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COMMITTEE ON WAYS AND MEANS

DAN ROSTENKOWSKI, Illinois, Chairman

SAM M. GIBBONS, Florida
J.J. PICKLE, Texas

CHARLES B. RANGEL, New York
FORTNEY PETE STARK, California
ANDY JACOBS, JR., Indiana
HAROLD E. FORD, Tennessee
ED JENKINS, Georgia

THOMAS J. DOWNEY, New York

FRANK J. GUARINI, New Jersey
MARTY RUSSO, Illinois
DON J. PEASE, Ohio

ROBERT T. MATSUI, California
BERYL ANTHONY, JR., Arkansas
BYRON L. DORGAN, North Dakota
BARBARA B. KENNELLY, Connecticut
BRIAN J. DONNELLY, Massachusetts
WILLIAM J. COYNE, Pennsylvania
MICHAEL A. ANDREWS, Texas
SANDER M. LEVIN, Michigan
JIM MOODY, Wisconsin

BENJAMIN L. CARDIN, Maryland

JIM MCDERMOTT, Washington

BILL ARCHER, Texas

GUY VANDER JAGT, Michigan
PHILIP M. CRANE, Illinois

DICK SCHULZE, Pennsylvania

BILL GRADISON, Ohio

BILL THOMAS, California

RAYMOND J. MCGRATH, New York ROD CHANDLER, Washington

E. CLAY SHAW, JR., Florida

DON SUNDQUIST, Tennessee
NANCY L. JOHNSON, Connecticut
JIM BUNNING, Kentucky
FRED GRANDY, Iowa

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National Committee To Preserve Social Security and Medicare, Max Richt-
man on behalf of Martha McSteen...

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Sweeney, Eileen P., National Senior Citizens Law Center
Zelenske, Ethel, Legal Aid Bureau, Inc....

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SOCIAL SECURITY ADMINISTRATION DISABILITY DETERMINATION AND APPEALS PROCESS

THURSDAY, MAY 2, 1991

HOUSE OF REPRESENTATIVES,

COMMITTEE ON WAYS AND MEANS,

SUBCOMMITTEE ON SOCIAL SECURITY,

Washington, D.C.

The subcommittee met, pursuant to notice, at 10:30 a.m., in room B-318, Rayburn House Office Building, Hon. Andy Jacobs, Jr. (chairman of the subcommittee) presiding.

[The press releases announcing the hearing follow:]

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SUBCOMMITTEE ON SOCIAL SECURITY, COMMITTEE ON WAYS AND MEANS,
U.S. HOUSE OF REPRESENTATIVES, ANNOUNCES A HEARING ON THE
SOCIAL SECURITY ADMINISTRATION (SSA)
DISABILITY DETERMINATION AND APPEALS PROCESS

Andy Jacobs, Jr. (D., Ind.), Chairman, Subcommittee on Social Security, Committee on Ways and Means, U.S. House of Representatives, announced today that the Subcommittee will hold a hearing on the Social Security Administration (SSA) disability determination and appeals process. The hearing is part of the Committee on Ways and Means' major oversight initiative for the 102nd Congress, which examines the efficiency and effectiveness of programs within the Committee's jurisdiction. This hearing will focus on means of improving the accuracy of SSA decisions on disability claims and streamlining agency appeal procedures. It will be held on Thursday, May 2, 1991, beginning at 10:00 a.m., in room B-318 of Rayburn House Office Building.

BACKGROUND

When an individual applies for social security disability benefits, his application is evaluated by a State Disability Determination Service (DDS). Funded by SSA, these agencies collect medical evidence of the claimant's condition and assess his potential to work. When a DDS denies an application, the claimant may apply for so-called reconsideration - a review of his file by another DDS examiner. If this review confirms SSA's original decision, the claimant may then request a hearing before an administrative law judge (ALJ).

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In recent years, these procedures have been criticized on two counts, the accuracy of decisions and extended delays. As evidence of inaccuracy, critics cite ALJS' high rate of reversal of SSA decisions. While only about 15 percent of initial decisions appealed are reversed at the reconsideration level, the ALJ reversal rate for decisions appealed from reconsideration has consistently exceeded 50 percent over the past decade; and in 1990, it reached nearly two-thirds, or 63 percent. The second problem, long delays, is reflected in SSA's statistics on claims processing. These statistics show that it currently takes more than three months for SSA to reach an initial decision on a typical disability case; that another two months is required for reconsideration; and that disabled claimants must wait on average a full seven months for an ALJ decision.

To address these problems, Chairman Jacobs recently introduced H.R. 1799, the Disability Appeals Process Reform Act of 1991. H.R. 1799 would: (1) require SSA to provide initial face-to-face interviews for all applicants for disability benefits; (2) eliminate reconsideration; and (3) direct SSA to develop more comprehensive initial evidence of the claimant's condition. This information would include: relevant physician, hospital and clinic records; detailed statements from claimants themselves; reports by non-medical professionals such as physical therapists; and statements by claimants' families and friends.

FOCUS OF THE HEARING

The hearing will seek to identify factors that account for inaccuracy and delays in SSA decision making and to identify measures that would address both these problems. Witnesses are invited to give specific attention to the following issues:

Why are SSA disability determinations so frequently reversed on
appeal? Why is the reversal rate rising?

* Can SSA decision making be improved by expanding the information

on which decisions are based? If so, what additional
information should be gathered? Specifically, would a
face-to-face interview before an initial decision improve the
quality of decisions?

* What can be done to improve the timeliness of SSA decisions?
Can the process be shortened or streamlined while maintaining
the rights of claimants? If so, how?

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