'Did I Hear You Correctly?': Mike Crapo Questions Witness On High-Risk Social Security Programs

3 months ago

At a Senate Finance Committee hearing last week, Sen. Mike Crapo (R-ID) spoke about work and social security disability benefits.

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Transcript

00:00Dr. Gotland, I'd like to go to you first.

00:03The Social Security Administration's disability programs

00:06remain on GAO's high-risk list,

00:10due in part to SSA's continued use

00:12of outdated occupational data to make disability decisions.

00:16If I heard your testimony correctly,

00:17I think you said they've already spent

00:19something like $100 million to study this and to update it,

00:24but they're not using that information.

00:26Did I hear you correctly?

00:28Yes, that is correct.

00:30I believe the amount is higher.

00:33It's over $250 million.

00:35$250 million, and the information is not being utilized?

00:41As far as we know, yes, it is not being utilized.

00:44So, explain a little bit about why

00:48the Social Security Administration's use

00:51of this outdated occupational data

00:53is a contributing factor to its disability programs

00:57being on GAO's high-risk list.

01:00Thank you for that question.

01:02So, we have, on our high-risk list,

01:05there are two main areas.

01:06One for SSA is managing its backlogs,

01:10and one is modernizing its eligibility criteria.

01:14And the eligibility criteria are absolutely essential

01:18in deciding disability awards.

01:22So, these are make-or-break decisions

01:24for people who are needing benefits.

01:27The occupational data, in particular,

01:30are something that dates back right now to the 1990s,

01:35and even earlier to the 1970s.

01:38The Washington Post article, for example,

01:40highlighted one example of a vocation

01:43that still continues to be used,

01:45the pneumatic tube operator.

01:48And we thought, oh, maybe that would be something

01:50that wasn't realistic, that didn't really get invoked.

01:55But in fact, we just identified, in preparing for this,

01:57two recent federal court cases

02:00where pneumatic tube operator was cited

02:04as a viable occupation for someone

02:07applying for disabilities,

02:09and part of the basis for their denial.

02:12So, this is something that is of grave concern

02:16to the individuals who are applying for benefits

02:20who are unfairly denied.

02:21It is also costing Social Security Administration

02:25administrative costs in processing these cases,

02:29and in addition, it's costing the federal courts

02:33time and resources in processing those appeals.

02:37Well, thank you.

02:38It sounds to me like if they were to actually

02:40effectively utilize the data that they have spent

02:43so much money to develop,

02:46that they could actually get better results

02:49in getting benefits to recipients

02:51and save money in the process.

02:53Is that correct?

02:55Yes, that is correct.

02:57Well, thank you.

02:58And Ms. Wilski, to shift topics here for just a moment,

03:04the Social Security Administration recently finalized

03:07a rule that they estimate will save about a billion dollars

03:10in administrative costs in exchange for an additional

03:14$19.7 billion in mandatory spending

03:18for Social Security disability insurance benefits

03:21and supplemental security income payments on net

03:25over the next 10 years.

03:26The question I have is when the SSA is considering

03:30a policy change to one of its programs,

03:33how does the agency evaluate trade-offs

03:35between the administrative savings

03:38and the increases in mandatory spending?

03:43Thank you for the question.

03:45I'm not familiar with the policy that you're talking about,

03:49but I think in general, we do tend to look at

03:52how the policies would affect our beneficiaries,

03:55how the policies would affect our ability

03:57to implement the program,

03:58as well as the cost to the federal government.

04:00I'd be happy to take that back for a fuller response.

04:03Well, thank you.

04:04I think you just answered this,

04:05but I just want to ask it specifically.

04:07Do you agree that the Social Security Administration

04:10has a stewardship responsibility to taxpayers?

04:15And also, how is the almost 20 to one ratio,

04:19I guess you said you weren't familiar

04:20with that specific rule,

04:22but do you believe that the Social Security Administration

04:25in adopting these rules

04:27needs to have a stewardship responsibility

04:30not only to recipients, but also to the taxpayers?

04:34Yes, that's correct.

04:35All right, thank you, Mr. Chairman.

'Did I Hear You Correctly?': Mike Crapo Questions Witness On High-Risk Social Security Programs

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