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SOCIAL SECURITY IS IN CRISIS

IT'S TIME TO RESTORE THE OPERATING BUDGET BACK TO 2010 LEVELS


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The current situation for Americans relying on social security is dire. "Given the fact that Congress has reduced our staff to a 25-year low, there's a huge backlog with now more people dying — 30,000 [in 2023], according to our actuary — as they await their initial disability determination," Social Security Commissioner Martin O'Malley told AARP during a June 10, 2024 interview. Nearly 110,000 people died waiting for their Social Security disability benefits between 2008 and 2019 (GAO, 2020).

This is a direct threat against the lives of American people. Thousands of Americans are literally being left to die.

 

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Since 2010, the Social Security Administration’s operating budget has shrunk by 19% (counting inflation) and its staff by 11%, while the number of beneficiaries has risen by almost 25%. Baby boomers are turning 65 at a rate of 10,000 a day, and SSA’s staffing is at the lowest level in 25 years. Nine out of ten calls to the SSA go unanswered daily, and Short-term funding cuts from measures like the Continuing Resolution (CR) have forced the SSA to suspend new hires and limit overtime, resulting in huge claims backlogs, longer wait times for beneficiaries, and high turnover as overworked employees leave for less stressful jobs.

 

The current claims wait times are at their worst levels in 14 years and are not just numbers but a human cost. The average wait time to hear back about a claim is eight months, with an additional seven months for those who appeal. Many have endured a year-long wait (Center on Budget and Policy Priorities, 2024). Operations that review claims are facing massive backlogs. In 2023, 1.15 million disability claims were left pending at state disability determination service agencies (including claims at the initial and reconsideration levels). An estimated 8,000 applicants file for bankruptcy yearly while awaiting a decision (USA Facts, 2023).

 


MEDICARE AND SOCIAL SECURITY ARE LINKED TOGETHER

 

Cutting the operating budget for the SSA also impacts Medicare enrollment because the SSA provides information and support to Medicare beneficiaries, helping them understand their benefits and navigate the complexities of the Medicare system.

 

 

While Medicare is a separate program administered by the Centers for Medicare & Medicaid Services (CMS), the Social Security Administration plays a pivotal role in determining eligibility, facilitating enrollment, and managing the financial aspects of Medicare.

The SSA streamlines the enrollment process for Medicare Part A (hospital insurance) and Part B (medical insurance).

The SSA is essential in coordinating Medicare and Social Security benefits. For instance, if a person is eligible for both Social Security and Medicare, their Social Security payments can be used to cover the costs of Medicare premiums and other related expenses.

Individuals under 65 receiving Social Security Disability Insurance (SSDI) benefits are automatically enrolled in Medicare after a 24-month waiting period, with some exceptions for specific conditions. The SSA administers the SSDI program, which makes this automatic enrollment possible.

 


THE HOUSE APPROPRIATIONS COMMITTEE VOTES DOWN AN EFFORT TO RESTORE $450 MILLION IN FUNDING TO SSA

On July 10, 2024, The House Appropriations Committee voted down an effort to restore $450 million in funding to the Social Security Administration (SSA) for fiscal year 2025. The bill is part of the Labor, Health and Human Services, Education, and Related Agencies Appropriations Act. The committee's vote of 31-25 has significant implications for the SSA's operations, which are already understaffed and urgently need more funding. The money set aside in this bill for SSA amounts to an even steeper cut of $1.7 billion compared with President Biden's FY2025 budget request.

"The biggest threat to this agency is actually congressional disregard to the fact that we don’t even have the courtesy of a budget or appropriations hearing for what is the most popular and trusted program in the United States of America. People deserve better.” - Social Security Commissioner Martin O'Malley (April 2024 to Federal News Network)

H.R.9029 - Departments of Labor, Health and Human Services, and Education, and Related Agencies Appropriations Act, 2025  (Congress.Gov)


AFGE FUNDING REQUEST FOR SOCIAL SECURITY

The American Federation of Government Employees (AFGE) has strongly appealed to Congress to adequately fund the Social Security Administration (SSA) to address the growing public demand for services by creating an SSA FY 2025 Funding Request, which was submitted on April 30, 2024. They emphasize that the SSA faces a severe public service crisis marked by deteriorating service levels and staff attrition.

 

Key elements of their request include:

 

$19.2 Billion Supplemental Funding: The AFGE is advocating for a $19.2 billion increase in funding to help the SSA handle its workload and improve services. This additional funding will play a key role in reversing the current decline in service quality and addressing operational challenges.

 

Immediate Need for Workforce Reinforcement: The union underscores the pressing need to recruit more staff to meet the rising service demand, reduce wait times, and enhance customer service. They argue that the current understaffing is unsustainable and detrimental to the public.

 

Importance of Modernizing Technology and Infrastructure: There is a strong call for investments in modernizing the SSA's technological infrastructure. This modernization would significantly streamline operations and enhance the efficiency of service delivery.

 

Enhanced Employee Support: The AFGE points out the necessity of better supporting the SSA workforce through improved working conditions and job security, including addressing telework policies and ensuring adequate breaks and workplace accommodations.

 

Public Awareness Campaigns: They also highlight the importance of public awareness campaigns to inform citizens about the services available and the ongoing challenges the SSA faces.

 

The American Federation of Government Employees (AFGE)

 

AFGE Council 220 (Social Security Field Offices)

 

SSA Fiscal Year 2025 Funding Request (AFGE, April 30,2024)

 


AARP DESCRIBES HISTORICALLY HIGH WAIT TIMES AND BROKEN SERVICES

On January 19, 2023, AARP sent a letter to the Social Security Administration requesting that they shorten wait times and improve since Congress and the Biden Administration had approved a $785 million budget increase for the agency.

AARP members sent Congress more than 200,000 emails urging it to approve more funding for customer service issues amid historically high wait times and a backlog in disability claims. The agency primarily blamed the delays on years of under-staffing and insufficient funds.

Problems have picked up since the advent of Covid 19. Field offices had been shut down for two years since the start of the pandemic. Customers complained of long lines at offices, and busy signals and dropped calls when trying to get through on the national toll-free number.

“Millions of older Americans, people with disabilities, and their families rely on Social Security, and they deserve to receive timely and accurate assistance from the agency,” wrote AARP Chief Advocacy and Engagement Officer Nancy A. LeaMond.

AARP Letter to the Social Security Administration Requesting Shorter Wait Times and Improve Service (PDF)


RELATED ARTICLES:

30,000 died in fiscal 2023 waiting for disability decisions from Social Security (NextGov/FCW, 4-17-24)

Committee Approves FY25 Labor, Health and Human Services, Education, and Related Agencies Appropriations Act (Committee on Appropriations, 7-10-24)

House GOP defeats effort to restore SSA funding to appropriations bill (Government Executive, 7-10-24)

Legislative Spotlight — SSA Funding Update (National Organization of Social Security Claimants Representatives 7-24-24)

Social Security Administration funding cuts a disservice to Americans (The Hill, 7-26-24)

Social Security Chief: Congress Holds Key to Better Customer Service (AARP, 6-10-24)

CX Exchange 2024: SSA’s Martin O’Malley on creating better experiences for the masses (Federal News Network, 4-25-24)

SSA Budget Will Worsen Customer Service Crisis, But Investment in 2025 Could Fund Turnaround (Center on Budget and Policy Priorities, 4-12-24)

Why Social Security Disability Claims Are Taking So Long (AARP, 1-17-24)

 

OLDER RELATED ARTICLES:

Social Security services to degrade further this year despite budget boost, agency's acting head says (Washington Post, 2-18-23)

Social Security is in Crisis (USA Facts, 1-12-23)

Policymakers Must Act to Address Social Security Service Crisis (Center on Budget Policy and Priorities, 5-26-22)

110,000 Americans Have Died Waiting for Benefits (Nextgov, 8-28-20)

Social Security Disability: Information on Wait Times, Bankruptcies, and Deaths among Applicants Who Appealed Benefit Denials (GAO, 8-13-20)

Ex-heads of U.S. Social Security Administration offer plan to fix agency's customer service (Reuters, 6-5-19)

Let's Get Congress Off Social Security's Back (Forbes, 6-11-19)


SOCIAL SECURITY BUDGET

FISCAL YEAR 2025

The President's 2025 fiscal year budget has authorized an increase of $1.3 billion to Social Security's budget. This represents an increase of 9% from the 2023 enacted level. This is not adequate, but an increase is better than no action at all.

Budget of the U.S. Government Fiscal Year 2025 PDF (The White House)

Budget Overview Fiscal Year 2025 PDF (SSA.Gov)

Social Security Budget Estimates (SSA.Gov)


SOCIAL SECURITY UNIONS

The American Federation of Government Employees (AFGE) (Largest at around 96% of employees represented)

AFGE Council 220 (Social Security Field Offices)

AFGE Council Presidents and Executive Boards List

The National Federtion of Federal Employees (NFFE)

The National Treasury Employees Union (NTEU)


KEY GROUPS FIGHTING TO RESTORE SOCIAL SECURITY BUDGET CUTS

Social Security Works          Center on Budget and Policy Priorities  

National Committee to Preserve Social Security and Medicare     AARP


MEDICARE AND SOCIAL SECURITY ADMINISTRATION INFORMATION

To enroll in Medicare,call the SSA at 1-800-772-1213 or visit their website. The SSA representatives can help you with the Medicare enrollment process and answer your questions about Medicare eligibility, coverage, premiums, and other related issues.

It's worth noting that there is a separate phone line for Medicare questions and support, which is available at 1-800-MEDICARE (1-800-633-4227). This line is operated by the Centers for Medicare & Medicaid Services (CMS), which is the federal agency that oversees the Medicare program.

The Social Security Administration

Medicare.Gov