The New Leaf: A Newsletter from The Hawkins Center

December 1994 • No. 1, Article 3


Reengineering: Social Security's Plan for a New Disability Claim Process

The Social Security Administration (SSA) has finally publicly recognized what we have all known for years - that the disability claims process is too complex and inefficient to achieve its basic purpose of delivering disability benefits to qualified applicants in a reasonable length of time. Roughly one fourth of all persons eventually awarded benefits have their claims denied twice, must appeal each time and eventually appear at a hearing before a Social Security judge. This process typically takes two years and results in tremendous hardship to the applicant who should have been receiving benefits all along.

Early in 1994, SSA began a comprehensive review of its disability claims process with the goal of identifying and recommending changes in the process to make it more "user-friendly", drastically reduce the time required to adjudicate claims and restore public confidence in Social Security. This program is commonly known as "reengineering", a term borrowed from businesses in the private sector; it refers to a fundamental and radical redesign of a business process, from start to finish, so that it becomes more efficient and, as a result, significantly improves service to the organization's customers.

SSA's reengineering project, officially titled "Plan for a New Disability Claim Process", was released in September. It is far-reaching in its changes; it proposes wholesale restructuring of SSA's processing of claims and of the legal standards for finding disability. Implementation was scheduled to begin in October with full implementation intended to be in effect by fiscal year 2001.

Changes proposed in the Plan include expanding the means by which disability applications may be filed, for example by phone or computer; consolidating responsibility for most administrative and review functions in a single SSA employee called the claims manager (at present five to 10 people may be involved); streamlining the manner and type of medical evidence collected and involving, when possible, the claimant in the collection of evidence; and training all adjudicators to apply consistent standards in reaching disability determinations. Currently, it has been acknowledged that SSA claims evaluators, who determine disability at the application stage and the first stage of appeal, apply different standards than do judges who determine disability after a hearing.

A significant change called for in the reengineering plan is the elimination the first level of appeal, which is called the reconsideration stage. This change is enthusiastically supported by most advocates. Under the new system, applicants denied after the initial application will skip reconsideration and be entitled to a hearing before a Social Security judge - the majority of claims are granted at the hearing stage. Since 86% of all claims are denied at reconsideration, eliminating this extra appeal stage will remove one time consuming roadblock to disability entitlement.

Most alarming to disability applicants and advocates are proposed changes to the standards by which disability itself is determined. SSA calls it a "simplified decision methodology"; in reality it is a system of determining disability which may produce quicker awards of benefits to obviously disabled applicants but for the vast majority of applicants will make proving disability a much more difficult task. Those hardest hit will be applicants over 50 years old. Fortunately, SSA has received enough negative response to this proposed change to decide it must conduct further "extensive research and development" that will require at least five-to-seven years before implementation is even considered.

SSA deserves credit for recognizing that change is needed in the disability application process and for trying to improve the quality of the service it provides. However, most disability attorneys and advocacy groups, including The Hawkins Center, are concerned that the end result of reengineering will be an increase in denials of legitimate disability claims. SSA asserts that it wants to work in partnership with all interested groups and welcome feedback and comments about the further development and implementation of reengineering. We hope that SSA will honor this commitment, but in the meantime will maintain a healthy skepticism as we continue to monitor the forthcoming changes.

If you have questions or comments about the reengineering project please feel free to write us. If you would like a copy of the reengineering plan, call 1-410-966-8255, or write to SSA, Disability Process Reengineering Project, P.O. Box 17052, Baltimore, MD 21235 and ask for SSA Publication Number 01-005, "Plan for a New Disability Claim Process."


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The Hawkins Center
A Non-Profit Agency Providing Legal and Support Services to People with Disabilities
101 Broadway, Suite 1, Richmond, CA 94804, Phone: (510)232-6611, Fax: (510)232-2271
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