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United States General Accounting Office GAO Report to the Chairman, Committee on Finance, U.S. Senate November 1993 SOCIAL SECURITY Increasing Number of Disability Claims and Deteriorating Service UNITED STATES ACCOUNTING OFFICE GENERAL GAO/HRD-94-11 GAO United States General Accounting Office Washington, D.C. 20548 Human Resources Division B-249865 November 10, 1993 The Honorable Daniel Patrick Moynihan Chairman, Committee on Finance United States Senate Dear Mr. Chairman: This report, prepared at the request of the former Chairman, examines the disability programs of the Social Security Administration (SSA), which are jointly administered with state agencies called state disability determination services. The request was prompted by a significant increase in benefit claims, which in turn has caused an unprecedented increase in pending claims and processing delays. We examined the operating conditions at the states and SSA actions taken and planned to improve service. We are recommending that the Secretary of Health and Human Services (HHS) develop a plan to (1) reduce the backlog of disability benefit claims and (2) resume the performance of continuing disability reviews to the level necessary to comply with Social Security Act provisions. As arranged with your office, we are sending copies of this report today to interested congressional committees, the Secretary of HHS, the Commissioner of SSA, and other interested parties and will make copies available to others on request. Please contact me at (202) 512-7215 if you or your staff have any questions concerning this report. Other major contributors to this report are listed in appendix V. Sincerely, Jane L.Ross Jane L. Ross Associate Director Income Security Issues ashington Executive Summary In recent years, disability claims for benefits under Social Security's Disability Insurance (DI) and Supplemental Security Income (SSI) programs have increased significantly and at an unprecedented rate. Much of the increase has occurred in the SSI program and was caused by poor economic conditions, changes in program rules, and other factors. In turn, the surge in claims has created a significant number of pending claims and lengthy processing times at state agencies called disability determination services (DDSS). These organizations determine whether claimants are disabled according to program rules. Because of these events, the former Chairman of the Senate Committee on Finance requested that GAO assess (1) the operating conditions at the DDSS and (2) the actions taken and planned by the Social Security Administration (SSA) to reduce the number of pending claims. In addressing these issues, GAO analyzed DDS performance data and various SSA studies and reports. GAO also conducted a nationwide survey of state DDS administrators about the operational problems confronting them. The DI program provides income replacement for disabled persons who Background have enough work experience to be insured under Social Security. The SSI program provides assistance to the aged, blind, and disabled whose income and resources are below a specified amount, regardless of insure status under Social Security. In fiscal year 1992, the DI program paid about $31 billion to 3.5 million disabled workers and 1.4 million of their dependents. The SSI program pa $21 billion to about 5.5 million recipients in fiscal year 1992, 4.0 million a whom were disabled. SSA administers both programs with the help of the DDSS, which make the initial decisions on whether the claimants meet the programs' definition disability. A claimant initially denied benefits can appeal the decision to several levels of review. SSA and the DDSS also periodically review the continued eligibility of program participants to determine if they meet ti disability criteria for the programs. These reviews, which are required b) the Social Security Act, are called continuing disability reviews (CDRS). Results in Brief Claim backlogs and processing times for the DI and SSI programs reache an all-time high in fiscal year 1992. SSA and the DDSS have not been able keep up with the high rate of claims submitted for benefits, which has Page 2 GAO/HRD-94-11 Service and SSA Disability Pro Executive Summary continued into fiscal year 1993. From fiscal year 1990 to fiscal year 1992, processing times increased nearly 50 percent, and some states have taken more than 5 months to process a claim. In fiscal year 1992, DDSS in the more populous states generally tended to be the poorest performers, according to a number of key program performance indicators. SSA has undertaken numerous short-term initiatives to keep up with claims-most significantly, the funding of DDS overtime. The high workloads of the last several years have stressed many of the DDSS considerably. Staff are overworked according to the DDS administrators, and overtime use is at an all-time high. SSA also diverted staff resources from doing CDRS to processing initial claims. As a result, many ineligible individuals have received and are continuing to receive program benefits, which, according to SSA, will cost the program at least $1.4 billion. These short-term initiatives resulted in a relatively small reduction in pending claims and processing times. SSA also has established a number of long-term initiatives to improve its disability programs; however, exactly how, when, and to what extent these initiatives will improve service is not known at this point. Consequently, the Secretary of Health and Human Services needs to develop a plan to reduce the backlog of benefit claims in SSA'S disability programs and resume the performance of mandated CDRS. Principal Findings DDSs-Organizations Service to beneficiaries has deteriorated significantly in recent years. Under Stress During most of the 1980s, the average claim processing time was about 75 days, but, in the last 3 years, the time has increased significantly. For fiscal year 1992, the average processing time was 112 days. Further, processing times involving 10 of the largest DDSS-which account for 60 percent of all pending claims-averaged 127 days. GAO'S survey of DDS administrators disclosed numerous other indicators of organizational stress in the DDSS during fiscal year 1992. For example, according to the administrators, the majority (85 percent) of DDSS are understaffed; Page 3 GAO/HRD-94-11 Service and SSA Disability Programs Executive Summary funding in key functional areas-such as, automated data processing, training, and the purchase of medical examinations-is often inadequate; supervisors and quality assurance personnel are often detailed to process claims rather than performing their normal duties; many employees may not be willing to continue working overtime to try to keep up with incoming claim receipts; in fiscal year 1992, most DDSS staged claims (that is, set claims aside and did not assign them to staff because of their high workloads) whereas only five DDSS staged claims in 1990; and employee morale is not good and is declining primarily because of workload pressures. Limited Success in As early as fiscal year 1990, to improve service, SSA started reducing the Reducing the Number of number of CDRS to be done by the states and diverting these resources to Pending Claims claim processing. Reducing the number of CDRS has resulted in significant payments to individuals ineligible for benefits. According to SSA, the net cost of not performing required CDRS for the DI program in fiscal years 199 through 1993 is $1.4 billion, projected through 1997. In January 1992, SSA initiated a program to reduce the number of pending claims. SSA took initiatives to increase the productivity of the DDSS, such as streamlining certain claim processing requirements and transferring workloads between DDSS and SSA facilities to help process claims. Also, since the start of the program through September 1993, the DDSS made extensive use of overtime to improve service. Although DDS productivity has increased significantly since early 1992, the reduction in pending initial claims was modest, from a high of 638,000 in February 1992 to 555,000 through September 1993-a reduction of 83,000 claims or 13 percent below the February peak. Also, in fiscal year 1993, processing times were reduced about 10 days. Long-Range Plans to For the long term, SSA has undertaken several initiatives, most notably th Improve Service development of a strategic plan to guide the agency as it moves toward year 2000. As part of its plan, five strategic priorities have been established, two of which specifically address improvements in the agency's disability programs. The plan covers a wide variety of initiative to improve service and increase SSA and DDS productivity, including the integration of state-of-the-art computer technology into all of SSA and DO Page 4 GAO/HRD-94-11 Service and SSA Disability Prof Executive Summary operations. Exactly how, when, and to what extent this planning and these initiatives will pay off, however, is not known now. Recommendations Because of the limited progress achieved by SSA and the uncertainties associated with its long-range planning, GAO recommends that the Secretary of Health and Human Services develop a plan to (1) reduce the backlog of disability benefit claims made in SSA'S disability programs and (2) assure the performance of continuing disability reviews to the level necessary to comply with Social Security Act provisions. The plan should be submitted to the Congress and include a request for additional staffing and funding, if deemed necessary. Agency Comments GAO requested written comments from the Department of Health and Human Services, but none was provided. However, GAO did discuss its basic findings with agency officials and considered their comments in finalizing the report. Page 5 GAO/HRD-94-11 Service and SSA Disability Programs Contents Executive Summary 2 Chapter 1 8 Introduction Background 8 Rising DDS Workloads 10 Objectives, Scope, and Methodology 13 Chapter 2 15 High Workloads Administrators Report That DDSs Are Under Stress 15 Decisional Accuracy May Be Adversely Affected by Workload Create Problems at 18 Pressures DDSs Performance of DDSs Varies 18 Chapter 3 21 SSA's Actions and SSA Actions Reduce Pending Claims Somewhat 21 Long-Term Initiatives to Improve Service 25 Plans to Improve Conclusions 26 Service Recommendation to the Secretary of Health and Human Services 27 Appendixes Appendix I: Questionnaire for DDS Administrators 28 Appendix II: Selected DDS Performance Data for Fiscal Year 1992 47 Appendix III: Modified Claim Processing Procedures Approved 51 by SSA Commissioner Appendix IV: Examples of SSA's Strategic Planning Initiatives 53 Appendix V: Major Contributors to This Report 55 Related GAO Products 56 Table Table 2.1: Selected DDS Performance Data for Initial Claims, 19 Fiscal Year 1992 Figures Figure 1.1: DDS Work-Years, Fiscal years 1980 to 1993 9 Figure 1.2: Initial DI and SSI Claim Receipts 10 Figure 1.3: Initial DI and SSI Pending Claims 12 Figure 1.4: Initial Claim Processing Times 13 Figure 2.1: DDS Performance by Defined Category, Fiscal Year 20 1992 Figure 3.1: Initial DI and SSI Pending Claims by Month 24 Page 6 GAO/HRD-94-11 Service and SSA Disability Programs Contents Abbreviations ALJ administrative law judge CDR continuing disability review DDS disability determination service DI Disability Insurance HHS Department of Health and Human Services PPWY production per work year SSA Social Security Administration SSI Supplemental Security Income WWOH weeks work on hand Page 7 GAO/HRD-94-11 Service and SSA Disability Programs Chapter 1 Introduction In the last several years, the disability programs administered by the Social Security Administration (SSA) have experienced unprecedented growth in the number of claims, which has created large numbers of pending claims and high claim processing times. This report addresses the operating conditions of the programs and the action SSA has taken or plans to take to improve service. Background SSA administers two disability programs that have the same eligibility criteria. One is the Disability Insurance (DI) program, and the other is the needs-based Supplemental Security Income (SSI) program. For both DI and SSI, state agencies, called disability determination services (DDSS), determine whether applicants meet established criteria for disability.¹ In 1992, an average of 4.9 million persons received about $31 billion in benefit payments under the DI program. Under the SSI program, benefit payments amounted to about $21 billion in fiscal year 1992, a portion of which includes benefits for the aged. Of the 5.5 million people receiving SSI benefits at the end of fiscal year 1992, 27 percent qualified because of age, and the remainder qualified for reasons of disability. Individuals seeking DI or SSI benefits on the basis of disability must file an application with an SSA field office. A key part of the application is the disability report, which includes a description of the applicant's disability and a medical history. The SSA field office then forwards an application package to a state DDS, which in turn assigns it to one of its disability examiners. The examiner reviews the report for accuracy and completeness and sends letters to medical providers requesting documentation of the applicant's disability. If necessary, the examiner will also set up a consultative medical examination for the applicant to document the disabling conditions. Upon receipt of all medical evidence, the examiner, in consultation with a DDS physician, determines whether the applicant is disabled according to program rules. Applicants who are denied benefits have several appeal levels available. The first level is a reconsideration of the initial decision, which is administered by a DDS. The second is a face-to-face hearing given by a federal administrative law judge (ALJ). The third level is SSA'S Appeals Council, and the last recourse for denied applicants is the federal court system. 'DDSs number 54, one in each state, the District of Columbia, Puerto Rico, and Guam. South Carolina also has a separate agency for the blind. Page 8 GAO/HRD-94-11 Service and SSA Disability Programs Chapter 1 Introduction Most DDS resources (nearly 80 percent in fiscal year 1992) were devoted to the processing of initial claims, with most of the remainder used for reconsiderations and continuing disability reviews (CDRS). The latter are periodic reviews to determine whether an individual continues to meet program criteria for disability. For fiscal year 1992, the operating budget for the DDSS was $1.034 billion, involving 13,225 work-years. Figure 1.1 shows the work-years devoted to DDS operations since 1980. Figure 1.1: DDS Work-Years, Fiscal Years 1980 to 1993 Work-Years 13302 13225 13298 13074 12887 12924 12513 12502 11963 11738 11634 11 11177 11 10794 10000 9701 ) 9000 1980 1981 1982 1983 1984 1985 1986 1987 1988 1989 1990 1991 1992 1993 Years As shown in figure 1.1, DDS staffing increased steadily from 1980 to 1986, reaching a high point in that year. Beginning in 1987, DDS staffing decreased steadily through 1990, reaching a 9-year low in that year. After 1990, staffing levels increased. The DDS cuts in the late 1980s generally paralleled significant reductions in SSA staff. From fiscal year 1985 to 1991, SSA staff was cut by about 21 percent or 17,000 positions. Page 9 GAO/HRD-94-11 Service and SSA Disability Programs Chapter 1 Introduction Rising DDS In recent years, the number of disability benefit applications has risen Workloads dramatically, as shown in figure 1.2. Figure 1.2: Initial DI and SSI Claim Receipts ) Number of Claims (thousands) 2564 2400 2393 ) 2000 2015 1800 1746 1737 1644 ) 1585 1594 1589 1526 1481 1435 1400 ) ) 82 83 84 85 66 87 88 89 90 91 92 93 Fiscal Year From fiscal years 1982 through 1989, the DI and SSI programs combined averaged 1,575,000 initial claims per year, with total claims received in most years ranging between 1.4 and 1.6 million. In only 2 years did receipts exceed 1.6 million-1.75 million in 1986 and 1.64 million in 1987. From 1990 through 1992, however, the number of receipts increased 9, 16, and 19 percent, respectively, with 1992 receipts amounting to 2.4 million. The 1992 level represents about a 50-percent increase over the average number of applications received during the last 8 years of the 1980s. Also, the increase in claims started when DDS staffing was the lowest in 9 years. For fiscal year 1993, claim receipts also increased, up about 7 percent from the 1992 level. For fiscal year 1994, SSA expects the increase in claims to continue. Page 10 GAO/HRD-94-11 Service and SSA Disability Programs Chapter 1 Introduction The largest increase in claims occurred in the SSI program. Although the precise reasons for the increase are not known, the poor performance of the economy, an increase in children's claims resulting from a Supreme Court decision,² changes in program rules, and increased SSI outreach are among the reasons frequently cited by SSA and others.³ In fiscal year 1992, SSI claims accounted for 47 percent of the 2.4 million disability claims received, while DI and concurrent claims (both SSI and DI) accounted for 28 and 25 percent, respectively. The increase in applications has resulted in a larger number of pending initial claims at the DDSS and increased claim processing times. From 1982 through 1989, the number of pending initial claims at the DDSS averaged around 266,000. In 1991 through 1993, the number of pending initial claims more than doubled, averaging about 550,000. Similarly, processing times during the mid-to-late 1980s averaged around 75 days but increased dramatically in recent years, averaging 112 days in 1992.4 This time represents nearly a 50-percent increase over the processing times achieved during the 1980s and sharply contrasts until SSA'S established processing time goal of 60 days. In fiscal year 1993, processing times were reduced about 10 days. Figures 1.3 and 1.4 illustrate these trends. 'On February 20, 1990, the U.S. Supreme Court ruled that regulations for evaluating impairments for children under SSI were inconsistent with the standard in the Social Security Act. The act provides that a child will be considered disabled if he or she has an impairment of comparable severity to one that would render an adult disabled. "We are currently reviewing the causes for the increase in disability claims and will issue the results in late 1993. "Processing times in this report are measured from the date of application to DDS clearance. Most time involves DDS processing. Page 11 GAO/HRD-94-11 Service and SSA Disability Programs Chapter 1 Introduction Figure 1.3: Initial DI and SSI Pending Claims Number of Claims (thousands) 577 555 523 400 385 316 296 307 275 263 235 228 206 100 0 82 B 84 85 86 87 88 89 90 91 92 93 Fiscal Year Page 12 GAO/HRD-94-11 Service and SSA Disability Programs Chapter 1 Introduction Figure 1.4: Initial Claim Processing Times 125 Number of Days 120 111 104 100 = : = 88 61 B 78 77 77 78 79 75 74 71 74 89 70 70 65 59 50 25 0 0 0 82 83 84 85 86 87 : : 90 91 92 93 Year DI SSI Note: SSI processing times generally are longer than those of DI claims. For the most part, this is attributed to the longer claim development time required because SSI applicants tend to have less medical documentation to support their claims. Also, DI processing times were not available for 1982 and 1983; they were measured for the first time in 1984. The increase in disability claims also directly impacts other DDS workloads such as CDRS and reconsiderations. Further, disability claims directly impact other SSA components such as SSA field offices-which take the initial claims-and SSA'S Office of Hearings and Appeals. Regarding the latter, the number of appeals to ALJS have increased significantly in recent years. Cases pending before ALJS increased 44 percent, from 142,000 at the end of fiscal year 1989 to 205,000 by the end of fiscal year 1992. Objectives, Scope, The objectives of our review were to examine the operating conditions at and Methodology the DDSS during fiscal year 1992 and SSA actions taken and planned to Page 18 GAO/HRD-94-11 Service and SSA Disability Programs Chapter 1 Introduction reduce the number of disability pending claims. We based our review on analyses of routinely generated SSA/DDS performance data, which included claim receipts, pending claims, productivity, staffing levels, and processing times. We also visited six DDSS and discussed with the administrators the operational problems they were experiencing because of the high claims workload. To obtain a more broadly based view of DDS operations and problems, we sent a nationwide questionnaire (see app. I) to DDS administrators. Fifty-two of the 53 DDSS we surveyed responded to the questionnaire.⁶ In reviewing SSA'S actions, we examined its plans, as well as reports and studies on their impact. We also obtained DDS views on the actions taken. Concerning future plans, we examined SSA'S strategic planning process to gain an understanding of the activities planned and their potential impact on productivity and service quality. We requested written comments on this report from the Department of Health and Human Services, but none was provided. However, we did discuss our basic findings with agency officials and considered their comments in finalizing this report. We conducted our review between June 1992 and June 1993 in accordance with generally accepted government auditing standards. We did not survey the South Carolina Commission for the Blind, and Guam did not respond to our questionnaire. Page 14 GAO/HRD-94-11 Service and SSA Disability Programs Chapter 2 High Workloads Create Problems at DDSs The DDS administrators we surveyed generally painted a negative picture of conditions at their state agencies. Overall, the DDSS can be characterized as organizations under a considerable amount of stress. Moreover, many administrators believed that workload pressures are adversely affecting the accuracy of claim decisions. While processing times and the number of pending claims in general are very high, the performance of individual DDSS varies widely. In fiscal year 1992, a group of 10 DDSS performed at a level much lower than the national average for all DDSS, and the performance of a group of 23 DDSS was much better than the performance for the program overall. Administrators Report The results of our survey of DDS administrators indicate that many DDSS have significant staff shortages, and funding in key operational areas is That DDSs Are Under insufficient. This situation in turn is contributing to several other DDS Stress problems, including declining morale and a reduction in the extent and quality of training. The vast majority of DDS administrators said that their agencies are understaffed, and a third characterized the understaffing as significant. Understaffing was particularly apparent in key DDS positions. On average, the administrators said that the maximum claim caseload per disability examiner should be about 100 cases, while the actual average caseload during fiscal year 1992 was 134. Twenty-nine administrators also said they had too few medical consultants. Compounding this shortage, about a third of the administrators said that they had a great deal of difficulty in recruiting these consultants. The number of clerical staff and disability examiner supervisors, however, generally did not appear to be a problem. Many administrators said that their DDSS were underfunded in key areas. For example, more than half of them said that funding for automated data processing (for example, computers and printers) was less than or considerably less than adequate during fiscal year 1992. About a third of the administrators said that funding for training and equipment was too low, and about a fourth said that funding for medical examinations was not adequate. Employees Are Not Certain DDS staff spent time processing claims instead of performing their Performing Their Normal normal duties. For example, seven administrators said that staff who Duties normally perform quality assurance functions spent between 41 and Page 15 GAO/HRD-94-11 Service and SSA Disability Programs Chapter 2 High Workloads Create Problems at DDSe 60 percent of their time processing claims; six said that their quality assurance staff spent 81 to 100 percent of their time in this manner. Many administrators (25) also reported that disability examiner supervisors spent no more than 20 percent of their time on claims processing rather than supervising, and 12 said that their supervisors spent 21 to 40 percent of their time in this manner. Quality of Training Could In fiscal year 1992, the administrators reported that disability examiners Be Improved received an average of 24 hours of post-entry level training. In commenting on the extent to which the training kept examiners current with policy and procedural changes, 23 administrators said that it did to a great or very great extent. The other 28 administrators said that the training was not as good; 20 said the training kept the examiners current to a moderate extent; 7 said to some extent, and one said to little or no extent. Administrators cited high workload most frequently as the principal reason for the less than adequate training; because of the current workload pressure, training has been deferred. Comparing the training to that provided in 1989, about half said the quality was about the same; 7 said it was somewhat better or much better, and 17 said it was somewhat worse or much worse. Claims Are Being Set Aside In situations where DDSS cannot keep up with incoming claim receipts, claims often are "staged;" that is, they are set aside until a disability examiner is free to process the claim. The stated rationale for this practice is that disability examiners can generally manage a caseload of 100 claims, and beyond this, the caseload becomes unmanageable. In fiscal years 1989 and 1990, the number of DDSS that staged claims were two and five, respectively. In fiscal year 1991, the number increased to 26 and in 1992, to 33. Of those that staged claims in 1992, the average percent of all-claim receipts staged was 41. Further, the claims were staged an average of 26 days until they were assigned to an examiner. Although the number of DDSS that staged claims increased significantly from 1989 to 1992, the number dropped to 11 in fiscal year 1993, according to SSA. All but one DDS that staged claims said that they exempt certain priority claims from staging. Common examples are those involving terminal illness, homelessness, and certain children's claims. Also, although a staged claim is not immediately assigned to an examiner, 24 DDSS reported that some preliminary work is started on the claims, such as initiating requests for medical documentation. Page 16 GAO/HRD-94-11 Service and SSA Disability Programs Chapter 2 High Workloads Create Problems at DDSs Willingness to Work In fiscal years 1991 and 1992, the DDSS used overtime extensively to keep Overtime May Decline up with claim receipts-68,758 days in 1991 and 156,462 days in 1992. By comparison, the DDSS averaged 12,345 days of overtime per fiscal year from 1984 through 1990. In fiscal year 1992, the DDS administrators reported that, on average, two-thirds of their disability examiners worked overtime. While the use of overtime can be extremely useful in meeting short-term requirements, the reliance on overtime, especially over the long term, can be problematic. First, not all employees are interested in working overtime. The administrators reported that, on average-given an availability of unlimited resources-only two-thirds of their examiner staff would be willing to work overtime. Also, the willingness to work overtime may diminish as the number of overtime hours increases or the duration of the use of overtime lengthens. Half of the administrators reported that their examiners would be willing to work the same amount of overtime in fiscal year 1993 to a great or very great extent. The other half characterized examiner willingness as moderate or less. When asked if examiners would be willing to work more overtime in 1993, only 7 administrators described their examiners' willingness as great or very great; 34 described examiners as having some, little, or no such willingness. DDS Morale Is Not High According to DDS administrators, the morale of DDS employees is not high and Has Declined and has declined in the last several years. None of the administrators described employee morale as very high, and only nine described it as high. Most described the morale as moderate, and 11 described it as low or very low. Compared to 1989, 8 of the administrators said that morale improved considerably while 10 said that it improved somewhat. Nineteen said that morale declined somewhat, and 10 said that it declined considerably. In commenting on the reasons for the declining morale, the administrators most frequently cited high workloads. Automated Systems Other than funding for staffing, the most serious funding deficiency cited Support Is Inadequate by the DDS administrators was funding for automated systems support for claims processing. More than half said that funding was a problem during fiscal year 1992, with 18 saying that it was less than adequate and 9 saying that it was considerably less than adequate. Page 17 GAO/HRD-94-11 Service and SSA Disability Programs Chapter 2 High Workloads Create Problems at DDSs Sixteen administrators said that their current computerized processing systems meet DDS needs to a great or very great extent. Conversely, 15 said that their systems met their needs to a moderate extent, another 15 said that they did to some extent, and 2 said that they did to little or no extent. SSA plans to improve automation in the DDSS. Through 1995, SSA is requiring DDSS to automate six baseline functions.¹ Beyond 1995, SSA plans to start its implementation of an enhanced modernized disability system in the DDSS. This system is intended to fully integrate DDS operations into SSA'S by providing the DDSS with the same intelligent workstations, local area networks, and software applications used by SSA. Decisional Accuracy Historically, decisional accuracy for the disability programs has been relatively stable, with the accuracy rate for allowances higher than the rate May Be Adversely for denials. In fiscal year 1992, the accuracy rate for allowances declined Affected by Workload 0.2 of 1 percent, from 97.2 percent to 97.0. For denials in fiscal year 1992, the accuracy rate improved from 92.4 to 92.9. The improved accuracy for Pressures denials ended a 3-year decline in accuracy since 1988, when the rate was 93.4 percent. Many DDS administrators expressed concern about the effect of workload pressures on decisional accuracy, particularly with respect to claim denials. We asked the administrators to what extent fiscal year 1992 workload and staffing pressures contributed to inaccurate decisions. Regarding denials, 7 administrators said that these pressures contributed to decisional inaccuracies to a great or very great extent, while 15 said that the extent was moderate. In comparison, only three administrators said that workload and staffing pressures contributed to decisional inaccuracies in allowances to a great or very great extent and seven said that the extent was moderate. Performance of DDSs In fiscal year 1992, the performance of DDSS varied widely. To facilitate analysis of the DDSS, we grouped them into three categories. Category I Varies comprises 23 states, and the sole criterion for inclusion in this group was a weeks work on hand (WWOH) of 10 weeks or less. Category II comprises 19 states whose WWOH was more than 10 weeks and that had fewer than 13,000 pending claims. Finally, category III comprises 10 states; the criteria The six functions are (1) case receipt and assignment; (2) disability examiner interface and worksheets; (3) medical evaluation reports, consultative examinations, and fiscal/accounting; (4) DDS internal administrative and management information; (5) case closure; and (6) data and word processing. Page 18 GAO/HRD-94-11 Service SSA Disability Programs Chapter 2 High Workloads Create Problems at DDSs for inclusion in this group were an initial claims' WWOH of more than 10 weeks and 17,000 or more pending initial claims. Appendix II categorizes the 50 states as well as the District of Columbia and Puerto Rico in the three groups. Comparative data presented at the end of fiscal year 1992 include numbers of pending claims, processing times, and accuracy rates. The 23 states in category I generally are smaller states and better performers. Their WWOH on average was 8.4, which was almost half that of the category III states. Also, their production was the highest among the three categories, and their claim processing time was the lowest. Conversely, category III states generally are the most populous states and the poorest performers. Programwide, they accounted for 60 percent of all pending initial claims and half of all DDS work-years expended in fiscal year 1992. Their WWOH for initial claims averaged 15.4. Their combined production levels for fiscal year 1992 was the lowest among the three categories;² their claim processing time was the highest; and their accuracy rate was the lowest. Table 2.1 summarizes, by category, the performance of the DDSS for fiscal year 1992. Table 2.1: Selected DDS Performance Data for Initial Claims (by Defined DDS Category I Category II Category III All DDSs Categories), Fiscal Year 1992 Number of DDSs 23 19 10 52 Processing times (in days) 84 110 127 112 WWOH 8.4 12.0 15.4 12.8 Accuracy rates 95.3% 95.1% 93.3% 94.7% PPWY 253 235 228 236 Note: PPWY is based on DDS operations overall and not just initial claims. Processing time is measured from the date of application to the date of clearance by the DDS. Most time involves DDS processing. Figure 2.1 shows the overall performance of individual states, using the above category definitions. SSA measures production as the number of cases produced per DDS each work-year, or production per work-year (PPWY). Page 19 GAO/HRD-94-11 Service and SSA Disability Programs Chapter 2 High Workloads Create Problems at DDSs Figure 2.1: DDS Performance by Defined Category, Fiscal Year 1992 Category I Category II Category III Page 20 GAO/HRD-94-11 Service and SSA Disability Programs Chapter 3 SSA's Actions and Plans to Improve Service In the short term, SSA has taken several actions to maintain service levels in its disability programs. These include reallocating resources from CDRS to initial claim workloads and implementating a plan to reduce the number of pending claims. These actions have produced some progress in reducing pending claims and processing times, but, as mentioned earlier, their cost has been a lowering of morale in the DDSS and a cutback in other DDS workloads. SSA has under way numerous initiatives that over the long term are intended to improve service and productivity in its disability programs. Exactly how, when, and to what extent these initiatives will pay off is not known at this point. Further, an ongoing GAO review of SSA management has disclosed several problems regarding SSA'S long-term planning. Because of the relatively little progress made to date in reducing the claims pending and the uncertainty of SSA'S long-range efforts, the Secretary of Health and Human Services should develop a plan to (1) reduce the backlog of disability claims and (2) assure the performance of CDRS to the level necessary to comply with Social Security Act provisions. SSA Actions Reduce As early as 1990, to keep up with increasing claim receipts, SSA began Pending Claims reducing the number of CDRS it expected DDSS to perform. During the 3 years before 1990, DDSS devoted an average of about 1,300 work-years to Somewhat CDRS. In 1990, SSA cut the CDR effort by almost a third to 879 work-years. The effort was cut again in 1991 to 321 work-years and again in 1992 to 246 work-years. SSA estimates that not performing required DI CDRS¹ during fiscal years 1990 to 1993 will result in about $1.4 billion in benefits paid to ineligible persons, projected through fiscal year 1997. This loss does not include savings that could have resulted from CDRS that were not done before 1990 but should have been done Also, although data were not readily available to make similar estimates for the SSI program, the likely impact on that program is significant. According to SSA, at least 300,000 to 400,000 CDRS should be done each year to keep pace with the legislative requirement. Additionally, the current 'Generally, the Social Security Act requires that SSA review the continuing eligibility of DI beneficiaries at least every 3 years, except in cases where disabilities are considered permanent. As required under the law, regulations were issued that require that those with permanent disabilities are to be reviewed every 7 years. Page 21 GAO/HRD-94-11 Service and SSA Disability Programs Chapter 8 SSA's Actions and Plans to Improve Service backlog of statutorily required CDRS is about 1.1 million. In the last 4 years, the most CDRS done in a given year was 367,000 in 1989. In 1990, 195,000 were done, and 73,000 were done in each of fiscal years 1991 and 1992. Currently, SSA plans for about 73,000 CDRS to be done in each of fiscal years 1993 and 1994.2 Plan to Reduce Backlogs On January 31, 1992, the Commissioner of SSA approved a plan for reducing the backlog of disability claims. Key ingredients of the plan included short-term initiatives and the use of SSA'S $100 million contingency fund for fiscal year 1992. The initiatives, begun in February 1992, were to be in effect for 6 months; subsequently, they were continued indefinitely. Two key initiatives in the plan involved (1) reducing claim development and documentation requirements and (2) having certain DDSS and SSA components process claims for DDSS with large backlogs. Also, as part of the plan, SSA sought from HHS and the Office of Management and Budget the release of its $100 million contingency fund to support the use of overtime in DDSS. The contingency fund was released in March 1992, and the DDS share was about $66 million. Modification of the claim development and documentation requirements involved 15 specific types of claims (see app. III), and, with one exception, they applied to claims that appeared to be allowable. An internal SSA study of the implementation of the modified requirements showed that they were applied to about 7 percent of all claims processed between March and July 1992 and that they had no adverse impact on the accuracy of claim decisions. For example, the study showed that the decisional accuracy rate for the claims studied was 98.3 percent while the rate for all allowances in fiscal year 1992 was 97.0 percent. Further, the accuracy rates for the claims studied were higher than or equal to the 1992 accuracy rates of allowance decisions involving 12 of the 14 individual body systems (for example, cardiovascular, digestive, pulmonary). Our survey of the DDS administrators generally corroborated the results of SSA'S study. The administrators said that SSA'S initiatives and other actions The failure of SSA to perform CDRs and the related cost to the agency was the subject of a hearing held March 9, 1993, by the Select Committee on Aging, U.S. House of Representatives. Our testimony, GAO/T-HRD-93-9, Social Security: SSA's Processing of Continuing Disability Reviews, suggested that SSA should examine ways to refine its CDR process and increase the number of reviews beyond current levels. Page 22 GAO/HRD-94-11 Service and SSA Disability Programs Chapter 8 SSA's Actions and Plans to Improve Service to reduce backlogs did not contribute to any great extent to inaccuracies in allowance decisions (see app. II, questions 81 and 82). Regarding the initiative to provide assistance to DDSS with large backlogs, 23 DDS administrators surveyed said that they sent more than 58,700 claims to other states or federal organizations for processing. About 81 percent of the claims were sent to SSA organizational components, including regional quality assurance units and SSA headquarters. The remainder were sent to other states. Thirteen administrators also reported receiving staff on a 246, temporary basis from other states or federal organizations to help process claims. The number of employees detailed was 41, and the average detail lasted about 9.3 weeks. While 8 DDSS that sent or received cases for processing said that the process worked very well, 13 DDSS said that the process went moderately well, 14 said that it went somewhat well, and 3 said "not well." For those DDSS that transferred or received workloads, we asked the administrators to describe what problems, if any, they had with the process. Problems mentioned included (1) relatively significant start-up efforts, (2) differences in case development procedures, (3) confusion for claimants because some other state was processing their claims, and (4) increased processing times. Impact of Actions Taken Since initiation of the plan to reduce the backlogs, DDS productivity has increased considerably, but the number of pending claims has decreased only slightly. Overall, the DDS'S average PPWY for fiscal year 1992 was 235, which amounts to an 8.3 percent increase over 1991. For comparison purposes, the PPWY levels in fiscal years 1988, 1989, and 1990 were 210, 215, and 220, respectively. The increase in the PPWY during fiscal year 1992 generally coincides with the implementation of the short-term initiatives in February and the release of the contingency funds in March. The average PPWY for October 1991 through February 1992 was 210, compared to an average PPWY of 256 during March to September 1992. For fiscal year 1993, the PPWY was 261. When we asked the DDS administrators to what extent their fiscal year 1992 productivity improved as the result of the short-term initiatives, only three said that their productivity increases resulted from the initiatives to a great or very great extent. In contrast, 35 administrators said that their DDSS' Page 23 GAO/HRD-94-11 Service and SSA Disability Programs Chapter 8 SSA's Actions and Plans to Improve Service productivity increases resulted to a great or very great extent from the release of the contingency fund, which was used in large part to fund overtime pay. For the first 5 months of fiscal year 1992, the DDSS averaged 8,449 days of overtime. During the last 7 months of the fiscal year, overtime use nearly doubled, averaging 16,410 days per month. Relatively high overtime use continued in fiscal year 1993, averaging 12,414 days per month. Pending initial claims were reduced from the high in February 1992 of 638,000 to 555,000 through September 1993. This represents a reduction of 13 percent. Also, in fiscal year 1993, processing times were reduced about 10 days compared to 1992 levels. The initial claims pending by month for fiscal year 1990 through fiscal year 1993 are shown in figure 3.1. Figure 3.1: Initial DI and SSI Pending Claims by Month e 0 Number of Claims 00 550000 00 450000 400000 350000 300000 250000 200000 10/89 1/90 4/90 7/90 10/90 1/91 4/91 7/91 10/91 1/92 4/92 7/92 10/92 1/93 4/93 7/93 9/93 Month While progress has been made in reducing the claims pending, it is questionable how much more progress can be made or how long claims can be kept from rising. As discussed earlier, many DDSS appear to be Page 24 GAO/HRD-94-11 Service and SSA Disability Programs Chapter 3 SSA's Actions and Plans to Improve Service considerably stressed. Further, the decline in claims pending has tended to level off since December 1992. We also asked the DDS administrators what further actions SSA can take-other than an increase in funding or staffing-to reduce the number of pending disability claims. Forty administrators offered a total of 153 suggestions or recommendations on a wide variety of issues and topics. They included, for example, simplifying claim forms, procedures, and processes; placing more responsibility on the claimants to develop their claims; additionally modifying case development requirements; and giving the DDSS more authority or discretion in making claim decisions. On January 22, 1993, we provided SSA officials a copy of the DDS recommendations and our analysis of them. They said they would review the recommendations to determine which might warrant further study or implementation. Long-Term Initiatives SSA has numerous initiatives under way with the potential to make long-term improvements to service and increase productivity in its to Improve Service disability programs. Some examples appear in appendix IV. In 1991, SSA released its strategic plan, which provides a framework for agency planning and action to be completed by the year 2005. The planning document articulates, for example, the agency's mission and its service delivery goals and objectives. The plan also establishes five strategic priorities that are considered to be of paramount importance to the agency's future. These priorities are (1) improving the disability process, (2) improving the appeals process, (3) improving access to SSA, (4) turning SSA into a "paperless" agency, and (5) establishing a "cooperative processing architecture." Following the issuance of the strategic plan, the next step in SSA'S planning process was the issuance of strategic priority transition guidance in June 1992. This guidance identifies numerous specific initiatives that must be undertaken during the strategic planning period to accomplish the agency's goals and objectives. For these initiatives, SSA will develop 159 tactical plans to identify the specific activities required, including time frames for their completion and preliminary estimates of the denied benefits. SSA will revise the tactical Page GAO/HRD-94-11 Service SSA 1 lity Programs Chapter 8 SSA's Actions and Plans to Improve Service plans annually; the plans will provide input to the development of SSA'S annual budget. From its long-term strategy, SSA expects benefits in increased efficiency and productivity, cost avoidance, and improved service to the public. However, the precise nature and extent of the benefits to be realized from the more than 150 initiatives are not known at this point. The long-term nature of the undertaking and the fact that much study and development remains to be done makes it difficult to predict ultimate outcomes. According to SSA, it will develop more precise estimates of benefits as part of the annual budget process, which identifies those initiatives and activities that SSA is confident will produce a given result. In addition to its strategic planning initiatives, SSA has also recently begun a special study of disability claim processes. The study will attempt to identify ways to reengineer current processes and procedures to achieve greater efficiency and improved service. According to SSA, the initial phase of this study, along with recommendations, is to be completed by March 31, 1994. Three GAO studies completed in 1987, 1989, and 1991 have raised several issues concerning the adequacy of SSA'S long-range planning.³ More recently, an ongoing GAO review of SSA management has raised additional concerns. We communicated these concerns to SSA in August 1993 in a draft report titled Social Security: Sustained Effort Needed to Improve Management and Prepare for the Future. Conclusions The administration of SSA'S disability programs has reached a crisis stage. Service is poor and billions of dollars in payments to ineligible individuals will be wasted if mandated CDRS are not resumed. SSA'S short-term efforts to reduce the number of pending claims have been largely unsuccessful. Further, long-range SSA plans are uncertain about when and to what extent service will improve. The Secretary of HHS needs to act to address this crisis. Social Security Administration: Stable Leadership and Better Management Needed to Improve Effectiveness (GAO/HRD-87-39, Mar. 18, 1987); Social Security: Status and Evaluation of Agency Management Improvement Initiatives (GAO/HRD-89-42, Jul. 24, 1989); and SSA Computers: Long-Range Vision Needed to Guide Future Systems Modernization Efforts (GAO/IMTEC-91-44, Sept. 24, 1991). Page GAO/HRD-94-11 vice SSA ] bility Programs Chapter 8 SSA's Actions and Plans to Improve Service Recommendation to We recommend that the Secretary of Health and Human Services develop the Secretary of a plan to (1) reduce the backlog of SSA disability benefit claims and (2) assure the performance of CDRS to the level necessary to comply with Health and Human Social Security Act provisions. The recommended plan should be Services forwarded to the Congress and should establish a specific time frame for achieving SSA'S stated goal of 60-day claim processing times for its disability programs and identify to what extent, if any, additional staffing and funding may be needed for implementation. Page 27 GAO/HRD-94-11 Service and SSA Disability Programs Appendix I Questionnaire for DDS Administrators U.S. General Accounting Office Questionnaire for State Directors of Disability Determination Services Please make corrections, if any, to the mailing label Note: There are 54 DDSs, including two in South Carolina, and one each in the other 49 states, the District of Columbia, Guam and Puerto Rico. This questionnaire was sent to all but the South Carolina Commission for the Blind. of the 53 DDSs receiving the questionnaire, only Guam did not respond. L This questionnaire is part of a study being conducted by the U.S. General Accounting Office (GAO), an agency of the U.S. Congress. GAO has been asked by the Chairman of Please give the name, title, and telephone number of the the Senate Finance Committee to gather information on the person with whom we should speak if we need to clarify conditions and problems in states' Disability Determination any responses in this questionnaire: Services (DDS). Name: Your answers will provide valuable information for our report to the Committee. Copies of this questionnaire are Title: also being mailed to all state DDS directors to obtain information on their experiences. Telephone: Unless otherwise instructed, please answer questions based on the recently completed federal fiscal year 1992. Also, please answer all questions from the perspective of your DDS and not from that of the national program. This questionnaire has seven sections: -Staffing and Funding -Employee Issues 92.10.105371HRD.MJO -Staging Cases -SSA Case Development -SSA's Short-term Initiatives -State Policies and Regulations -General The questionnaire can be completed within one hour Please return your completed questionnaire in the enclosed preaddressed, prepaid envelope within 14 days of receipt. Our return address is Mr. Gary Turt U.S. GENERAL ACCOUNTING OFFICE Suite 1500 1445 Ross Avenue Dallas, TX 75202 If you have any questions, please call Gary Tutt at 214-855-2724 (Dallas) or Tom Smith at 410-965-8964 (Baltimore). Questionnaire for State Directors of Disability Determination Services, 1992 [105371] 1 Page 28 GAO/HRD-94-11 Service and SSA Disability Programs Appendix I Questionnaire for DDS Administrators Staffing and Funding 7. What is the maximum number of Disability Examiners 1. Which of the following best characterizes the overall that you believe a Supervisor can manage effectively? number of budgeted DDS staff in fiscal year 1992 (Enter number) (N=51) relative to the fiscal year 1992 caseload? (Check one) (N=52) 8 maximum number of Examiners per Supervisor Range 5-20 examiners per supervisor 1. 17 Significantly too few staff 2 27 Somewhat too few staff 8. What was the average number of Disability Examiners 3. 7 About the right number of staff per supervisor during fiscal year 1992? (Enter number) 4. 1 Somewhat too many staff (N=51) 5. o Significantly too many staff & average number of Examiners per Supervisor Range 4-18 examiners per supervisor 2 What percent of your DDS's current Disability Examiners have four or more years of experience as 9. What do you believe is the ideal ratio of clerical staff examiners? (Enter percent, rounding to the nearest per examiner? (Enter number) (N=49) whole percent) (N=51) & number of clerical staff per examiner 61 % Range 14-100% Range .1-3 clarical staff per examiner 10. What was the actual ratio of clerical staff per examiner 3. Following entry level training, how many months must a in fiscal year 1992? (Enter number) "typical" Disability Examiner work before you would (N=50) say be or she is proficient in adjudicating disability claims? (Enter number of months) (N=52) I number of clerical staff per examiner Range .1-3 clerical staff per examiner 16 months Range 7-30 months 11. Once your DDS is given authority to hire a new Disability Examiner, on average, about how many weeks 4. What percent of your DDS's current Disability elapse from the day the authority is given to the day a Examiners would you classify as proficient? (Enter candidate is selected for employment? (Enter number) percent) (N=51) (N=52) 77% Range 39-100% 11 number of weeks to hire a Disability Examiner Range 2-45 weeks 5. What is the maximum number of cases a proficient 12. Which of the following best characterizes the overall Disability Examiner can manage effectively at any one number of budgeted medical consultants, on DDS staff time? Count an individual's concurrent claims as one and under contract, in fiscal year 1992 relative to the case. (Enter number) (N=52) fiscal year 1992 caseload? (Check one) (N=52) 100 maximum number of cases a proficient 1. 4 Significantly too few medical consultants Disability Examiner can manage 2. 25 Somewhat too few medical consultants Range 70-150 cases 3. 23 About the right number of medical consulta nts 6. What was the average caseload per Disability Examiner 4. 0 Somewhat too many medical consultants during fiscal year 1992? Count an individual's 5. o Significantly too many medical consultants concurrent claims as one case. (Enter number) (N=52) 134 average number of cases per Examiner Range 78-245 cases 2 Questionnaire for State Directors of Disability Determination Services, 1992 [105371] Page 29 GAO/HRD-94-11 Service and SSA Disability Programs Appendix I Questionnaire for DDS Administrators 13. Overall, to what extent does your DDS have difficulty 16. Once your DDS is given authority to put into place a in recruiting medical consultants? (Check one) (N=52) contract with a new medical consultant, on average, how many weeks elapse from the day the authority is given 1. 7 Very great extent to the day a candidate is selected for contracting? (Enter 2. 9 Great extent number) (N=44) 3. 24 Moderate extent (GO TO QUESTION 15) 4. 7 Some extent (GO TO QUESTION 15) & number of weeks to contract with a medical 5. 5 Little or no extent (GO TO QUESTION 15) consultant Range 1-18 weeks 14. Which medical specialty(ies) is the most difficult to 17. Following entry level training, how many months must a recruit? (Print name(s) of specialty(ies)) (N=16) "typical" medical consultant work before you would say he or she is proficient? (Enter number of months) Orthopedic 11 (N=50) Prychiatric 10 Pediatric 9 & months Neurology 7 Range 2-23 months Cardiology 5 Prychology 3 Internal medicine 3 Other 4 15. Once your DDS is given authority to hire a new medical consultant, on average, how many weeks elapse from the day the authority is given to the day a candidate is selected for employment? (Enter number) (N=39) 2 number of weeks to hire a medical consultant Questionnaire for State Directors of Disability Determination Services, 1992 [105371] 3 Page 30 GAO/HRD-94-11 Service and SSA Disability Programs Appendix I Questionnaire for DDS Administrators Range 1-26 weeks 18. During fiscal year 1992, what percent of the time did the following non-examiner DDS staff spend processing disability claims rather than performing their normal duties? (Check one box for each position) Position 1-20% 21-40% 41-60% 61-80% 81-100% Not Applicable Professional Relations Staff (N=51) 10 8 3 1 2 27 Disability Hearings Officer (N=52) 5 4 5 7 20 11 Disability Examiner Supervisor (N=52) 25 12 5 2 I 7 Quality Assurance Staff (N=51) 16 8 7 6 6 8 Other Staff (Please specify) (N=18) 10 7 2 1 I Administrative/clerical 5 Director/depaty 4 Case aide/consultant 3 Training staff 3 Other 6 19. During fiscal year 1992, how adequate was your DDS funding for each of the following items? (Check one box for each activity) Consider- More than Adequate Less than Consider- ably more adequate (About the adequate ably less than right than DDS activity adequate amount) adequate Medical exam costs (N=52) 0 1 35 12 4 Applicant travel (N=52) 0 I 44 7 o Travel (N=52) 0 0 48 3 1 Equipment (N=52) 0 1 33 14 4 Training (N=52) 0 1 32 17 2 Space rental (N=52) 0 1 48 3 0 Communications (N=52) 0 o 48 3 I EDP/ADP (N=52) 0 2 23 18 9 Contracting out (N=51) 0 1 45 5 0 Other activity (Please specify) (N=9) 0 0 2 4 3 Staff/personnel 7 Overtime I Overall funding 1 4 Questionnaire for State Directors of Disability Determination Services. 1992 [105371] Page 81 GAO/HRD-94-11 Service and SSA Disability Programs Appendix I Questionnaire for DDS Administrators Employee Issues 20. Overall, how would you characterize the current morale 24. To what extent, if any, did post-entry level, on-going of the DDS employees in your state? (Check one) training from your DDS keep Disability Examiners (N=52) current with policy and procedural changes during fiscal year 1992? (Check one) (N=51) 1. 0 Very high 2 9 High 1. I Very great extent (GO TO QUESTION 26) 3. 32 Moderate 2. 22 Great extent (GO TO QUESTION 26) 4. 10 Low 3. 20 Moderate extent 5. 1 Very low 4. 7 Some extent 5. 1 Little or no extent 21. Which of the following best characterizes the morale of your state's DDS employees since 1989? (Check one) 25. Please elaborate on why you believe post-entry level, (N=52) on-going training from your DDS did not keep Disability Examiners current with policy and 1. 8 Improved considerably since 1989 procedural changes to any great extent. (N=25) 2. 10 Improved somewhat since 1989 3. 5 Remained about the same since 1989 Heavy caseloads/pressure 15 4. 19 Declined somewhat since 1989 Frequent/complex program changes 7 5. 10 Declined considerably since 1989 Inadequate SSA materials/policy 7 Lack of training staff/emphasis 4 Inadequate/inexperienced staff 2 22. What factors, do you believe, contributed the most to changing or maintaining employee morale since 1989? (List up to three factors) (N=51) 26. How did post-entry level, on-going training from your Negative factors: DDS in fiscal year 1992 compare to that in fiscal year Increased workload 33 1989 for keeping Disability Examiners current with Low pay/no raises 15 policy and procedural changes? (Check one) (N=51) Inadequate number of staff/funds 13 Complexity/program changes 13 1. 2 Much better in FY92 State personnel policies 4 2. 5 Somewhat better in FY92 Other negative factors 3 3. 26 About the same in FY92 Positive factors: 4. 12 Somewhat worse in FY92 Administrative/personnel policy changes 15 5. 6 Much worse in FY92 Additional staff/upgrades 14 New space/equipment 13 Increased pay/benefits/OT 10 27. How timely was post-entry level, on-going training for Staging/controlled cases 4 Disability Examiners from your DDS in fiscal year Short-term initiatives 4 1992? (Check one) (N=51) Other positive factors s 1. 3 Much too late 2. 15 Somewhat too late 23. On average, how many hours of post-entry level, on- 3. 33 About the right time (GO TO QUESTION 29) going training did Disability Examiners receive from 4. 0 Somewhat too early your DDS in fiscal year 1992? (Enter number) (N=51) 5. 0 Much too early 24 average number of hours Range 2-104 hours Questionnaire for State Directors of Disability Determination Services, 1992 [105371] 5 Page 32 GAO/HRD-94-11 Service and SSA Disability Programs Appendix I Questionnaire for DDS Administrators 28. Please elaborate on why you believe post-entry level, 34. What is the maximum number of overtime hours a DDS on-going training for Disability Examiners from your employee can work during any given pay period? (Enter DDS was given either too early or late. (N=18) number of hours) (N=19) Heavy caseloads/pressure 9 32 maximum number of overtime hours per pay Inadequate SSA materials/policy 8 period Lack of training staff/emphasis 4 Range 9-84 hours Other 3 35. How many regular work hours are in your DDS's pay period? (Enter number) (N=51) 29. When Disability Examiners left the employ of your DDS in fiscal year 1992, on average, how many years 93 regular hours per DDS pay period had they worked for the DDS? (Enter number of years, Range 38-176 hours rounded to the nearest whole year) (N=50) 36. Does your DDS have any policy or criteria that Z years employed with DDS Range 9-20 years precludes a DDS employee from working overtime? (For example, "poor performers" or inexperienced 10 Not applicable; no-one left in fiscal year 1992 employees) (Check one) (N=52) 1. 33 Yes 30. Since 1989, how has the average number of years of 2 19 No (GO TO QUESTION 38) service changed for retiring or departing Disability Examiners for your DDS? (Check one) (N=51) 37. Please describe under what conditions your DDS's 1. 4 Years of service have increased greatly policy or criteria would preclude employees from 2. 14 Years of service have increased somewhat (GO working overtime. (N=33) TO QUESTION 32) 3. 22 Years of service have remained about the same Poor performance 28 (GO TO QUESTION 32) Trainees/inexperienced staff 11 4. 8 Years of service have decreased somewhat (GO Supervisors can't work or 4 TO QUESTION 32) Other 10 S. 3 Years of service have decreased greatly 38. During fiscal year 1992, approximately, what percent of 31. What reasons do you believe explain the great increase your Disability Examiners worked any overtime? (Enter or decrease in the years of service employees had at the percent) (N=51) time of their leaving your DDS since 1989? (N=7) 65 % Range 0-100% Economy/higher pay 3 Productivity pressure 2 Lack of opportunities 2 39. Does either your DDS or state have a mandatory Other 6 overtime policy? (Check one) (N=52) 1. 10 Yes 32. Does either your DDS or state have a policy that allows 2 42 No (GO TO QUESTION 41) DDS employees to work overtime? (Check one) (N=51) 1. 48 Yes 2 3 No 33. Does either your DDS or state have a policy that limits the amount of overtime a DDS employee can work during any given pay period? (Check one) (N=52) 1. 21 Yes 2. 31 No (GO TO QUESTION 35) 6 Questionnaire for State Directors of Disability Determination Services. 1992 [105371] Page 33 GAO/HRD-94-11 Service and SSA Disability Programs Appendix I Questionnaire for DDS Administrators 40. Approximately, what percent, if any, of the overtime worked during fiscal year 1992 was mandatory? (Enter Staging Cases percent. rounded to the nearest whole percent) (N=9) l % In the following set of questions, we use the term staging We define the term staging to mean receiving a disability case and, upon receipt, setting is aside before assigning 41. If your DDS were authorized to approve unlimited the case to a Disability Examiner. overtime, what percent of the Disability Examiners, would you estimate, would be willing to work overtime? (Enter percent, rounded to the nearest whole percent) 44. For each fiscal year listed below, indicate whether or (N=51) not your DDS staged any disability cases. (Check one box for each fiscal year) (N=52) 66 % Range 1-100% Disability Cases Staged During Fiscal 42. In your opinion, to what extent, if any, will Disability Year? Examiners in your DDS be willing to work the same Yes No number of overtime hours in fiscal year 1993 that they worked in fiscal year 1992? (Check one) (N-48) FY92 33 19 1. 11 Very great extent FY91 26 26 2 13 Great extent FY90 5 47 3. 16 Moderate extent 4. 6 Some extent FY89 2 50 5. 2 Little or no extent 43. In your opinion, to what extent, if any. will Disability Examiners in your DDS be willing to work more overtime hours in fiscal year 1993 than they worked in 45. Approximately, what percent of the disability claims fiscal year 1992? (Check one) (N=48) your DDS received during fiscal year 1992 were staged? (Enter number) (N=31) 1. 2 Very great extent 2. 5 Great extent 41 percent of cases staged during FY92 3. 7 Moderate extent Range 1-99 percent 4. 19 Some extent 19 Not applicable: no cases staged in FY92 5. 15 Little or no extent 2 Don't know 46. On average, how many days were disability cases staged in your DDS during fiscal year 1992, measured from the time they were received to the time they were assigned to a Disability Examiner? (Enter number) (N=31) 26 average number of days cases staged Range 3-95 days 19 Not applicable; no cases staged in FY92 2 Don't know Questionnaire for State Directors of Disability Determination Services, 1992 [105371] 7 Page 34 GAO/HRD-94-11 Service and SSA Disability Programs Appendix I Questionnaire for DDS Administrators 47. Does your DDS expect to stage cases during fiscal year 51. Indicate whether or not each of the following steps is 1993? (Check one) (N=51) taken during the time a case is staged. (Check one box for each item) (N=24) 1. 21 Yes 2. 30 No Not Processing steps Taken Taken 48. Are any types of disability claims exempt from staging? Verify medical treatment(s) 8 16 (Check one) (N=36) Request medical documentation 21 3 1. 35 Yes Verify data with SSA 10 14 2. 1 No (GO TO QUESTION 50) Verify data with claimant 8 16 Other (Please describe) (N=3) 49. Indicate whether or not each of the following items is a Request recational documentation 1 criterion to exempt disability claims from being staged. Request ADL* information 1 Screen v immediate decision - be (Check one box for each item) (N=35) made 1 *Activities of Daily Living Criteria Yes No Terminal illness 35 0 AIDS 33 2 Homelessness 23 12 Reconsideration 12 23 Receipts from OHA 17 18 Zebley case 26 9 Presumptive disability 27 8 Congressional request 17 18 Other (Please specify) (N=11) Probable allowance 3 Special project/request ..... 3 Chronically ill/neonatal 3 Other 11 50. While cases are staged in your DDS, is any work done on them? (Check one) (N=36) 1. 24 Yes 2 12 No (GO TO QUESTION 52) 8 Questionnaire for State Directors of Disability Determination Services, 1992 (105371) Page 35 GAO/HRD-94-11 Service and SSA Disability Programs Appendix I Questionnaire for DDS Administrators 56. Excluding the SSA Form 3368. overall. how has the SSA Case Development quality changed, if at all, of other documentation your DDS received from SSA for disability cases since fiscal year 1989? (Check one) (N=51) 52. How would you rate the overall quality, that is, accuracy and completeness, of the Disability Reports (SSA Form 1. 1 Quality has increased substantially 3368) your DDS received from SSA during fiscal year 2 12 Quality has increased somewhat 1992? (Check one) (N=52) 3. 30 Quality has remained about the same 4. s Quality has decreased somewhat 1. 0 Very high quality 5. o Quality has decreased substantially 2. 5 High quality 3. 38 Moderate quality 4. , Low quality 5. o Very low quality 53. Overall, what percentage of the SSA Form 3368s your DDS received from SSA in fiscal year 1992 would you estimate were of a high or very high level of quality? (Enter percent) (N=51) 32% Range 0-97% 54. Overall, how has the quality of SSA Form 3368s changed, if at all, since fiscal year 1989? (Check one) (N=52) 1. 6 Quality has increased substantially 2 18 Quality has increased somewhat 3. 16 Quality has remained about the same 4. 12 Quality has decreased somewhat 5. o Quality has decreased substantially 55. Excluding the SSA Form 3368, how would you rate the overall quality, that is, accuracy and completeness, of other documentation your DDS received from SSA for disability cases during fiscal year 1992? (Check one) (N=52) 1. 0 Very high degree of quality 2. 7 High degree of quality 3. 36 Moderate degree of quality 4. 9 Low degree of quality 5. o Very low degree of quality Questionnaire for State Directors of Disability Determination Services. 1992 (105371) 9 Page 36 GAO/HRD-94-11 Service SSA D bility Programs Appendix I Questionnaire for DDS Administrators SSA's Short-term Initiatives 57. In a January 31, 1992 memorandum to all Deputy and Regional Commissioners, SSA Commissioner Gwendolyn S. King set out a Comprehensive Plan to address workload issues in the Disability program. This plan contained a series of initiatives grouped into short- mid- and long-term initiatives. The table below contains the nine short-term initiatives described by Commissioner King. For each initiative, (1) check one box that indicates the extent, if any. it has improved your DDS's productivity in fiscal year 1992 and (2) whether or not you believe the initiative should be made permanent. To what extent did the initiative improve your DDS's productivity Should the in fiscal year 1992? (Check one) initiative be made Little Some Moderate Great Very Great permanent? Initiative or No 1. Assistance from other States and 24 Yes Federal Components 30 7 8 3 2 12 No (N=50) 11 Don't Know 2. Regional Office Operational 21 Yes Assistance to Troubled DDSs 33 11 3 2 o 15 No (N=49) 11 Don't Know 3. Field Offices/Teleservice Centers 17 Yes Requesting Medical Evidence 32 8 4 I 0 15 No (N=45) 11 Don't Know 4. Strengthening Relations with State 28 Yes Governments 36 7 6 0 1 6 No (N=50) 11 Don't Know 5. Enhancing Teamwork with the 29 Yes DDSs Through Weekly 25 15 9 2 0 7 No Communications/Reporting 10 Don't Know (N=51) 6. Better Managing CDR Processing 33 Yes (N=48) 25 10 7 5 I 0 No 13 Don't Know 7. Requiring New Policies and 43 Yes Procedures Only When Critical 8 16 17 9 I 3 No (N=51) 2 Don't Know 8. Refinement of 45 Yes Development/Documentation 2 15 20 14 1 0 No Procedures (N=52) 2 Don't Know 9. Ensure that Quality Assurance 37 Yes Review Development Requests 24 13 10 3 0 I No are More Productive (N=50) 10 Don't Know 10 Questionnaire for State Directors of Disability Determination Services, 1992 [105371] Page 37 GAO/HRD-94-11 Service and SSA Disability Programs Appendix I Questionnaire for DDS Administrators 58. For those initiatives that you believe should not be made permanent, please explain why. (If more than one initiative, please indicate its corresponding item number in the previous table.) (N=29) Initiative 1: Short-term solution to a long-term problem (6); Slow process (2); Generates unnecessary work (2); Requires too many resources (1); Disabled deserve local service (1). Initiative 2: Not a long-term solution (4); SSA lacks staff/expertise (3); Micromanagement is counterproductive, Too many components involved, Regional office assistance more nuisance than help, Hard to track/locate cases, Higher SSA pay demoralizes DDS staff (1 each). Initiative 3: Raises fiscal/accounting issues (3); Much rework had to be done (3); Should be done by the DDSs (2); Not a long-term solution, Little positive impact, Different computer systems caused dual efforts (1 each). Initiative 4: Saw no evidence of this initiative, Should be done only upon request of the DDS (I each). Initiative 5: Weekly reporting/monitoring unnecessary (4); Little or no positive impact (2); Duplication of effort (2); Did not allow for ideas to improve productivity (1). Initiative 6: No responses. Initiative 7: If policies need to be changed, they should not be deferred, Not good on a crisis baris-only adds to confusion/poor quality work, As a long-term strategy, creates rather than solves problems (I each). Initiative 8: No responses. Initiative 9: No responses. 59. Compared to fiscal year 1991, did your DDS's FY92 61. Overall, to what extent, if any, do you believe your Production Per Work Year (PPWY) increase, decrease FY92 PPWY was improved as a result of SSA's release or stay about the same? (Check one) (N=52) of contingency funds? (Check one) (N=51) 1. 45 Increased 1. 14 Very great extent 2. 5 Stayed about the same 2. 21 Great extent 3. 2 Decreased 3. 6 Moderate extent 4. 9 Some extent 5. 1 Little or no extent 60. Overall, to what extent, if any, do you believe your FY92 PPWY was improved as a result of the nine short- term initiatives? (Check one) (N=51) 62. Did your DDS send any of its disability cases to other state DDSs or to any federal organizations for 1. o Very great extent processing assistance during fiscal year 1992? (Check 2 3 Great extent one) (N=52) 3. 18 Moderate extent 4. 21 Some extent 1. 23 Yes 5. 9 Little or no extent 2 29 No (GO TO QUESTION 66) Questionnaire for State Directors of Disability Determination Services, 1992 [105371] 11 Page 38 GAO/HRD-94-11 Service and SSA Disability Programs Appendix I Questionnaire for DDS Administrators 63. In the table below, (1) print the name of each state and federal organization to which your DDS sent disability 67. In the table below, (1) print the name of the other cases for processing during fiscal year 1992 and (2). the state(s) for which your DDS provided disability case number of cases you sent to each. (Enter names and processing assistance, if any, during fiscal year 1992 numbers) (N=23) and (2), the number of cases your DDS processed for each. (Enter names and numbers) (N=15) States or federal Number of Cases organization to which your sent in FY92 DDS sent disability cases Number of Cases in FY92 States for which your DDS Your DDS provided case processing Processed during 13 DDSs sent cases to 1 22 DDSs reported assistance during FY92 FY92 DDS or SSA unit sending 58,775 cases to other DDSs or 10 DDSs assisted 1 DDS 14 DDSs reported 5 DDSs sent cases to 2 SSA units for processing 9,280 DDS: or SSA units processing (1 DDS 4 DDS: assisted 2 DDSs cases for other 2 DDSs sent cases to 3 was unable to I DDS assisted 3 DDS: DDS: (1 DDS was DDS: or SSA units estimate the number unable to estimate sent) how many cases 2 DDSs sent cases to 4 they processed for DDSs or SSA units others) 1 DDS sent cases to 8 DDS: or SSA units 68. Overall, how well did it work to have your DDS receive and process other states' disability cases in FY92? (Check one) (N=15) 64. Overall, how well did it work to have other states or federal organizations process your disability cases in 1. 2 Very well FY92? (Check one) (N=23) 2 6 Moderately well 3. 6 Somewhat well 1. 6 Very well 4. 1 Not well 2. 7 Moderately well 3. 8 Somewhat well 4. 2 Not well 69. Please describe what problems, if any, you may have had with the procedure in which your state DDS processed other states' disability cases in FY92. 65. Please describe what problems, if any, you may have (N=10) had with the procedure in which other states or federal organizations processed your disability claims in FY92. Different case development procedures 10 (N=15) Delayed processing 2 Significant start-up effort 2 Delayed Processing 9 Other 4 Tracking/locating cases 7 Different case development procedures 6 Significant start-up effort 3 70. Were any persons from other states or federal Confusion for claimants 2 organizations detailed to your DDS during fiscal year Other 2 1992 to assist your DDS in processing cases? (Check one) (N=52) 66. Did your DDS process any disability cases for another 1. 13 Yes state during fiscal year 1992? (Check one) (N=52) 2. 39 No (GO TO QUESTION 72) 1. 15 Yes 2 37 No (GO TO QUESTION 70) 12 Questionnaire for State Directors of Disability Determination Services, 1992 [105371] Page 89 GAO/HRD-94-11 Service and SSA Disability Programs Appendix I Questionnaire for DDS Administrators 71. In the table below, (1) print the name of the other 73. In the table below, (1) print the name of the other state(s) that detailed their employee(s) to your DDS to state(s) to which your DDS employee(s) were detailed provide processing assistance during fiscal year 1992, to provide processing assistance during fiscal year 1992, (2). the number of individuals they detailed to your (2), the number of individuals that were detailed and DDS and (3), the aggregate number of weeks their (3), the aggregate number of weeks their details lasted. details lasted. (Enter names and numbers) (N=13) (Enter names and numbers) (N=9) Aggregate Number of Aggregate Number of Number of Your DDS Number of States that detailed Employees Weeks States to which your Employees Weeks employees to your Detailed Detail(s) employees were Detailed Detail(s) DDS during FY92 lasted detailed during FY92 lasted 9 DDS: had detailees 9 DDSs 9 DDSs 8 DDSs detailed 9 DDSs 9 DDSs from 1 DDS or SSA reported 41 reported employees to 1 DDS reported reported unit employees 383 weeks or SSA unit detailing 218 weeks detailed to worked by 2 DDSs had detailees 32 worked by their DDSs detailes (4 1 DDS detailed from 2 DDSs or SSA employees employees (4 DDSs DDSs employees to 3 DDSs to other units they were were or SSA units DDSs detailed I DDS had detailees unable to unable to from 3 DDSs or SSA estimate) estimate) units 1 DDS had detailees from 5 DDS or SSA units 72. Were any of your DDS employees detailed to other state DDS offices or federal organizations during fiscal year 1992 to assist them in processing cases? (Check one) (N=52) 1. 9 Yes 2 43 No (GO TO QUESTION 74) Questionnaire for State Directors of Disability Determination Services, 1992 [105371] 13 Page 40 GAO/HRD-94-11 Service and SSA Disability Programs Appendix I Questionnaire for DDS Administrators State Policies and Regulations 74. Although DDSs are federally funded, we recognize that they are state agencies and may be subject to state regulations and requirements. For each of the following. indicate the extent, if any, state regulations and requirements make it more difficult to manage your DDS's program. (Check one box for each item) Extent of Difficulty Little Some Moderate Great Very State Regulations and Requirements or No Great Promotions (N=50) 14 15 15 1 5 Salary levels (N=50) 7 8 12 s 15 Bonuses (N=50) 8 5 6 5 21 Use of overtime (N=50) 31 3 7 5 2 Staff utilization (N=50) 32 5 5 6 2 Recruiting (N=50) 14 9 17 6 4 Hiring (N=50) 10 7 13 14 6 Training (N=50) 39 6 2 1 2 ADP purchasing rules (N=49) 12 14 10 9 4 Contracting for Services (N=50) 13 11 12 8 6 Furloughs (N=48) 32 3 2 3 7 Labor/management agreements (N=49) 27 9 4 4 4 Other (Please explain) (N=4) o 1 2 I 0 Leasing procedures 2 Staffing 2 Grievance procedures I 14 Questionnaire for State Directors of Disability Determination Services, 1992 [105371] Page 41 GAO/HRD-94-11 Service and SSA Disability Programs Appendix I Questionnaire for DDS Administrators 75. For each item you selected "Great" or "Very Great" in the preceding table, please elaborate on your reasons. (N=39) Promotions: Restricted to layoff recalls and upward mobility, Freezes, A jungle of bureaucracies (1 each). Salaries: Low salaries (8); Pay set outside the DDS (5); No pay raises (3); Only union employees got pay raises last 2 years (2); No supervisory overtime pay, Hard to reward/penalize due to combination of merit pay and union contract (1 each). Bonuses: No bonuses allowed (15); Bonuses limited/difficult to give (5). (Continued on page 18) 79. To what extent, if any, did fiscal year 1992 workload General and staffing pressures contribute to inaccuracies in DDS disability decisions for allowances? (Check one) (N=51) 76. Excluding situations where work experience is 1. 1 Very great extent substituted for education, what is the minimum 2 2 Great extent educational requirement for your DDS Disability 3. 7 Moderate extent Examiner position? (Check one) (N=51) 4. 14 Some extent 5. 27 Little or no extent 1. 3 High school graduate or equivalent 2. 0 Associate degree 3. 44 Bachelor degree 80. To what extent, if any, did fiscal year 1992 workload 4. I Masters degree and staffing pressures contribute to inaccuracies in DDS 5. 0 Doctoral degree disability decisions for denials? (Check one) (N=50) 6. 3 Other (Please specify): (N=3) Civil service exam required I 1. 4 Very great extent No education requirement 1 2 3 Great extent Knowledge, skills and abilities equal to 3. 15 Moderate extent batchelor's degree 1 4. 10 Some extent 5. 18 Little or no extent 77. To what extent, if any, does your DDS's computerized data processing system (both hardware and software) currently meet the needs of your DDS? (Check one) 81. Did any of the Commissioners' initiatives and other (N=51) actions taken to reduce claim backlogs in fiscal year 1992 contribute to inaccuracies in DDS disability 1. 2 Very great extent decisions for allowances? (Check one) (N=52) 2 14 Great extent 3. 15 Moderate extent 1. 10 Yes 4. 15 Some extent 2 41 No (GO TO QUESTION 83) 5. 2 Little or no extent 1 Don't know 3 No EDP 78. Approximately, what percentage, if any, of your DDS's disability claims process is automated? (Check one) (N=51) 1. 13 0-20% 2. 10 21-40% 3. 12 41-60% 4. 11 61-80% 5. 4 81-100% I Don't Know Questionnaire for State Directors of Disability Determination Services, 1992 [105371] 15 Page 42 GAO/HRD-94-11 Service and SSA Disability Programs Appendix I Questionnaire for DDS Administrators 82. To what extent did the Commissioners' initiatives and 86. What are your major difficulties in recruiting physicians other actions taken to reduce claim backlogs in fiscal for medical consultative examinations (CEs)? (N=32) year 1992 contribute to inaccuracies in DDS disability decisions for allowances? (Check one) (N=10) Lack of sources/interest 31 Low fees 27 1. o Very great extent Bureaucracy/requtrements 13 2. 0 Great extent Hostile/problem clients 7 3. 1 Moderate extent Other 5 4. 6 Some extent 5. 3 Little or no extent 87. Are there any medical specialties that your DDS has particular problems in recruiting? (Check one) 83. Did the Commissioners' initiatives and other actions (N-49) taken to reduce claim backlogs in fiscal year 1992 contribute to inaccuracies in DDS disability decisions 1. 49 Yes-> Please print the name of the for denials? (Check one) (N=52) specialty(ies) your DDS has difficulty in recruiting: 1. 2 Yes 2. 49 No (GO TO QUESTION 85) Orthopedic 40 I Don't know Neurology 31 Prychiatric 21 Pediatric 19 84. To what extent did the Commissioners' initiatives and Cardiology 9 other actions taken to reduce claim backlogs in fiscal Ophthalmology 8 year 1992 contribute to inaccuracies in DDS disability Prychology 7 decisions for denials? (Check one) (N=2) Other 12 2. 0 No 1. o Very great extent 2. 0 Great extent 3. I Moderate extent 4. I Some extent 5. 0 Little or no extent 85. How easy or difficult is it for your DDS to recruit physicians for medical consultative examinations (CEs)? (Check one) (N=52) 1. 0 Very easy (GO TO QUESTION 87) 2 1 Easy (GO TO QUESTION 87) 3. 19 About equally easy as difficult (GO TO QUESTION 87) 4. 23 Difficult 5. 9 Very difficult 16 Questionnaire for State Directors of Disability Determination Services, 1992 [105371] Page 43 GAO/HRD-94-11 Service and SSA Disability Programs Appendix I Questionnaire for DDS Administrators 88. Please use this and the remaining pages to describe things that you believe SSA can do, that it is not already doing, other than an increase in funding or staffing. to reduce the current disability case backlog and/or adjudicate cases in a more timely manner. (N-40) Forty DDS Administrators provided 153 suggested actions. Our analysis showed that these suggestions could be grouped into the following 16 categories. We provided a complete list of the suggestions to SSA. 1. Case development (27) 2. Forms improvement (17) 3. Budget/funding (13) 4. SSA guidelines/policies (13) 5. Quality assurance (12) 6. Special initiatives (11) 7. More DDS authority (9) & More claimant involvement (8) 9. Automation (7) 10. Changes in law/regulations (6) 11. Appeals (6) 12. Program Operations Manuals (6) 13. Continuing disability reviews (5) 14. Training (5) 15. Frivoious claims (4) 16. Outreach (4) Questionnaire for State Directors of Disability Determination Services, 1992 [105371] 17 Page 44 GAO/HRD-94-11 Service and SSA Disability Programs Appendix I Questionnaire for DDS Administrators Question 75 responses continued: Use of Overtime: Difficult to obtain state approval (4); Subject to collective bargaining agreement, Professionals not eligible for overtime (1 each). Staff Utilization: DDS losing positions/spending authority due to state downstzing, Cannot work people out of classifications. Fair Labor Standards Act causes problems, Requires modification of job duties resulting in grievances, State imposed 5 percent cut in personnel services-2 FTEs for the DDS (1 each). Recruiting: State requirements too restrictive (2); Process takes too long (2); Salaries too low (1) Hiring: Process too slow, too long (8); Hiring requirements set by others (4); Hiring freezs (3); Lack of positions (1). Training: Lack of good candidates requires more investment in training, No travel approved for training (1 each). ADP Purchasing Rules: Lengthy process controlled by others (8); Established by parent agency, Protects us from ourselves (1 each). Contracting for Services: Cumbersome process (6); Union rules (2); Not enough flexibility, Limited use (1 each). Furloughs: Furioughs limit federal work (3); Some DDS layoffs due to funding problems, Furloughs not acceptable in public agencies (1 each). Labor/Management Agreements: Creates difficulty in managing/evaluating staff (5); State closely regulated by labor contracts (2); Limits contracting for services, Negotiations seem interminable, Supervisors/Senior examiners cannot work overtime (I each). Other-State requirements for leased office space: Complex/time consuming process, SSA/State requirements conflict (1 each). 18 Questionnaire for State Directors of Disability Determination Services. 1992 [105371] Page 45 GAO/HRD-94-11 Service and SSA Disability Programs Appendix I Questionnaire for DDS Administrators Please complete and return within : weeks to Mr. Gary Tutt U.S. GENERAL ACCOUNTING OFFICE Suite 1500 1445 Ross Avenue Dallas, Texas 7502 Page 46 GAO/HRD-94-11 Service and SSA Disability Programs Appendix II Selected DDS Performance Data for Fiscal Year 1992 The following tables display the state DDSS grouped into three categories according to their initial pending claims and their weeks work on hand at the end of fiscal year 1992. Category I includes all DDSS with 10 or fewer WWOH, regardless of the size of their pending claims. Category II includes DDSS with more than 10 WWOH but with less than 13,000 initial pending claims. Finally, Category III includes DDSS with a WWOH greater than 10 and initial pending claims of more than 17,000. States appear in descending order on the basis of weeks work on hand. The tables also include other fiscal year 1992 DDS performance indicators-the production per work-year, the number of work-years, overall decisional accuracy rates, and overall claim processing times. The latter are measured from the date of application to DDS clearance. The PPWY and work-years are based on total DDS workloads while all other data are based on initial claims only. Page 47 GAO/HRD-94-11 Service and SSA Disability Programs Appendix II Selected DDS Performance Data for Fiscal Year 1992 Category I DDSs (23) Pending Work-years DDS Accuracy Processing claims used WWOH PPWY rates times (days) Connecticut 4,351 104 10.0 275 94.9% 89 Delaware 869 27 9.9 209 95.6% 109 lowa 3,730 107 9.8 242 94.9% 80 Tennessee 11,642 371 9.7 237 96.7% 89 Nebraska 1,872 60 9.4 223 95.5% 70 Massachusetts 10,035 283 9.3 254 95.7% 93 Florida 21,532 646 9.2 255 95.9% 79 Arkansas 6,205 178 9.1 277 95.9% 89 District of Columbia 1,255 41 8.8 227 95.6% 124 Minnesota 4,317 141 8.7 238 95.3% 88 Maine 1,783 56 8.6 255 93.9% 76 Washington 5,689 207 8.5 227 94.8% 109 Alaska 423 18 8.4 189 96.4% 115 Utah 1,502 48 8.4 222 96.2% 150 Montana 1,045 41 7.7 245 94.6% 76 South Dakota 830 29 7.7 254 95.4% 85 North Carolina 9,162 335 7.3 265 95.6% 67 Wyoming 431 14 6.8 297 96.8% 65 Missouri 7,762 284 6.8 285 92.3% 71 North Dakota 449 22 6.7 215 95.6% 76 Vermont 650 27 6.4 242 96.2% 102 Virginia 6,158 271 6.3 256 96.1% 77 Idaho 943 46 4.9 276 96.1% 75 Category I subtotals 102,635 3,356 8.4 253 95.3% 84 Percent of total 18% 26% Page 48 GAO/HRD-94-11 Service and SSA Disability Programs Appendix II Selected DDS Performance Data for Fiscal Year 1992 Category II DDSs (19) Pending Work-years Accuracy Processing DDS claims used WWOH PPWY rates times (days) Hawaii 2,110 32 18.5 206 95.8% 163 West Virginia 8,131 181 16.2 217 93.4% 106 Nevada 2,689 48 15.2 245 96.4% 153 Rhode Island 2,043 42 14.0 235 94.8% 108 Puerto Rico 4,338 155 13.8 172 95.8% 100 New Hampshire 1,744 34 13.7 247 95.5% 102 Wisconsin 10,464 225 13.5 227 96.0% 110 Maryland 8,698 205 13.0 219 94.4% 113 Arizona 7,570 162 12.8 236 94.4% 147 Indiana 12,162 258 12.6 256 96.3% 96 New Mexico 3,966 102 12.5 216 94.9% 113 Alabama 12,922 318 12.4 240 94.6% 118 Oregon 3,836 116 12.4 195 95.4% 123 Kentucky 12,433 325 11.9 250 96.0% 103 Mississippi 10,437 253 11.2 266 93.8% 89 Kansas 4,009 123 11.0 194 94.7% 109 South Carolina 8,092 204 10.8 255 96.3% 102 Colorado 5,178 130 10.4 248 94.7% 117 Oklahoma 5,783 164 10.1 259 96.7% 116 Category II subtotals 126,605 3,077 12.0 235 95.1% 110 Percent of total 22% 23% Page 49 GAO/HRD-94-11 Service and SSA Disability Programs Appendix II Selected DDS Performance Data for Fiscal Year 1992 Category III DDSs (10) Pending Work-years Accuracy Processing DDS claims used WWOH PPWY rates times (days) Ohio 39,595 545 21.7 214 93.8% 138 California 84,945 1,483 18.9 214 94.1% 157 Loi ana 25,759 495 17.0 211 94.7% 135 New Jersey 17,922 376 15.8 193 94.5% 158 Michigan 26,969 461 15.6 255 93.6% 116 New York 51,209 1,028 15.0 220 92.9% 118 Georgia 17,105 388 12.7 246 94.4% 94 Illinois 28,228 628 12.6 247 94.8% 105 Texas 37,367 835 12.4 249 94.5% 121 Pennsylvania 18,745 550 10.1 241 93.8% 105 Catetory III subtotals 347,844 6,789 15.4 228 93.3% 127 Percent of total 60% 51% To , all categories 577,084 13,222 12.8 236 94.7% 112 Percent, all categories 100.0% 100.0% Page 50 GAO/HRD-94-11 Service and SSA Disability Programs Appendix III Modified Claim Processing Procedures Approved by SSA Commissioner 1. Completion of the Psychiatric Review Technique Form: For allowances, the DDS physician/psychologist does not have to complete the form beyond the point at which an allowance is apparent. When this procedure is used, the form must include a summary statement addressing the areas that affect the allowance. 2. Completion of the Residual Functional Capacity Assessment Forms: For allowances, the DDS physician/psychologist does not have to complete the forms beyond the point at which an allowance is apparent. When this procedure is used, the form must include a summary statement. 3. Establishment of Alleged Onset Date as the Onset Date in DI Cases: The alleged date may be used as the established onset date in DI cases without full onset documentation when (1) the date is within 3 years of the current date; (2) other evidence in file clearly supports an allowance; and (3) nothing in file suggests that the impairment was not disabling as of the alleged date. 4. Adverse Vocational Factors: The DDS adjudicator may make an allowance determination with less than ideal medical documentation if the claimant has adverse vocational factors (e.g., closely approaching retirement age with a high school education or less and no transferable work skills). 5. Chest Pain Description: The DDS adjudicator may make an allowance determination in cardiovascular cases involving chest pain without a detailed description of the chest pain, provided other objective medical findings in the file support a finding of disability. 6. Cancer Pathology Reports: The DDS adjudicators may make an allowance determination in a cancer case without pathology reports, provided other evidence in the file shows that the medical criteria are met. 7. X Ray Evidence: The DDS adjudicator may make an allowance determination without X ray evidence when severe joint damage is readily apparent by other signs and clinical findings. 8. Pulmonary Function Studies: The DDS adjudicator may make an allowance determination in a Page 51 GAO/HRD-94-11 Service and SSA Disability Programs Appendix III Modified Claim Processing Procedures Approved by SSA Commissioner respiratory impairment case without purchasing pulmonary function studies when other medical evidence in file supports a disabling pulmonary impairment. 9. History/Physical: The DDS adjudicator may make an allowance determination without a thorough medical history and physical examination when severe chronic disease is otherwise documented by laboratory findings and other objective findings. 10. Chronic Renal Disease: The DDS adjudicator may make an allowance determination on the basis of a treating physician's description of chronic renal disease and evidence of ongoing dialysis. 11. Activities of Daily Living: The DDS adjudicator may make an allowance determination in cases involving pain and mental impairments without a complete description of the activities of daily living when other evidence in the file supports a finding of disability. 12. Deferred Medical Development: The DDS adjudicator may make favorable determinations involving impairments such as heart attacks and strokes without waiting for the impairment to stabilize provided that the evidence in file shows the claimant has little or no chance of regaining significant function. 13. Obesity: The DDS adjudicator may make an allowance determination on the basis of excess weight alone when other evidence in file supports an allowance. 14. Completion of Individualized Functional Assessment: For an allowance involving SSI childhood disability claims, the DDS adjudicative team does not have to complete every applicable section of the assessment. 15. Visual Impairment: The DDS adjudicative team may make a denial determination when the medical evidence of record is based on automated perimetry devices showing no loss of visual fields and there is no other impairment alleged or documented. Page 52 GAO/HRD-94-11 Service and SSA Disability Programs Appendix IV Examples of SSA's Strategic Planning Initiatives The initiatives planned to improve the disability and appeals processes, as well as all other initiatives, involve a wide variety of activities. The following describes briefly some of these initiatives. Improving Claims SSA is testing ways to improve the timeliness and quality of disability claims intake and development. Intake One model being tested involves providing claims representatives with intensified medical training to permit them to initiate medical evidence development earlier in the claims process. The expected benefits are reduced claim processing times and increased decisional accuracy. SSA is piloting the approach at several locations in one state and will make recommendations regarding national implementation after completing the final evaluation report. Another model being tested in at least three states involves giving applicants the opportunity to gather their own medical evidence. The principal advantage for applicants who choose to apply for benefits in this manner is shorter processing time. Also, it may be possible to save some of the administrative costs associated with DDS development of medical evidence. Face-to-Face A face-to-face interview enables applicants or their representatives to present their full case in person and allows decisionmakers to make direct Interviews observations about the alleged impairment(s) and tailor the interview accordingly. Generally, the earliest that applicants are afforded a face-to-face interview with a decisionmaker is when they have appealed an adverse decision to the Administrative Law Judge level. SSA plans to test several models that would provide for a face-to-face interview earlier in the disability determination process, such as a predenial interview by the disability determination service. The potential benefit of such a change is that more ultimate decisions would be made earlier in the process. Testing of several options is targeted to begin following publication of the final regulations that will establish the specific authority to conduct these tests. Automating DDSs SSA plans to provide all DDSS with at least a baseline level of automation through 1995. Beyond 1995, SSA plans to implement an enhanced Page 53 GAO/HRD-94-11 Service and SSA Disability Programs Appendix IV Examples of SSA's Strategic Planning Initiatives modernized disability system in the DDSS. By using the same computerized workstations, local area networks, and software applications used by SSA, DDSS will be fully integrated with SSA systems and be able to communicate directly with SSA field offices, program service centers, teleservice centers, other DDSS, ALJS, and SSA headquarters. Standard software and hardware would also facilitate the introduction of such processing enhancements as "paperless processing," voice-to-print technology for medical and vocational information, and the capacity to readily shift workloads among the DDSS and other SSA components. SSA expects modernized automation to have a substantial impact on improving timeliness, decisional accuracy and consistency, and productivity. National implementation is expected to start in 1996 and be completed by 2005. Page 54 GAO/HRD-94-11 Service and SSA Disability Programs Appendix V Major Contributors to This Report Human Resources Barry Tice, Assistant Director, (410) 965-8920 Tom Smith, Assignment Manager Division, Washington, D.C. Dallas Regional Office Sherrill H. Johnson, Issue Area Manager Louis G. Tutt, Evaluator-in-Charge Page 55 GAO/HRD-94-11 Service and SSA Disability Programs Related GAO Products Social Security Disability: SSA Needs to Improve Continuing Disability Review Program (GAO/HRD-93-109, July 8, 1993). Social Security: Rising Disability Rolls Raise Questions That Must Be Answered (GAO/T-HRD-93-15, Apr. 22, 1993). Social Security: SSA Needs to Improve Service for Program Participants (GAO/T-HRD-93-11, Mar. 25, 1993). Social Security Disability: Growing Funding and Administrative Problems (GAO/T-HRD-92-28, Apr. 27, 1992). SSA Computers: Long-Range Vision Needed to Guide Future Systems Modernization Efforts (GAO/IMTEC-91-44, Sept. 24, 1991). Social Security: Status and Evaluation of Agency Management Improvement Initiatives (GAO/HRD-89-42, July 24, 1989). Social Security: Effects of Budget Constraints on Disability Program (GAO/HRD-88-2, Oct. 28, 1987). Social Security Administration: Stable Leadership and Better Management Needed to Improve Effectiveness (GAO/HRD-87-39, Mar. 18, 1987). (105371) Page 56 GAO/HRD-94-11 Service and SSA Disability Programs Meeting on Disability -- Friday, February 4 Proposed Agenda 1. Short term. HHS has a major reengineering project underway with report due March 31. Expectation is that the reengineering team will share broad blueprint which will lead to pilots in fall of 1995 and fuller implementation in fall of 1996. Question: This timeframe for improvement seems slow in view of possible political problems from growing backlogs and lengthening claims/appeals processing time (Slated to be 145 days for initial claims in FY 1994, up from 75 day average in 1980s; and 330 days for appeals, up from about 200 days in mid-1980s). What steps can be taken in the interim which would materially reduce delays and improve service while not being inconsistent with the longer-term reengineering enterprise? What should/could be the role of DPC/OMB in cooperation with HHS and SSA to make such improvements happen, and what might such a project look like? (See attachment for discussion of one possible approach). 2. Longer term. The dramatic but poorly understood rise in disability claims and their associated budget costs, as well as the coming insolvency of the DI trust fund, make broader reexamination of SSI and DI a fiscal and policy imperative. Assuring that the needy are handled compassionately and with dispatch is critical. At the same time, however, some are concerned that SSI in particular is becoming a safety valve of first resort for states looking to lower their general assistance costs. With welfare reform aiming to get people back into the workforce, it may also be time to attempt to improve the highly ineffective "rehabilitation" aspects of disability. (In FY 1991, 232,000 cases were referred for rehabilitative services out of a caseload of 7.1 million recipients. During that time 6,032 were able to resume work). This effort would require a better understanding of why the disabled rolls are spiralling and who the disabled are. In addition, any broader policy reform may want to address both the fact and the perception that taxpayer money is being misspent on those who never were or who no longer are disabled. Question: Should the Administration launch a major policy development effort on disability reform? Potential forms such an effort might take include: Joint DPC/OMB-led task force on disability with strong HHS/SSA participation (along with early input from WH political shops) A Commission on Disability (like the one on Head Start) to build consensus while educating constituencies. (The National Academy of Social Insurance launched a three-year commission on disability in March 1993 which plans to share a one year status report in late February. Could this panel's work be leveraged somehow? Or is their timetable too long and charter/structure insufficiently political to be relevant as anything other than a resource to the Administration?) Draft 2/2 DISCUSSION OUTLINE: POSSIBLE SHORT-TERM DISABILITY PROJECT Criteria for Project Several criteria should govern a decision to pursue a joint HHS/DPC/OMB management initiative or "workout" on disability. Arguably, such an effort should only be undertaken if: (1) we have strong hypotheses of recommendations or changes that will materially reduce processing time/backlogs before the reengineering effort bears fruit; (2) these changes could be implemented fast and not be inconsistent or interfere with the reengineering project; (3) DPC/OMB can play an important role in assisting HHS with outside pressure to change current SSA practices or in mobilizing relevant resources across agencies or the White House (e.g. Intergovernmental Affairs). Possible Project that Meets Criteria: "Key States Disability Initiative" Ten of the most populous (and politically important) states account for 60% of initial claims and have by far the worst service levels. (GAO, for example, found that in 1992 these states averaged 127 days processing time for initial claims, as opposed to 84 days for the 23 best performing states). These include California, Texas, New York, Illinois, Michigan, Ohio, Pennsylvania, Georgia and Florida. A "workout" team targeting all or several of these key states (under the direction of policy group comprised of the HHS Deputy Secretary and Assistant Secretary for Management and Budget, the Commissioner of Social Security, the White House Assistant for Domestic Policy, and the OMB Deputy Director) might address the following areas as part of a charge to return with recommendations by April 15: Initial Claims Processing. More aggressive shifting of claims work from overburdened states to other states with less backlog might reduce processing times significantly. A variant might be to pick just a few key states (selected for political reasons) for such "relief," so that the relative burden shifted to "recipient states" was small and politically acceptable. Upfront negotiation and buy-in between the White House/SSA and key governors might break expected bureaucratic logjams in such an effort. Key states might also be given immediate waivers to test immediately ideas emerging from the reengineering group (i.e. allowing the federal SSA office to make the initial determination itself in clear "approve" cases -- e.g. the person has lost a leg -- rather than sending to state DDS for processing that takes weeks). There may even be creative ways to condition other waivers sought by states on cooperation in assisting their neighbors with disability backlogs. Automation Acceleration. Despite severe need, SSA is apparently reluctant to begin automation installation in OHA and the DDSs because without underlying system design they are subject to criticism from GAO and others. However, even patching current operations with hardware and available software might improve interim productivity. Redirecting resources within SSA's strategic priority investments toward accelerated automation for OHA and the key states might improve results in the short-run prior to implementation of the Modernized Disability System in FY 1996-98. OHA. Total annual appeals have risen over 50% since FY 1990. ALJ's average only two decisions per day, while no overtime is paid and work process inefficiencies are believed to be high. The SSA appeals process has been the subject of over 37 studies with little perceptible change. It appears that the reengineering project is not making OHA a priority; many also believe the OHA culture is highly insular and resistant to change. HHS might develop a team, including appropriate judicial/legal authorities who carry weight with the ALJ community, to identify areas for short-term improvement and possibly benchmarks for productivity. At a minimum, a review of the many previous studies by an independent, HHS-led team might help jumpstart a set of sensible reforms. Payment cycling. Although this idea has application beyond the disability context at SSA, it can be a major component of any reinventing effort and dovetails well with efforts to smooth the peaks and valleys in current workloads that invariably affect claims processing and other services offered. Methods to accelerate phase-in of such cycling could be studied as part of the project. Possible Next Steps? If a short-run project like the one described seems attractive: - guidance on goals, scope and approach to project need to be refined by principals staffing needs and a detailed workplan would need to be prepared quickly, so that project could be completed for consideration at same time reengineering blueprint is under discussion. consultation with other relevant WH senior staff, agency officials, and potentially governors should take place * Coopers &Lybrand Defining BPR TRUMANSERVICES. USA HEALTH OF DEPARTMENT Business Process Reengineering is a fundamental rethinking and radical redesign of an entire "core business process" - The business processes, jobs, organizational structures, management systems, beliefs and values - to achieve dramatic improvements in critical measures of performance. 31018.s2 Copyright © Coopers & Lybrand, 1993 2-2 DISABILITY RE-ENGINEERING Executive staff decision for dramatic improvement DIB process from individual expression o1 intent to file through final administrative appeal decision/payment effectuation All steps - initial, recon, hearing, A/C Medical, non-medical aspects, auxiliaries included DISABILITY RE-ENGINEERING TEAM Started October 4 18 members People with and without disability experience High level report by March 31 to the Commissioner Executive Steering Committee overseeing effort 4 SCOPE OF PROJECT Keep disability definition as it stands Not addressing vocational rehabilitation Post eligibility continuing disability reviews not included ALJs presiding over an administrative hearing IT WORKLOAD EXPLOSION 1994 1993 1989 Initial 2.7 M 2.5 M 1.7 M Recon 777 T 755 T 526 T ALJ 522 T 509 T 291 T A/C 75 T 66 T 50 T AM ALLOWANCE RATES 1993 1992 INITIAL 39% 43% RECON 14% 17% ALJ 75% 75% NOTE: 20% ON-THE-RECORD A/C 4% (27% REMAND) 5% (35% REMAND) COURT 13% (42 REMAND) 12% (39% REMAND) OBJECTIVES TO BE MEASURED Make the right decision (with awareness of program costs) Make the decision as quickly as possible Make the decision as efficiently as possible Make the process as "user-friendly" as possible for claimants, employees and third parties SSA'S BUSINESS PROCESS REENGINEERING FEB-16-94 WED 13:45 Phase 1 Phase 2 Phase 3 Phase 4 Project Planning Develop Evaluate Implement High Level and Decide Process Redesign Redesign Improvements/ Innovations Select process Organize team Public dialogue/ Implement process feasibility improvements Establish Benchmarking analysis parameters Initial implemen- Process analysis Work with tation sites oversight groups/ Process redesign unions/States Decision point #2 Cost/benefit Develop detailed Implement process analysis design document innovations Complete redesign Decision point #1 paper FAX NO. 00000000000000000000 P. 03 PROCESS ANALYSIS Analyze "as is" process Conduct internal/external scans Obtain public focus group results SITE VISIT ACCOMPLISHMENTS Conducted 3,000 + interviews: front-line employees, managers, and executives SITE VISIT ACCOMPLISHMENTS Visited 367 sites in 29 states -- 10 regional offices -- 63 field offices/teleservice centers -- 37 state disability determination services -- 27 hearing offices -- 9 large installations -- SSA central office SITE VISIT ACCOMPLISHMENTS 625 + parties external to SSA -Medical community -Legal aid --Advocates --Interest groups -Executive Branch and congress'onal stakeholders FEEDBACK: INTERNAL AND EXTERNAL SCANS Fragmented process results in poor service to disability applicants Reconsideration process and results viewed with little confidence Face-to-face contact is controversia Layers zt DLT pale. Claimants could assume more responsibility FEEDBACK: INTERNAL AND EXTERNAL SCANS Higher ALJ allowance rates result in perception of differing standards at appeals and DDS levels Current quality review system could be improved Role of Appeals Council should change VIVI FEEDBACK: FOCUS GROUPS Wait too long for a decision Do not understand the program or the process View initial and reconsideration denials as bureaucratic precursors to final approval at the ALJ level FEEDBACK: FOCUS GROUPS Resent hiring and paying an attorney to maneuver through the process Want more active involvement in pursuit of claim THE LAW OFFICES OF ALLAN IANNACONE HEREFORD LAW CENTER presents seminar on "Myths About Social Security Disability Claims" February 17, 1994, 7:30-9:00 p.m. "There's no point in trying because I've already been denied. Social Security is well known for initially denying meritorious claims that later are approved by an Administrative Law Judge. Don't let a bureaucrat determine your future. Keep appealing until you get a judge. "I've appealed once and lost, so there's no point in appealing again. Social Security disability claims have to be appealed twice in order to get an Administrative Law Judge. The first appeal is decided only by another bureaucrat. Keep appealing until you get a judge. "Social Security disability is only for people who on't be able to work for the rest of their lives. Not true. Social Security disability is for perosn who have been or are expected to be disabled for a yes: or more. Benefits can be awarded for a closed period if you successfully return to work. "I can't afford to pay a lawyer to help me. Wrong. Lawyers are not allowed to charge up front for Social Security disability claims. Under federal regulations, a lawyer is not owed any fee unless you win. If you do win, then the governments pays your lawyer 25% of the money that it owes you for past due benefits, up to a maximum of $4,000. Call for Reservations Hereford Center 329-6822 Suite 200 Above Library Limited Seating in Hereford on York Rd. EMPLOYEE FEEDBACK Need more staff Process is broken Nothing will happen Pleased to be asked for input EMPLOYEE EXPECTATIONS Maximize skills through empowerment Better working environment with adequate staffing No forced reassignments, downsizi ng or RIFs Simplification Career opportunities NOTE FOR ATTENDEES OF FRIDAY DISABILITY MEETING WITH ALICE RIVLIN From: Matt Miller Date: February 3, 1994 Re: Agenda Here's an agenda and an attached two-pager for you to read before the meeting. February 4, 1994 DI AND SSI OUTLAY GROWTH Outlays, 1978 to 1995 ($ billions) 1978 1980 1985 1990 1995E DI 12.3 14.9 18.8 24.3 40.6 SSI 5.2 5.9 8.6 11.5 26.1 TOTAL 17.5 20.8 27.4 35.8 66.7 Compound annual growth rates - percent Both DI Only SSI Only 1978-1995 8.2 7.3 9.9 1985-1995 9.3 8.0 11.7 1990-1995 13.0 10.8 17.8