When the term backlog is used when discussing a Social Security disability case it usually meant the backlog of cases that were waiting for a hearing before an Administrative Law Judge (ALJ). Claimants were waiting sometimes 18 months or longer before they could appear before an ALJ, but Social Security has improved wait times for hearings and now there is another problem.
The backlog problem is now at the initial application level and Social Security officials are indicating the COVID-19 pandemic played a large part in creating this backlog. Since March of 2020 Social Security offices closed to the public and it slowed things down. One area this we most evident was at Disability Determination Services (DDS), the state agencies that issue decisions on initial disability applications. President Joe Biden’s plan to increase Social Security funding could have a direct impact on the backlog. Below is an outline of how Social Security might be able to solve the problem with increased funding.
To Problem
Disruptions due to the pandemic caused a backlog of initial disability cases. Between September 2019 and April 2021, the backlog grew by approximately 115,000 cases. While applications for benefits were lower than we projected prior to the pandemic, our pending level of cases rose significantly because we were not able to complete as many cases. It was difficult to complete disability cases due to a reduced number of medical providers to conduct CEs, an inability to reach individuals by phone, and a lag in receiving mailed documents. These factors, along with the operating adjustments made to safely serve the public, reduced our ability to complete our workloads and contributed to increased backlogs and wait times.
The Solution
We must work down this backlog while also handling an increase in disability applications that we project to see in the second half of FY 2021 and in FY 2022. We received nearly 190,000 fewer applications in FY 2020 than we expected. We expect many of these individuals to apply for benefits as we emerge from the pandemic. During the pandemic, some people may have been isolated from the community groups who would normally assist them and provide them with information about our programs. We are conducting outreach to reach these vulnerable communities who may be eligible.
In FY 2021, we are replacing DDS staff losses and providing an additional 1,300 hires to position the DDSs to address the disability claims backlog and a potential spike in claims. The Budget will support maintaining these new hires in FY 2022 and fund increased overtime for a total FY 2022 increase of nearly 1,400 work years or 10 percent, allowing us to significantly increase our capacity to process disability claims. Compared to FY 2020, we plan to complete nearly 300,000 more claims in FY 2021 and over 700,000 more claims in FY 2022. However, the backlog will continue to grow until we work through the influx of initial claims, which will require a multi-year effort.
