Congress managed to pass a short-term fix to prevent a 19% benefit cut that was due to hit disabled Social Security beneficiaries by the end of this year. The legislation heads off the cut by temporarily transferring some payroll tax revenues over the next three years, expanding measures to better ensure medical eligibility for benefits, and by preventing improper payments due to fraudulent work. The stronger eligibility and anti-fraud provisions are strongly supported by TSCL, incorporating several recommendations that TSCL presented last fall to the House Ways and Means Subcommittee on Social Security. The legislation:
- Expands disability investigation units effective Feb 1, 2016.
- Excludes medical documentation from doctors or healthcare providers convicted of fraud or excluded from participation in federal health care programs.
- Includes new and stronger penalties for Social Security fraud by attorneys, physicians, and others who receive fees for advising disability applicants.
- Prohibits benefits for disability beneficiaries found guilty of fraudulently concealing work.
- Provides better payroll data collection to reduce improper payments due to work.
While TSCL supports this first legislative step, more work will be needed in the years ahead to provide greater financial certainty for disabled Social Security recipients. What do you think about the recent legislation and fixes for Social Security disability? Take TSCL’s 2016 Senior Survey.
