp benefits. In the usual sense, workers comp addresses workers who are injured on the job. However, if work-related, an illness and subsequent disability may be covered by workers comp, too. As the CDA page says, “After a short waiting period, workers’ compensation generally pays a portion of your former wages or salary. Benefits vary significantly by state and are restricted to a specific maximum and minimum amount.” Here’s a link to programs in each state.

As mentioned in our preceding post, SSDI is a form of  federal “insurance” that workers qualify for by having paid enough funds into Social Security (from paychecks) by working long enough at jobs with employers who make the payments (including self-employed). Here’s the link to the main disability information page of the SSA, including topics such as basic program information, who is eligible, how to apply and so forth.

In your planning, count on at least a six-month wait before receiving SSDI payments.

SSI is not funded by paycheck contributions but by general tax revenue; it provides cash to meet basic needs for food, clothing, and shelter. The program is designed to help aged, blind, and disabled people, who have little or no income and few resources.

Here is a link to the SSA’s page outlining eligibility requirements for SSI.

Here’s the bracing news: If you don’t have access to any of the preceding resources, you’re pretty much left to your own devices and social-family network. For the “average” long-term disability, you’ll need to cobble together some method to make it for 2 1/2 years.

The first fallback position is personal savings. Then you’re looking at such drastic measures as using credit cards, dipping into a mortgage or retirement funds. Here’s how the CDA page lays it out:

• “Personal savings
  A small percentage of Americans are lucky enough to have savings, investments or other financial resources that can supplement or replace their income during a prolonged disability. The rest of us, unfortunately, are not so lucky. Any disability, especially one lasting more than 90 days, would quickly drain our savings. After all, Americans’ savings rate is at an all-time low. A full 1/3 of Americans have no retirement savings and no pension, according to the Social Security Administration. Talk about stress!
• “Last Resort” income sources
  If all else fails, you can begin paying expenses with credit cards, get a second mortgage, take out a home equity line of credit, withdraw money from your retirement plan, and ask family and friends for assistance.”

As you can see, maintaining one’s health is the best option. Of course, no one can do that indefinitely, so financial planning is the next priority. If you’re still healthy, look for ways to promote an even healthier lifestyle. Then, begin your financial planning process.

If you or a loved one needs disability help now, you can use the links provided to contact SSA officials or advocates and disability attorneys.

Supplemental Security Income or SSI is a social security disability benefit given to certain qualifying individuals including: the aged, blind and disabled who meet certain income and resource levels. Income and resource levels change each year and can be found on the Social Security Administration’s website.  Supplemental Security Income is given to these individuals for clothing, housing and food expenses.

The federal government funds Supplemental Security Income through general tax revenues not the Social Security Trust Fund.  The federal government treats Supplemental Security Income as a public welfare benefit similar to food stamps and does not consider Supplemental Security Income or SSI to be income for the purposes of child support payments. Therefore, the federal government does not allow Supplemental Security Income benefits to be garnished.

In contrast, Social Security Disability Insurance or SSDI was money paid into the Social Security Trust Fund through employment taxes based on a percentage of the employee’s earnings. The goal of the Social Security Trust Fund is to allow for the replacement of income for certain employees who become disabled and are unable to work.

According to the federal government, the Social Security Disability Income or SSDI benefit is considered a substitute for lost wages and is eligible to be garnished for child support payments. One benefit of Social Security Disability Insurance, however, is children of qualifying disabled workers who receive Social Security Disability Insurance payments may be eligible to receive Social Security Disability Insurance or SSDI benefits until a certain age (18 under most circumstances) and these SSDI payments may be subtracted from the child support amount owed.

If you have questions regarding your Social Security Disability benefit or the garnishment of you Social Security Disability benefits to pay for child support, it is important to contact a Social Security Disability Attorney who can answer all of your questions. Social Security Disability Attorneys can also answer questions about applying for Social Security Disability Benefits or help you recover any Social Security Disability Insurance or Supplemental Security Income benefits you may have lost.

The acronyms SSDI and SSI refer to the most well known programs that help people who develop long term disabilities. Both are administered by the Social Security Administration (SSA), and each is notorious for being cumbersome, slow, and difficult for the average person to deal with–which is why many who need disability help turn to professional advocates and attorneys who specialize in the field.

SSDI = Social Security Disability Insurance, which pays benefits to workers (and some family members) who qualify; the basic qualification to receive these insurance payments is that you have:

1. worked long enough to have paid
2. enough Social Security taxes through payday deductions

to fund your “insurance account.” In other words, if your work history comprises jobs that did not pay–or pay enough–into Social Security, in most cases you won’t qualify for SSDI.

In that case, however, you may qualify for SSI, which stands for Supplemental Security Income–this program is not based on payments made from jobs but does award benefits based on financial need.

Together these two programs account for the bulk of what most of us consider the disability program for Americans. However, as mentioned, jumping through the hoops can be maddening, and the built-in delays can result in a payments arriving so slowly that the claimant has already died.

For a quick example of how slow the SSA acts, have a gander at its disability front page. As of post time, you can look to the top, upper right of the page and see a link to a press release with the following headline:

Social Security Administration Attacks Disability Backlog

Which sounds like a good thing, right? Well, it is–always good to catch up on a backlog.

But notice the dateline  ===> Tuesday, October 9 , 2007

Shoot, we have more recent, more accurate info right here, toward the end of a May 2010 post in which we discuss delay issues among the various states.

That being said, SSI/SSDI remain the most publicly known disability programs. But they’re not the only alternative.

The Council for Disability Awareness (CDA) is a nonprofit organization that says its purpose is to inform and educate “the American public about the widespread and growing frequency of disability, and the financial impact it can have.”

However, judging from its “members page,” one might infer the group has an interest in selling disability insurance. That being said, however, the Web site does indeed offer a wealth of information.

For one thing, here’s a page about “reducing your chances” of becoming disabled. Pretty standard stuff: wellness tips such as “quit smoking, get regular checkups,” and so forth. Of course, most people don’t think about disability until a family member or they themselves become disabled.

But the statistics suggest that all adults should be aware of at least the basics of disability. For instance, it seems to be a common misperception that “events” cause most disabilities: a car wreck, an accident at work or home, etc..

But according to CDA, which claims to base its figures on the latest available census data and on info from the Centers for Disease Control, the most common causes of disability are injuries or accidents but rather:

Oddly enough, this CDA page is quite contradictory, both in overall tone and in these specific statements (emphasis added):

• “It strikes like a bolt from the blue: unwanted, unexpected, unwelcome. Unfortunately, many of us are totally unprepared for the financial hit that disability can bring.
• “Most Americans live paycheck to paycheck. There’s little or no money left for unexpected emergencies like an injury or illness – the primary causes of disability.

Perhaps the intention was to say something like, “unless you injured in an accident or taken with sudden illness, disability can creep up on you, until there’s a sudden realization that your condition leaves you in financial peril.”

At any rate, the CDA’s suggestions are sound as far as how to think about finances in the event of a disability, including:

Step 1 is, basically, preparing a budget. (The page has a link to a “calculator” routine.)

Step 2 is to, as may be expected, isolate and trim unnecessary expenses.

Step 3 is where we get into “the meat” of disability finance:

• Employer sick pay
• State benefits
• Disability insurance benefits
• Workers comp
• SSDI/SSI

That is where we will continue the discussion in Part 2.

According to a May 28 CNNMoney.com piece, “Democrats [in the House] spent much of the week trying to round up votes to extend the jobless benefits deadline,” and the “House voted Friday to extend the deadline to file for federal unemployment benefits, but not before the Senate recessed for a week-long Memorial Day break. So jobless Americans will start running out of benefits after June 2.”

“As a result,” says a May 29 BusinessWeek article, “19,000 Americans will see their jobless benefits interrupted by June 5, with that number projected to grow to more than 320,000 by the end of the second week of June, according to the Labor Department.”

Apparently, the Memorial Day break was not enough respite. One headline, from the June 10 edition of The Miami Herald, tells the tale: “Congress takes long weekend, lets jobless benefits hang.”

From that article: “Meanwhile, the National Employment Law Project estimated that 325,000 people won’t be able to collect benefits. This is the third time that Congress has missed on a deadline for extending the benefits; it’s expected that they’ll get paid retroactively.

“In addition, people laid off after June 1 won’t be eligible for government help with their health insurance, and the government’s program to fund summer jobs – which had been expected to provide an estimated 330,000 jobs for at-risk youths – remains unfunded and thus stalled.”

Also up in the air is what happens to needed legislation for Medicaid.

According to the May 28 CNNMoney.com piece, “The final version, approved by a 215-204 vote, extended the deadline to file for unemployment benefits through November, but jettisoned sending $24 billion in Medicaid assistance to the states and extending the 65% federal subsidy for COBRA health insurance premiums.”

The May 29 BusinessWeek article reports: “Lawmakers also left without Senate action on forestalling a long-scheduled 21 percent cut in Medicare payments to doctors, set to take effect at the end of this month. The Centers for Medicare and Medicaid Services said it will delay paying physicians’ claims to give Congress more to time to act.

“ ‘This is complete mismanagement of a health-care program that America’s seniors and disabled rely on,’ said American Medical Association President J. James Rohack in a statement.”

Now–two holiday breaks later–says an MLive.com piece posted today, the  Senate “measure does not provide state aid for Medicaid and welfare nor does it include any of the revenue-generating tax increases in the Democratic bill.”

And various states are plenty concerned. Here’s some snippets from a roundup at today’s Kaiser Health News:

From The Boston Globe: ” ‘The Massachusetts delegation sent letters yesterday to House and Senate leaders urging them to support an extension of Medicaid funding that officials in Massachusetts and other states say is vital to prevent drastic cuts in services and increases in layoffs.’ Newly elected Republican Sen. Scott Brown did not sign the letter because the proposal would add to the federal deficit. But the 11 Democrats in the delegation were adamant that the extension be approved. ‘Governor Deval Patrick and state lawmakers have been counting on the extension to fund about $800 million of next year’s budget.’ “

From the Charlotte Observer: “Legislators are at odds about what to do regarding ‘a $500 million hole that may appear in that budget if Congress doesn’t act on a Medicaid extension. Both the state Senate and the House have adopted versions of the budget that include the Medicaid money. … Now lawmakers are nervously waiting to hear whether Congress will approve the Medicaid extension bill that at least 30 states are counting on to help avoid teacher layoffs and other cuts’ “

From The Denver Post: “If Congress chooses not to approve a six-month extension of Medicaid help to the states, Colorado could face a $211 million budget hole and the prospect of another cut to K-12 education or other programs. Medicaid, a state and federally funded program that provides health care for the poor, now covers about 500,000 Coloradans. During the recession, the federal government has increased its share of Medicaid funding to the states, which have seen tax revenues plunge as Medicaid enrollment rose.”

]]> http://www.socialsecurityhome.com/disabilityblog/2010/06/11/capitol-hill-attention-to-benefits-medicaid-stalled-as-congress-takes-another-break/feed/ 0 http://www.socialsecurityhome.com/disabilityblog/2010/05/08/cancer-victim-dies-before-benefits-arrive-three-charged-two-convicted-in-terroristic-threats-against-ssa/ http://www.socialsecurityhome.com/disabilityblog/2010/05/08/cancer-victim-dies-before-benefits-arrive-three-charged-two-convicted-in-terroristic-threats-against-ssa/#comments Sun, 09 May 2010 01:16:42 +0000 mike http://www.socialsecurityhome.com/disabilityblog/?p=967 A few weeks ago, we discussed the case of a Farmington, New Hampshire woman who was fighting terminal cancer while waiting on her disability checks to start arriving. Heather Russell, 47, was hoping to live long enough to see her cousin get married this month, and then a niece’s wedding in June.

She made it to the cousin’s ceremony but died early April 27–and still had never seen even one disability check for the Stage IV small-cell lung cancer diagnosed in May 2009.

First check was expected this month

According to the online version of Foster’s Daily Democrat, Russell “was supposed to see her first disability check [in late May], at the end of the mandatory five-month waiting period disability insurance recipients have to endure. An agency spokesperson has said the delay is to ensure aid is going to people who are truly disabled. There is a bill in Congress to abolish the waiting period.”

Unfortunately, Russell’s case is more the rule than an exception. The SSI/SSDI process is notorious nationwide for the backlog of cases, even in regions that have shown improvement.  According to an April 19 report in the Fort Worth Star-Telegram, North Texans are waiting about two months less for hearings than they were a year ago, an improvement related to “a plan launched last year [that] has helped speed turnaround. The agency hired 147 administrative law judges, who hear appeal cases, and 1,000 support staff in fiscal 2009, according to the agency.” More hiring is planned for this year, according to SSA.

National rate improving, but still tedious

Nationwide the 2008 backlog of 750,000 cases required a national average wait-time of 514 days, according to the S-T, down this year to 697,437 cases requiring an average 442 days, although some areas still experience delays of well over 600 days.

The article also succinctly summarizes the cruelty of the trap so often faced by those in the queue: “While they wait, applicants get no medical benefits or financial assistance. If they find temporary work to make ends meet until they get a ruling, they risk having their claim denied because they are considered employed.”

White powder and threats of violence

In three recent, apparently unrelated cases, judges have handed down two prison sentences to men convicted of terroristic behavior toward the SSA. Two of the men, one of whom was to be arraigned on May 7,  mailed letters containing talcum, or baby powder, to various agency offices, intending to mimic the post-9/11 anthrax scare.

According to a May 3 report in the Las Vegas Sun, “A convicted felon who made threatening telephone calls to several Social Security offices after his benefits were terminated was sentenced Friday to 46 months in prison and three years of supervised release, Nevada’s U.S. Attorney Daniel Bogden said today.”

Described as a 54-year-old “whose address is unknown to authorities,” Leon Muhammad “was sentenced by U.S. District Judge Roger Hunt. Muhammad, who was arrested on Dec. 17 in Columbia, S.C., pleaded guilty on March 31 to making threatening communications in interstate commerce. He was sentenced at the top of the available sentencing range because he had two prior violent felony convictions in New York and New Jersey and was determined to be a career offender.”

Man had, then lost, benefits

Muhammad was said to have begun receiving benefits in 2005, but in November 2009 SSA dropped him. “Between Nov. 20 and Dec. 3, Muhammad made several threatening telephone calls from Las Vegas to Social Security call service centers in Baltimore, Salinas, Calif., and Auburn, Wash., in an attempt to secure the reinstatement of his benefits. At one point, Muhammad told a representative that if he did not receive payment in his bank account by a set time later that day, he would go to the Social Security office in Las Vegas, where he was vacationing, and create another ‘Valentine Blood Bath.’ ”

A few weeks earlier, a district judge in Alabama, according to an April 21 piece at al.com, “sentenced a Haleyville man to seven months in prison for mailing a letter containing white powder and photos of the 9/11 attacks to the Social Security Administration in Cullman.

“U.S. District Judge Karon Bowdre also sentenced Patrick Bryant Wilson, 41, to three years of supervised release, including seven months of home confinement.”

The deal was part of plea agreement reached in December. According to the defense attorney, Wilson was hurt on the job where he was a a regional manager and subsequently lost the job. He applied for benefits and was denied.

He used his home address

According to the plea agreement, says the article, Wilson “dropped off a letter Aug. 25 at the Cullman post office that was addressed to the Social Security Administration and listed Wilson’s home as the return address, according to his plea agreement. A postal worker noticed it was leaking a white powder, which was later determined to be baby powder. The letter also included two photos of the Twin Towers burning.”

In California, Timothy Cloud not only sent threatening letters to SSA offices but also addressed one to the president at the White House. Moreover, he had a “Plan B,” as explained by this piece in The Sacramento Bee:

“So far, Timothy Cloud’s seems to be working out for him. . . .

” ‘I mailed the envelopes … to those addresses because I hoped people would think it was anthrax,’ he wrote [in a statement to federal agents]. ‘I mailed the letters because I was mad. I knew I would be caught.

” ‘I do not regret sending the envelopes because that was my retirement plan. Either I was going to get Social Security or I was going to jail.’

Cloud is described as a 62-year-old homeless man with a record as a sex offender. Apparently well known on the streets, he seemed to be going about his hand-to-mouth routine when agents finally caught up with him.

‘Three hots and a cot’

His attorney, whom Cloud was initially reluctant to accept, was quoted as saying: “All he wanted was three hots and a cot,” said his attorney, Assistant Federal Defender Matthew Bockmon. “He was frustrated with Social Security over denial of benefits to which he feels entitled.

“This is a pathetic case of a homeless person making a desperate cry for help. He’s been on the streets a long time; long enough that he was sick of it.”

Thomas Prusik is accused of forging his mother’s death certificate and impersonating her to continue collecting her Social Security checks since her death in 2003. He even went so far as to impersonate her to renew her driver’s license in April of this year.

Seems strange that someone could get away with that type of fraud for 6 years.

It might have gone on longer had he not been involved in a criminal investigation connected to a foreclosure case.