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Issa Rips Acting SSA Commissioner Over Failure to Fight Disability Fraud

SSA judges rubber-stamped $400 billion in benefits

House Oversight Committee Chairman Rep. Darrell Issa, (R., Calif.) / AP
July 3, 2014

House Committee on Oversight and Government Reform Chairman Darrell Issa (R., Calif.) sent a scathing letter to Acting Social Security Administrator (SSA) Carolyn Colvin late Tuesday, questioning her commitment to stopping widespread abuse within federal disability programs.

The committee released a report last month that found federal judges have rubber-stamped nearly $400 billion in benefit claims in recent years. The report highlighted "red-flag" administrative law judges (ALJs) who approve more than 75 percent of disability claims that reach their courtrooms. Only claims that have been denied twice ever reach an ALJ.

The report attributed abuse in the system to a lack of oversight by the SSA, and agency-wide "production goals" that mandated ALJs hear more cases than they could handle.

"We are concerned that your testimony indicated a lack of appreciation of the substantial problem created when ALJs essentially approve every claimant before them, regardless of whether they are disabled or unable to work, and that you lack the commitment to fundamental program reform," read the letter, which is signed by Issa, Reps. James Lankford (R., Okla.), and Jim Jordan (R., Ohio).

Colvin’s testimony at a hearing on June 11 "raised serious questions about the agency’s willingness to confront the problems of rapidly rising disability rolls," the letter said. "Although at the hearing you indicated that you would rather not focus on the past, it is important that the agency understand the full scope of the problem."

"In particular, since the agency allowed hundreds of ALJs to rubber-stamp applicants onto disability programs over the past decade, the nation now has an enormous number of people who are inappropriately on disability programs," the letter said.

The letter noted four judges in particular who approve more than 90 percent of the appeals they hear for disability benefits. ALJs Charles Bridges, Harry Taylor, James Burke, and Gerald Krafsur, who testified before the committee last month, are responsible for awarding $11 billion in lifetime disability benefits.

"ALJs that refuse to follow the law and essentially rubber stamp claimants onto the federal disability rolls have abused the public trust, harmed the nation’s truly disabled and therefore should be fired," the letter said.

Issa said it is "unacceptable" that the agency refused to take disciplinary action against Krafsur, Bridges, Taylor, and Burke.

The SSA has reviewed the work of the judges, finding consistent problems with their decisions. For example, Bridges’ review this year found that 60 percent of a sample of decisions reviewed were not substantiated by evidence.

Krafsur, Bridges, and Taylor placed more than 4,300 additional people onto federal disability rolls between October 2011 and May 2014.

The letter also noted that the SSA currently allows ALJs to decide a full load of cases even after their review reveals that their decisions "systemically disregard SSA policy." 

"The decision to allow ALJs to continue deciding cases after a problematic review is an abdication of your duty to uphold the agency and protect program funding for the truly disabled," the letter said.

Colvin testified that she has the authority to place Bridges and Taylor on administrative leave, but said, "I think there has to be considerable thought and there are actions pending."

Taylor approves almost 94 percent of the disability claims that reach his courtroom and has been accused of sleeping during hearings he has presided over. Bridges, according to the report, brags about his office’s high amount of dispositions, and that he "awarded a trophy each month to the ALJ with the highest dispositions."

"Your failure to take action in these clear-cut cases raises serious questions about your willingness to take necessary steps to reduce the rampant mismanagement, waste, and misspending of federal disability programs," the letter said. "Moreover, the small number of cases that you have filed with the Merit Systems Protection Board about problematic ALJs raises serious questions about the agency’s commitment to hold blatantly, failing employees accountable."

The letter also questioned whether Colvin is prepared to tackle the problem, since she has not been prepared for her testimonies before Congress.

"Despite having over two weeks’ notice for your appearance before the committee, and a postponement of your appearance to accommodate your personal vacation, we were troubled by your level of preparation to engage in a thoughtful discussion about the serious challenges with your agency’s management of federal disability programs and its ALJs," the letter said.

During her testimony, Colvin also admitted to not having seen the 60 Minutes report on a widespread disability fraud scheme involving an ALJ and a conman lawyer, and stated the wrong amount of beneficiaries receiving federal disability.

Colvin could also not name one area where she could act to cut waste, fraud, and abuse in the disability system, and instead asked for more money.

"Your only suggestion was to express support for the recommendation of Rep. Gerald Connolly that Congress reallocate the payroll tax in order to fund the disability trust fund after 2016, when it will be bankrupt," Issa wrote.

The letter concluded by asking for all documents related to actions the SSA has taken regarding reviews of ALJs since 2011.