Post by nomadic on Aug 22, 2020 7:28:29 GMT 7
Social Security backlog led to bankruptcies and increased risk of death, government watchdog finds
A new study released by the government’s watchdog the Government Accountability Office (GAO) has found that long wait times for appeals for disability claims had disastrous impacts for those in need of disability benefits from the Social Security Administration. Over 100,000 people died while waiting for their appeal, while roughly 50,000 had to file for bankruptcy.
The report comes at a time of “heightened risk” to “worsening medical and financial conditions,” the GAO says, for Americans living with disabilities due to the coronavirus pandemic. The report’s findings could indicate troubling times ahead for the millions who might need disability benefits.
Roughly 10 million people receive disability benefits, according to the SSA Annual Statistical Report. The majority of disability benefits went to disabled workers — 87% of all beneficiaries. In December of 2018, payments to disabled beneficiaries totaled almost $11.6 billion.
As part of this analysis the GAO examined wait times and outcomes during the fiscal years 2014 to 2019. They examined applicants for disability benefits who appealed Social Security Administration’s (SSA) decision to deny benefits or only partly award benefits they applied for. The study found that most people who filed an appeal “waited more than 1 year for a final decision on their claim.”
According to the analysis of SSA data, wait times spiked from 561 days on average in 2010 to nearly 840 days on average in 2015. The study says this wait time followed an increase of disability claims subsequent to the Great Recession, which could prove worrisome given the COVID-19 pandemic.
“Wait times have decreased in more recent years as SSA had made substantial progress in reducing the wait at the hearings level prior to the Coronavirus Disease 2019 (COVID-19) pandemic,” the study highlighted.
“For example, SSA reported that the average processing time for hearings decisions decreased from 605 days in fiscal year 2017 to 506 days in fiscal year 2019.”
According to the SSA, disability application denials have increased throughout the years. In 1999 the award rate was 56% — by 2017 it had declined to just under 29%.
But on appeal, applicants, especially ones with lawyers, do have a good shot of getting their original claim decision overturned. But it takes time, and money.
‘Consequences are dire’
It’s a frustrating process, says Economic Policy Institute Economist Monique Morrissey, whose expertise lies in retirement security and Social Security.
She says that claimants receiving benefits after appeal “isn’t necessarily a good thing,” because it highlights that most people should have received their benefits from the start.
“Their [SSA] M.O. is to say ‘no’ and tell you that you can appeal,” she said. “The process almost requires getting an advocate, if you can afford to get a lawyer.”
These benefits, Morrissey added, are “an absolutely critical safety net and they shouldn’t be doing that.”
What’s more, the wait times can be devastating for people desperately in need of their benefits immediately.
“In some cases, the wait is as long as 2 years — and they’re supposed to give you the back benefits. But that doesn’t help when you’ve been waiting for over 2 years for money that you need,” Morrissey said.
Story continues
finance.yahoo.com/news/social-security-backlog-led-to-bankruptcies-and-increased-risk-of-death-government-watchdog-finds-202040572.html
A new study released by the government’s watchdog the Government Accountability Office (GAO) has found that long wait times for appeals for disability claims had disastrous impacts for those in need of disability benefits from the Social Security Administration. Over 100,000 people died while waiting for their appeal, while roughly 50,000 had to file for bankruptcy.
The report comes at a time of “heightened risk” to “worsening medical and financial conditions,” the GAO says, for Americans living with disabilities due to the coronavirus pandemic. The report’s findings could indicate troubling times ahead for the millions who might need disability benefits.
Roughly 10 million people receive disability benefits, according to the SSA Annual Statistical Report. The majority of disability benefits went to disabled workers — 87% of all beneficiaries. In December of 2018, payments to disabled beneficiaries totaled almost $11.6 billion.
As part of this analysis the GAO examined wait times and outcomes during the fiscal years 2014 to 2019. They examined applicants for disability benefits who appealed Social Security Administration’s (SSA) decision to deny benefits or only partly award benefits they applied for. The study found that most people who filed an appeal “waited more than 1 year for a final decision on their claim.”
According to the analysis of SSA data, wait times spiked from 561 days on average in 2010 to nearly 840 days on average in 2015. The study says this wait time followed an increase of disability claims subsequent to the Great Recession, which could prove worrisome given the COVID-19 pandemic.
“Wait times have decreased in more recent years as SSA had made substantial progress in reducing the wait at the hearings level prior to the Coronavirus Disease 2019 (COVID-19) pandemic,” the study highlighted.
“For example, SSA reported that the average processing time for hearings decisions decreased from 605 days in fiscal year 2017 to 506 days in fiscal year 2019.”
According to the SSA, disability application denials have increased throughout the years. In 1999 the award rate was 56% — by 2017 it had declined to just under 29%.
But on appeal, applicants, especially ones with lawyers, do have a good shot of getting their original claim decision overturned. But it takes time, and money.
‘Consequences are dire’
It’s a frustrating process, says Economic Policy Institute Economist Monique Morrissey, whose expertise lies in retirement security and Social Security.
She says that claimants receiving benefits after appeal “isn’t necessarily a good thing,” because it highlights that most people should have received their benefits from the start.
“Their [SSA] M.O. is to say ‘no’ and tell you that you can appeal,” she said. “The process almost requires getting an advocate, if you can afford to get a lawyer.”
These benefits, Morrissey added, are “an absolutely critical safety net and they shouldn’t be doing that.”
What’s more, the wait times can be devastating for people desperately in need of their benefits immediately.
“In some cases, the wait is as long as 2 years — and they’re supposed to give you the back benefits. But that doesn’t help when you’ve been waiting for over 2 years for money that you need,” Morrissey said.
Story continues
finance.yahoo.com/news/social-security-backlog-led-to-bankruptcies-and-increased-risk-of-death-government-watchdog-finds-202040572.html
