Legal News

Several new Social Security scams are being used to obtain personal information from people as reported by the Detroit Free Press. Below we chronicle each of the new scams and how they are targeting individuals. Medicare Cards Social Security has been announcing that new Medicare cards are being sent out to millions of Americans, something scammers have latched on to and began contacting people informing they must pay for their new Medicare card. This obviously is not true as the Medicare cards issued are free of charge. The roll-out of new Medicare cards began in April and has already been completed in some states. The roll-out will continue until all 58 million Medicare beneficiaries receive their new cards by April of 2019. The government is taking this scam seriously even running TV commercials to warn about potential fraud and urging people with questions to go to the Medicare website. Reactivating Your Social Security Number Another scam is focusing on targeting seniors by phone to inform that their Social Security number has been suspended due to suspected fraudulent activity. To rectify this situation and reactive Social Security numbers, scammers request personal information, including banking information. A similar type of scam utilizes robocalls informing citizens their Social Security assets will be frozen unless they contact the scammers and provide identifying information. Medicare Is Not Sending You $200 Even when we know something is too good to be true we still sometimes seek it out. That is the danger of another new scam where consumers have reported receiving calls from people who claim to be from Medicare claiming they are giving away $200 for being a good citizen. Obviously this sounds preposterous, but when someone is presented with free money, judgment can be clouded. To receive this free gift of $200 all that is needed is providing a bank account number.

After a Supreme Court ruling was released earlier this year that seemed to limit the authority of Administrative Law Judges (ALJs), President Donald Trump issued an Executive Order changing how ALJs were appointed. The order gave broad authority to agency and department heads to appoint ALJs, but a congressional Conference Committee is saying that the order is wrong and ALJs should be reviewed, tested and appointed based on merit. A conference committee is appointed by the U.S. House of Representatives and U.S. Senate and made-up of members from both bodies and both parties to resolve disagreements. A joint explanatory statement of the conference committee was released indicating congress would protect the integrity of the ALJ appointment process. The committee’s statement regarding ALJs is immediately below. “Administrative Law Judges – It is vital that Administrative Law Judges (ALJs) be independent, impartial, and selected based on their qualifications. The conferees expect SSA to maintain a high standard for the appointment of ALJs, including the requirement that ALJ s have demonstrated experience as a licensed attorney and pass an ALJ examination administered by the Office of Personnel Management.” The committee’s strong statement regarding how ALJs are appointed should play a major factor in the process of hiring new ALJs at the Social Security Administration. The topic of ALJs was not the only Social Security subject the committee made recommendations on. The committee also wants information of how Social Security administers Consultative Examinations (CEs). Typically, medical determination agencies setup CEs for disability applicants when there is not enough medical evidence available in a case to make a decision. The committee wants information related to how many CEs are being ordered, the percentage of applicants who are sent to CEs and the total cost associated with these CEs. For more information about the conference committee’s statements click here.  

The Subcommittee on Tax Policy, Health, Social Security, and Oversight scheduled the markup of several bills June 21 including the Tribal Social Security Fairness Act of 2018. When legislators “markup” a bill it is a process of session debates, amendments and rewrites of proposed legislation. The origination of the bill amended Social Security Title II (Old Age, Survivors, and Disability Insurance) of the Social Security Act to direct the Social Security Administration, at the request of an Indian tribe, to enter into an agreement with the tribe for the purpose of extending Social Security coverage to tribal council members. Below is the purpose of this agreement. VOLUNTARY AGREEMENTS FOR COVERAGE OF INDIAN 8 TRIBAL COUNCIL MEMBERS 9 ‘‘Purpose of Agreement 10 ‘‘SEC. 218A. (a)(1) The Commissioner of Social Security shall, at the request of any Indian tribe, enter into 12 an agreement with such Indian tribe for the purpose of 13 extending the insurance system established by this title to 14 services performed by individuals as members of such Indian tribe’s tribal council. Any agreement with an Indian 16 tribe under this section applies to all members of the tribal 17 council, and shall include all services performed by individuals in their capacity as council members. 19 ‘‘(2) Notwithstanding section 210(a), for the purposes of this title, the term ‘employment’ includes any 21 service included under an agreement entered into under 22 this section. This is a continued effort ever since an executive order was signed by President Bill Clinton in November of 2000. The original initiatives of this order and Social Security were to: Improve service delivery by responding to policy and legislative proposals; Maintain and expand ongoing communication; Outreach to the tribal community military service members, veterans, and families; and Continuing outreach and tribal consultation efforts.

Social Security has added a new online tool where disability claimants can file an appeal of an unfavorable decision they receive from an Administrative Law Judge (ALJ). All appeals of ALJ decisions are considered by the Appeals Council. Prior to this an appeal of an ALJ decision could only be filed by mail or fax. Below is Social Security’s announcement of the new process. We are pleased to announce a new online process for filing a Request for Review of an Administrative Law Judge (ALJ) hearing decision or dismissal (i520). The new online i520 process accepts both medical (disability) and non-medical (non-disability) appeals of an ALJ hearing decision or dismissal. There are many benefits to using the new i520. Requests for review at the Appeals Council can be filed online. The online appeals application is simple, convenient, and secure; it guides claimants and their appointed representatives through every step of the process, including uploading any necessary documentation. The HA-520 and documents are automatically routed to the correct branch in the Office of Appellate Operations, which improves the appeals process. While the preferred method for filing a Request for Review is the new online i520 process, we will continue to accept requests by mail or fax. Please be sure not to submit multiple review requests by filing online and also by mail or fax, as it could delay processing. Additionally, please note that this new online process cannot be used to request an extension of time to file a civil action, Federal court review, or an ALJ decision in a case remanded by a Federal court. The new online appeal should ensure that fewer appeals are not registered due to lost paperwork, so this is a step in the right direction. To checkout the new online Appeals Council process click here.

Congress established the Social Security Disability Insurance (SSDI) program in 1956 after more than 20 years of debate. Prior to 1956 there was no safety net for people who became disabled and were unable to work. Despite substantial opposition to SSDI, Congress managed to establish one of the most important social programs in the country’s history. Now, more than 60 years later it’s worth examining how today’s SSDI program compares to what Congress envisioned in 1956. When it was introduced there was agreement that SSDI should be for workers who had substantial work histories that would be paid for through payroll taxes to offer “modest” benefit levels. Congress also made SSDI difficult to obtain by including stringent disability criteria to meet before approval. Back in 2015 Social Security released an issue paper examining how closely the program has lived up to Congress’ vision back in 1956, which can be found here. The issue paper concluded that today’s Social Security looks pretty close to how the program was first intended to look. According to the issue paper, “as the DI program’s designers intended, most disabled-worker beneficiaries are older; the majority of them are aged 50 or older when they start receiving benefits. The program’s strict eligibility standards are reflected in the high mortality rate among beneficiaries within 5 years of starting benefits. Its goal of providing only the most basic of benefits is reflected in the fact that the average benefit level remains less than one-third of the national AWI and only slightly above the federal poverty line. Although the Social Security DI program has grown and adjusted to meet the demographic changes in the United States since 1956, it also succeeds in dutifully following the core tenets that Congress established for it nearly 60 years ago.”  

Social Security taxes do not necessarily apply to all income earned. All self-employment income and wages that are covered by Social Security are taxed up to a certain amount, which is set by law. Since 1937 Social Security has set a maximum taxable earnings amount, which started at $3,000. Today the maximum taxable earnings amount is $128,400. Below, we take a look at maximum taxable earnings and how it has changed over the years. Maximum Taxable Earnings (1937 – 2018) When you have wages or self-employment income that is covered by Social Security, you pay Social Security taxes each year up to a maximum amount that is set by law. That amount has changed frequently over the years. For 2018, the maximum amount of taxable earnings is $128,400. You now pay Medicare taxes on all your wages and your net profit from self-employment. The maximum earnings for each year since Social Security taxes were first collected in 1937 can be found here. If you: earned more than the maximum in any year but had only one job, the amount we use will be just the maximum amount. had more than one job, the total that is recorded may be more than the maximum. However, we only use the maximum amount to calculate your benefit estimates. When you have more than one job in a year, each of your employers must withhold Social Security taxes from your wages without regard to what the other employers may have withheld. You may then end up with total Social Security taxes withheld that exceed the maximum. Example: In 2018, you worked at company A and earned $70,000 before you switched employers. At company B, you earned $65,900. Social Security taxes would be withheld from the $135,900 you earned in 2018, but the maximum taxable earnings for the year are only $128,400. You claimed a refund of the Social Security taxes withheld from the last $7,500 in earnings when you filed your 2018 personal income tax return with the Internal Revenue Service (IRS).