Pending Cases Drop Below 700,000; Processing Time Down 72 Days

Michael J. Astrue, Commissioner of Social Security, announced that the number of disability hearings pending stands at 697,437 cases — the lowest level since June 2005 and down more than 71,000 cases since December 2008, when the trend of month-by-month reductions began. In addition, the average processing time for hearing decisions has decreased to 442 days, down from a high of 514 days at the end of 2008.

“We have decreased the number of hearings pending by almost 10 percent over the last 14 months and cut the time it takes to make a decision by nearly two and a half months. This remarkable progress shows our backlog reduction plan is working,” Commissioner Astrue said. “With ongoing support from the President and Congress as well as the efforts of our hardworking employees, I am confident the hearings backlog will continue to diminish.”

Social Security has actively addressed the hearings backlog and increased the capacity to hold more hearings. The agency hired 147 Administrative Law Judges (ALJs) and over 1,000 support staff in 2009, and has plans to hire an additional 226 ALJs this year. The agency now has four National Hearing Centers to help process hearings by video conference for the most hard-hit areas of the country. The agency also has aggressive plans to open 14 new hearing offices and three satellite offices by the end of the year. The first of these offices was opened in Anchorage, Alaska on February 19, 2010.

Michael J. Astrue, Commissioner of Social Security, announced that Starting March 1, 2010, Social Security is adding 38 more conditions to its list of Compassionate Allowances. This is the first expansion since the original list of 50 conditions – 25 rare diseases and 25 cancers – was announced in October 2008. The new conditions range from adult brain disorders, such as early-onset Alzheimer’s disease, and rare diseases that primarily affect children. The complete list of the new Compassionate Allowance conditions is available if you click here.

“The addition of these new conditions expands the scope of Compassionate Allowances to a broader subgroup of conditions like early-onset Alzheimer’s disease,” Commissioner Astrue said. “The expansion we are announcing today means tens of thousands of Americans with devastating disabilities will now get approved for benefits in a matter of days rather than months and years.”

Compassionate Allowances are a way of quickly identifying diseases and other medical conditions that clearly qualify for Social Security and Supplemental Security Income disability benefits. It allows Social Security to electronically target and make speedy decisions for the most obviously disabled individuals. In developing the expanded list of conditions, Social Security held public hearings and worked closely with the National Institutes of Health, the Alzheimer’s Association, the National Organization for Rare Disorders, and other groups.

“The diagnosis of Alzheimer’s indicates significant cognitive impairment that interferes with daily living activities, including the ability to work,” said Harry Johns, President and CEO of the Alzheimer’s Association. “Now, individuals who are dealing with the enormous challenges of Alzheimer’s won’t also have to endure the financial and emotional toll of a long disability decision process.”

“We will continue to hold hearings and look for other diseases and conditions that can be added to our list of Compassionate Allowances,” Commissioner Astrue said. “There can be no higher priority than getting disability benefits quickly to those Americans with these severe and life-threatening conditions.”

Michael J. Astrue, Commissioner of Social Security, announced on February 1, 2010 that 15 healthcare providers and networks have received $17.4 million in contract awards to provide electronic medical records to the Social Security Administration (SSA). These electronic medical records, which will be sent through the Nationwide Health Information Network (NHIN), will hopefully shorten the time it takes Social Security to make a disability decision and will improve the speed, accuracy, and efficiency of the disability program.

“Using health information technology will improve our disability programs and provide better service to the public,” Commissioner Astrue said. “We’ve seen a significant increase in disability applications. To process them, the agency sends more than 15 million requests annually for medical records to healthcare providers. This largely paper-bound workload is generally the most time-consuming part of the disability decision process. The use of health IT will dramatically improve the speed, accuracy, and efficiency of this process, reducing the cost of making a disability decision for both the medical community and the American taxpayer.”

The contract awards are funded through the American Recovery and Reinvestment Act (Stimulus). They will require awardees, with a patient’s authorization, to send Social Security electronic medical records through the NHIN. The NHIN, a safe and secure method for receiving access to electronic medical records over the Internet, is an initiative of the Department of Health and Human Services supported by multiple government agencies and private sector entities.

For the last year, Social Security has been successfully testing health IT to obtain electronic medical records. Disability applications processed with electronic medical records from the test sites have significantly reduced processing times. Some decisions are now made in days, instead of weeks or months. Social Security expects to receive more than 3.3 million applications in fiscal year (FY) 2010, a 27 percent increase over FY 2008.

Michael J. Astrue, Commissioner of Social Security, and Chubby Checker, Grammy Award winner and rock and roll legend, have launched a new campaign to inform millions of Americans about a new “twist” in the law that makes it easier to qualify for extra help with Medicare prescription drug costs. The extra help program currently provides assistance to more than nine million older adults and people with disabilities — saving them an average of almost $4,000 a year on their Medicare prescription drug plan costs. To apply for extra help, there is an easy-to-use online application available at www.socialsecurity.gov.

To qualify for extra help, people must meet certain resource and income limits. The new Medicare law eases those requirements in two ways. First, it eliminates the cash value of life insurance from counting as a resource. Second, it eliminates the assistance people receive from others to pay for household expenses, such as food, rent, mortgage or utilities, from counting as income. There also is another important “twist” in the law. The application for extra help can now start the application process for Medicare Savings Programs — state programs that provide help with other Medicare costs. These programs help pay Medicare Part B (medical insurance) premiums. For some people, the Medicare Savings Programs also pay Medicare Part A (hospital insurance) premiums, if any, and Part A and B deductibles and co-payments.

To learn more about the extra help program and to view the new TV spot featuring Chubby Checker, go to www.socialsecurity.gov/extrahelp.

The Social Security Administration earlier this month mailed notices that contained incorrect January 2010 payment dates. These erroneous notices went to about 6 million beneficiaries who receive their payments on either the second, third, or fourth Wednesday of each month, and are part of the annual benefit notices that go to 52 million Social Security beneficiaries. In the notice the payment date is incorrectly shown as one week before what the actual date of payment will be. The other information in the notice, including the payment amount, is correct. Social Security is sending a letter explaining the error to beneficiaries who received the incorrect one as soon as possible.

“We apologize for the inconvenience and confusion these incorrect notices will cause,” said Michael J. Astrue, Commissioner of Social Security. “The problem was caused by an unfortunate human error. We are correcting the misinformation as quickly as possible, and we are reviewing our processes closely to prevent this type of mistake from happening in the future. People receiving Social Security benefits in January 2010 should know that their payment will arrive on the same payment day that it has arrived in the past.”

Michael J. Astrue, Commissioner of Social Security, today hosted the agency’s fifth public hearing on Compassionate Allowances. Commissioner Astrue was joined by Philip Wang, M.D., Dr. P.H., National Institute of Mental Health, National Institutes of Health, and Social Security executives. They heard testimony from some of the nation’s leading experts on schizophrenia about possible methods of identifying and implementing Compassionate Allowances for young adults with schizophrenia.

“Schizophrenia is a devastating disease that affects more than two million Americans, primarily individuals in their teens and twenties,” said Commissioner Astrue. “The onset of schizophrenia has life-changing consequences, which can include unemployment and homelessness. This hearing will help us to potentially identify the most severe cases and consider bringing them under our Compassionate Allowances umbrella.”

In October 2008, Social Security launched Compassionate Allowances to expedite the processing of disability claims for applicants with medical conditions so severe that their conditions by definition meet Social Security’s standards. “Our Compassionate Allowances and Quick Disability Determination processes are making a real difference by ensuring that Americans with devastating disabilities quickly receive the benefits they need,” Commissioner Astrue said. “This fiscal year, we expect to fast-track about 150,000 cases and we plan to add more diseases and impairments to these expedited processes in the coming months.”

Productivity and Processing Times Also Improve

Michael J. Astrue, Commissioner of Social Security, today announced that for the first time since 1999, the agency has ended the year with fewer disability hearings pending than in the prior year. Social Security ended fiscal year (FY) 2009 with 722,822 hearings pending compared to 760,813 hearings pending at the start of the year, a reduction of more than 37,000 cases. Over the same period, the average processing time for these cases improved from 514 days in FY 2008 to 491 in FY 2009.

“Our backlog reduction plan is working, and progress is accelerating,” Commissioner Astrue said. “Even in the face of a significant increase in our workloads as a result of the worst recession since the Great Depression, we have reduced the hearings backlog for nine consecutive months. Thanks to the efforts of thousands of hardworking Social Security employees and the additional funding we received from President Obama and the Congress, we have exceeded our backlog reduction goal for this year.”

To achieve its backlog reduction goals, the agency has embarked on the largest expansion in decades of its capacity to hear disability appeals. This year, the agency hired 147 new Administrative Law Judges (ALJs) and 850 support staff and plans to hire 226 additional ALJs plus support staff in FY 2010. To provide flexibility to assist the most backlogged hearing offices, the agency opened three new National Hearing Centers (NHCs) in Albuquerque, New Mexico; Baltimore, Maryland; and Chicago, Illinois. The agency also has aggressive plans to open 14 new hearing offices and 4 satellite offices by the end of next year with the first of those new offices opening in Anchorage, Alaska in the next few months.

In addition to reducing the number of cases awaiting a hearing decision, the agency again targeted the oldest and most difficult cases for processing. Beginning in FY 2007 with 65,000 cases that were 1,000 days old or older, the agency has continually attacked its “aged” cases. This year, the agency targeted 166,838 cases that were 850 days or older and virtually eliminated this entire universe of cases. The goal in FY 2010 has been reset again to eliminate cases over 825 days old.

Social Security’s ALJs also continue to increase their productivity. The agency averaged 570 dispositions (2.28 per day) per available ALJ in FY 2009, an upward trend that has continued for the last three years.