U.S. GOVERNMENT PRINTING OFFICE

WASHINGTON : 

For sale by the Superintendent of Documents, U.S. Government Printing Office

Internet: bookstore.gpo.gov Phone: toll free (866) 512–1800; DC area (202) 512–1800

Fax: (202) 512–2104 Mail: Stop IDCC, Washington, DC 20402–0001

78–762 2013

USE OF TECHNOLOGY TO 

IMPROVE THE ADMINISTRATION OF 

SSI’S FINANCIAL ELIGIBILITY REQUIREMENTS 

HEARING 

BEFORE THE

SUBCOMMITTEE ON HUMAN RESOURCES 

OF THE

COMMITTEE ON WAYS AND MEANS 

U.S. HOUSE OF REPRESENTATIVES 

ONE HUNDRED TWELFTH CONGRESS 

SECOND SESSION 

JULY 25, 2012 

Serial No. 112–HR15 

Printed for the use of the Committee on Ways and Means 

( 


dkrause on DSKHT7XVN1PROD with HEARING
ii 

COMMITTEE ON WAYS AND MEANS 

DAVE CAMP, Michigan, Chairman 

WALLY HERGER, California 

SAM JOHNSON, Texas 

KEVIN BRADY, Texas 

PAUL RYAN, Wisconsin 

DEVIN NUNES, California 

PATRICK J. TIBERI, Ohio 

GEOFF DAVIS, Kentucky 

DAVID G. REICHERT, Washington 

CHARLES W. BOUSTANY, JR., Louisiana 

PETER J. ROSKAM, Illinois 

JIM GERLACH, Pennsylvania 

TOM PRICE, Georgia 

VERN BUCHANAN, Florida 

ADRIAN SMITH, Nebraska 

AARON SCHOCK, Illinois 

LYNN JENKINS, Kansas 

ERIK PAULSEN, Minnesota 

KENNY MARCHANT, Texas 

RICK BERG, North Dakota 

DIANE BLACK, Tennessee 

TOM REED, New York 

SANDER M. LEVIN, Michigan 

CHARLES B. RANGEL, New York 

FORTNEY PETE STARK, California 

JIM MCDERMOTT, Washington 

JOHN LEWIS, Georgia 

RICHARD E. NEAL, Massachusetts 

XAVIER BECERRA, California 

LLOYD DOGGETT, Texas 

MIKE THOMPSON, California 

JOHN B. LARSON, Connecticut 

EARL BLUMENAUER, Oregon 

RON KIND, Wisconsin 

BILL PASCRELL, JR., New Jersey 

SHELLEY BERKLEY, Nevada 

JOSEPH CROWLEY, New York 

JENNIFER SAFAVIAN, Staff Director 

JANICE MAYS, Minority Chief Counsel 

SUBCOMMITTEE ON HUMAN RESOURCES 

GEOFF DAVIS, Kentucky, Chairman 

ERIK PAULSEN, Minnesota 

RICK BERG, North Dakota 

TOM REED, New York 

TOM PRICE, Georgia 

DIANE BLACK, Tennessee 

CHARLES W. BOUSTANY, JR., Louisiana 

LLOYD DOGGETT, Texas, Ranking 

JIM MCDERMOTT, Washington 

JOHN LEWIS, Georgia 

JOSEPH CROWLEY, New York 

Pursuant to clause 2(e)(4) of Rule XI of the Rules of the House, public hearing records 

of the Committee on Ways and Means are also published in electronic form. The printed 

hearing record remains the official version. Because electronic submissions are used to 

prepare both printed and electronic versions of the hearing record, the process of converting 

between various electronic formats may introduce unintentional errors or omissions. Such occurrences are inherent in the current publication process and should diminish as the process 

is further refined. 


dkrause on DSKHT7XVN1PROD with HEARING
iii 

C O N T E N T S 

Page 

Advisory of July 25, 2012, announcing the hearing .............................................. 2 

WITNESSES 

Carolyn W. Colvin, Deputy Commissioner, Social Security Administration ...... 7 

Patrick P. O’Carroll, Jr., Inspector General, Social Security Administration .... 42 

Paul F. Soczynski, Director of Government Services, Accuity Solutions ............ 50 

Marty Ford, Director, Public Policy Office, The Arc of the United States .......... 57 

Douglas J. Besharov, Professor, School of Public Policy, University of Maryland ........................................................................................................................ 66

SUBMISSIONS FOR THE RECORD 

Carolyn Colvin, statement ...................................................................................... 95 


dkrause on DSKHT7XVN1PROD with HEARING

dkrause on DSKHT7XVN1PROD with HEARING
(1) 

USE OF TECHNOLOGY TO 

IMPROVE THE ADMINISTRATION OF 

SSI’S FINANCIAL ELIGIBILITY REQUIREMENTS 

WEDNESDAY, JULY 25, 2012 

U.S. HOUSE OF REPRESENTATIVES, COMMITTEE ON WAYS AND MEANS, SUBCOMMITTEE ON HUMAN RESOURCES, Washington, DC. 

The Subcommittee met, pursuant to notice, at 3:03 p.m., in Room 

1100, Longworth House Office Building, Hon. Geoff Davis [Chairman of the Subcommittee] presiding. 

[The advisory announcing the hearing follows:] 


dkrause on DSKHT7XVN1PROD with HEARING
2 

ADVISORY 

FROM THE COMMITTEE ON WAYS AND MEANS 

SUBCOMMITTEE ON HUMAN RESOURCES 

FOR IMMEDIATE RELEASE CONTACT: (202) 225–1721 

Wednesday, July 25, 2012 

HR–15 

Chairman Davis Announces a Hearing on the 

Use of Technology to Improve the Administration 

of SSI’s Financial Eligibility Requirements 

Congressman Geoff Davis (R–KY), Chairman of the Subcommittee on Human Resources of the Committee on Ways and Means, announced today that the Subcommittee will hold a hearing on the use of technology to improve the administration of the Supplemental Security Income (SSI) program’s financial eligibility requirements. The hearing will take place on Wednesday, July 25, 2012 in 1100 

Longworth House Office Building, beginning at 3:00 p.m. 

In view of the limited time available to hear witnesses, oral testimony at this 

hearing will be from invited witnesses only. However, any individual or organization 

not scheduled for an oral appearance may submit a written statement for consideration by the Committee and for inclusion in the printed record of the hearing. 

BACKGROUND: 

The Supplemental Security Income (SSI) program is the Nation’s largest Federal 

means-tested cash assistance program and is administered by the Social Security 

Administration (SSA). Unlike the Social Security Disability and Retirement programs, which require sufficient past employment covered by Social Security payroll 

taxes for eligibility, the SSI program pays benefits to disabled and elderly individuals who currently have limited income and assets, regardless of prior work history, 

using general revenue funds. 

In 2012, the SSI program provides monthly cash payments up to $698 per individual or $1,048 per couple, which typically includes eligibility for Medicaid to cover 

health expenses. In December 2011, SSI provided cash assistance to more than 8.1 

million children, adults, and aged individuals at an annual cost of over $49.5 billion, 

not including Medicaid expenses. According to the SSA actuaries, the SSI program 

is expected to grow by 1 million recipients in the next decade, with the largest 

growth coming among those over the age of 65. 

Since the program was created in 1972, SSI has applied financial eligibility requirements to all recipients, primarily in the form of monthly income and asset tests 

designed to ensure that individuals do not have significant current income or assets 

on which they should depend before turning to the program for support. For income, 

an individual’s actual monthly benefit is determined by taking the Federal SSI benefit and subtracting countable wages and other income received during a month 

(generally up to $1,481 per month for an individual with income only from wages). 

If countable income is not reported in a timely manner, it can cause an overpayment 

that is typically recovered from an individual’s future benefits. Separately, a recipient’s assets must remain below $2,000 for an individual or $3,000 for a couple to 

maintain eligibility. Like income, certain items are countable, such as cash, liquid 

assets in a bank account, or property that can be sold; other assets are not counted, 

such as the value of a primary residence, car, or burial plot. 

The administration of these financial eligibility requirements can be difficult and 

error-prone if done manually and based on recipient-reported data. For fiscal year 

2011, the SSI program had a 9.1 percent error rate, representing $4.6 billion in imVerDate Mar 15 2010 08:06 Mar 04, 2013 Jkt 078762 PO 00000 Frm 00006 Fmt 6633 Sfmt 6621 I:\WAYS\OUT\78762.XXX 78762

dkrause on DSKHT7XVN1PROD with HEARING
3 

proper payments. To address this longstanding issue, SSA continues to look for 

ways to use technology to reduce error rates. This includes automated processing 

such as its Access to Financial Institutions (AFI) project, which attempts to confirm 

asset data reported by recipients with actual financial institution records. Through 

this and other automation efforts, SSA is expected to achieve significant program 

savings and has already reduced the SSI error rate by 17 percent in the last 2 

years, even as overall benefit outlays have increased. 

In announcing the hearing, Chairman Geoff Davis (R–KY) stated, ‘‘The SSI program provides important financial support for low-income families with 

disabled children, disabled adults, and aged individuals. Especially in a restricted financial environment, we need to ensure SSA is using technology 

to its fullest to administer these benefits in an automated, reliable, and efficient manner. This hearing will review what progress SSA has been making on that front, which is essential to targeting limited taxpayer resources 

to those with the most financial need.’’ 

FOCUS OF THE HEARING: 

The hearing will review SSI financial eligibility requirements and the use of technology to improve their administration. 

DETAILS FOR SUBMISSION OF WRITTEN COMMENTS: 

Please Note: Any person(s) and/or organization(s) wishing to submit for the hearing record must follow the appropriate link on the hearing page of the Committee 

website and complete the informational forms. From the Committee homepage, 

http://waysandmeans.house.gov, select ‘‘Hearings.’’ Select the hearing for which you 

would like to submit, and click on the link entitled, ‘‘Click here to provide a submission for the record.’’ Once you have followed the online instructions, submit all requested information. ATTACH your submission as a Word document, in compliance 

with the formatting requirements listed below, by the close of business on Friday, August 3, 2012. Finally, please note that due to the change in House mail 

policy, the U.S. Capitol Police will refuse sealed-package deliveries to all House Office Buildings. For questions, or if you encounter technical problems, please call 

(202) 225–1721 or (202) 225–3625. 

FORMATTING REQUIREMENTS: 

The Committee relies on electronic submissions for printing the official hearing record. As always, submissions will be included in the record according to the discretion of the Committee. 

The Committee will not alter the content of your submission, but we reserve the right to format 

it according to our guidelines. Any submission provided to the Committee by a witness, any supplementary materials submitted for the printed record, and any written comments in response 

to a request for written comments must conform to the guidelines listed below. Any submission 

or supplementary item not in compliance with these guidelines will not be printed, but will be 

maintained in the Committee files for review and use by the Committee. 

1. All submissions and supplementary materials must be provided in Word format and MUST 

NOT exceed a total of 10 pages, including attachments. Witnesses and submitters are advised 

that the Committee relies on electronic submissions for printing the official hearing record. 

2. Copies of whole documents submitted as exhibit material will not be accepted for printing. 

Instead, exhibit material should be referenced and quoted or paraphrased. All exhibit material 

not meeting these specifications will be maintained in the Committee files for review and use 

by the Committee. 

3. All submissions must include a list of all clients, persons and/or organizations on whose 

behalf the witness appears. A supplemental sheet must accompany each submission listing the 

name, company, address, telephone, and fax numbers of each witness. 

The Committee seeks to make its facilities accessible to persons with disabilities. 

If you are in need of special accommodations, please call 202–225–1721 or 202–226– 

3411 TDD/TTY in advance of the event (four business days notice is requested). 

Questions with regard to special accommodation needs in general (including availability of Committee materials in alternative formats) may be directed to the Committee as noted above. 


dkrause on DSKHT7XVN1PROD with HEARING
4 

Note: All Committee advisories and news releases are available on the World 

Wide Web at http://www.waysandmeans.house.gov

f 

. 

* * * CHANGE IN TIME * * * 

ADVISORY 

FROM THE COMMITTEE ON WAYS AND MEANS 

SUBCOMMITTEE ON HUMAN RESOURCES 

FOR IMMEDIATE RELEASE CONTACT: (202) 225–1721 

Wednesday, July 25, 2012 

HR–15 

Change in Time for Hearing on the 

Use of Technology to Improve the Administration 

of SSI’s Financial Eligibility Requirements 

Congressman Geoff Davis (R–KY), Chairman of the Subcommittee on Human Resources of the Committee on Ways and Means, today announced that the Subcommittee hearing on the use of technology to improve the administration of the 

Supplemental Security Income (SSI) program’s financial eligibility requirements, 

previously scheduled for 3:00 p.m. on Wednesday, July 25, 2012, in 1100 Longworth 

House Office Building, will now be held at 2:00 p.m. 

All other details for the hearing remain the same. (See Subcommittee on Human 

Resources Advisory No. HR–15, dated July 25, 2012.) 

f 

Chairman DAVIS. Good afternoon. Thank you to our witnesses, 

staff members, and visitors for your patience. Unfortunately, we 

don’t control the whip’s schedule for votes. I appreciate your forbearance in the unanticipated delay. 

In today’s hearing we are going to review how technology is 

being used to improve the administration of the Supplemental Security Income, or SSI, program. As the Nation’s largest Federal 

means-tested cash assistance program, SSI is sometimes called 

‘‘the other welfare.’’ Last month SSI provided checks to more than 

8.1 million disabled and aging individuals. For example, that is almost twice as many people as collect welfare checks under the 

TANF program. 

Unlike other Social Security programs which require prior work 

and payroll tax payments, SSI pays monthly checks to disabled and 

elderly individuals with limited income and assets regardless of 

whether they have worked in the past. Since SSI was created in 

1972, it has had complex eligibility rules designed to ensure that 

recipients do not have significant income or assets on which they 

should depend before turning to SSI for support. How these financial eligibility requirements are working and how their administration can be improved are the subjects of today’s hearing. 

It is worth noting that in contrast to other means-tested programs like food stamps, SSI has continued to enforce these financial eligibility standards in recent years, which has helped to keep 


dkrause on DSKHT7XVN1PROD with HEARING
5 

SSI’s growth in check. The administration of SSI’s financial eligibility requirements can be difficult, prone to error, and extremely 

time-consuming, draining administrative resources, especially if 

done manually and using recipient-reported data. In 2011, SSI had annual payments totaling almost $50 billion, 

not including the cost of Medicaid benefits typically provided to SSI 

recipients. It also had a 9.1 percent error rate, representing a staggering $4.6 billion in improper payments. As I have described in 

previous hearings, we can and should expect more from government. We should expect it to administer benefits using 21st century technology, not from the era before the personal computer existed. 

We have made significant progress in the past year and a half 

enacting into law our data standards provision to jump-start a 

process for defining these standards. And I am very grateful for the 

true bipartisanship in which Members of the Republican and 

Democratic Caucus worked together to give the tools to repair 

these broken processes and bring some private-sector business 

practices into government. 

I believe that SSA can and should significantly contribute to this 

process. What is more, I believe SSA will also greatly benefit from 

this effort, and it will improve how they administer all their workloads, including SSI. This is all part of a larger goal of leveraging 

technology to prevent improper payments of all kinds. 

Today we will hear about how SSA has expanded nationwide the 

Access to Financial Institutions Project, AFI, along with other efforts to better use technology. These efforts have shown that while 

difficult, income and asset tests can be administered in a timely 

and cost-effective manner, improving program efficiency and reducing cost to taxpayers. That is an important lesson not just for SSI, 

but across all means-tested Federal programs. 

For example, other programs, like food stamps, have recently 

waived these same sorts of complex eligibility rules, especially 

asset tests, to speed eligibility determination and expand benefit 

payouts. As a result, today one in seven Americans is eligible for 

food stamps, at a cost of over $70 billion in 2011. That is triple the 

level of food stamp spending in 2002, when the asset test was consistently applied. 

In a time of failed stimulus, out-of-control spending, and a struggling economy, we can’t continue on the current fiscal path. Efficient enforcement of programs—or efficient enforcement of income 

and asset tests across means-tested programs will make it possible 

for limited taxpayer resources to be targeted to those with the 

greatest financial need. In this, we hope the SSI program can actually show the way. 

We look forward to all the testimony today and to working to improve how this program serves disabled and elderly individuals 

who depend on it, as well as ensuring all means-tested programs 

efficiently and effectively use tax dollars. 

With that, I would like to yield to my friend from Texas, the 

Ranking Member Mr. Doggett, to make an opening statement. 

Mr. DOGGETT. Thank you very much, Mr. Chairman. 

We have worked together on this Subcommittee to ensure safetynet programs effectively collect and use the information to deterVerDate Mar 15 2010 08:06 Mar 04, 2013 Jkt 078762 PO 00000 Frm 00009 Fmt 6633 Sfmt 6602 I:\WAYS\OUT\78762.XXX 78762

dkrause on DSKHT7XVN1PROD with HEARING
6 

mine eligibility. Because Supplemental Security Income provides 

modest benefits to aid individuals with disabilities, seniors, disabled children, our most vulnerable neighbors, it is critical that the 

Social Security Administration uses the most up-to-date technology 

to fully administer the benefits in the most efficient manner and 

ensure that only those individuals entitled to this important benefit 

receive it. 

But our goal of improving the integrity of SSI as well as other 

programs is severely threatened by the Republican Appropriations 

Committee, which would cut about a billion dollars from the Social 

Security Administration. This comes after cuts in each of the last 

2 years for Social Security, and this includes moneys that are essential for combating waste, fraud, and abuse. I believe that this 

cut means that there will be fewer SSI redeterminations, and there 

will be less available for other program integrity measures. 

Every dollar that is invested in SSI eligibility and disability re- views has produced between $6 and $9 in program savings. Cutting 

funding threatens the integrity of these programs. 

Ensuring an effective SSI program is important to over 8 million 

senior and disabled Americans who receive important assistance 

from the program. These benefits are not overly generous, with the 

maximum SSI payment providing less than $700 a month for an 

individual, which reaches less than 75 percent of the poverty level. 

But even at these low levels, this assistance is a vital lifeline for 

those who have little other source of income. 

In my home State of Texas, over 600,000 of our neighbors are 

helped by SSI, including about 55,000 in Bexar County and 17,000 

in Travis County. One of these people is a 37-year-old woman who 

has Angelman syndrome, which includes cerebral palsy, seizures, 

and profound cognitive impairments. She lives in a group home 

with other adult women and comes home to stay with her mother 

3 days a week. Her mother says, in these words: ‘‘Without the option of community living, she would be at home. I would be unable 

to care for her and would be unable to work. We would be destitute. Her only other option would be a State institution, which is 

unthinkable.’’ 

As we review current efforts to verify SSI eligibility, we should 

also consider steps to help SSI recipients comply with program requirements, especially when they attempt to go to work. We could 

take a major step in that direction by increasing the value of work 

for SSI recipients. The amount of wages that an SSI recipient can 

earn before losing some of their benefits has not been increased 

since this program was first started in 1974, at a time when gas 

was 50 cents a gallon and the median household income was about 

$11,000 a year. There is a real need to make a change there. If this 

earnings exclusion had kept pace with inflation over the last four 

decades, it would be well over $300 a month now instead of a mere 

$65 a month. Raising the current threshold would not only promote 

and reward work, but it would also reduce SSI overpayments to individuals earning very small amounts from employment. 

Another step that we should take is to continue an expiring program that helps SSI beneficiaries navigate program rules when 

they attempt to go to work. Since 2000, the Work Incentives Planning and Assistance program has served nearly half a million SSI 


dkrause on DSKHT7XVN1PROD with HEARING
7 

and SSDI recipients who are working or attempting to work, but 

the program is now expiring, and Congress, as with so many other 

areas, has failed to act. 

I recently joined Congressman Becerra in introducing legislation 

to extend this program and a related one so that we help SSI recipients understand and comply when they move into work. This 

extension would be funded by the Social Security Administration’s 

basic administration allocation, so taxpayers won’t be out another 

dime to do it. We really need for the House to act on it. 

I look forward to hearing our witnesses’ views on these and other 

issues and continuing to work with you, Mr. Chairman. Thank you. 

Chairman DAVIS. Thank you, Mr. Doggett. 

I would like to remind our witnesses to limit your oral testimony 

to 5 minutes; however, without objection, all the written testimony 

will be included as part of the permanent record. 

On our panel this afternoon, we will be hearing from Ms. Carolyn 

Colvin, Deputy Commissioner of the Social Security Administration; the Honorable Patrick P. O’Carroll, Jr., Inspector General of 

the Social Security Administration; Mr. Paul Soczynski, Director of 

Government Services, Accuity Solutions; Ms. Marty Ford, Director 

of Public Policy, The Arc of the United States; and Mr. Douglas 

Besharov, Professor, School of Public Policy, the University of 

Maryland. 

Ms. Colvin, please proceed with your testimony. 

STATEMENT OF CAROLYN W. COLVIN, 

DEPUTY COMMISSIONER, SOCIAL SECURITY ADMINISTRATION 

Ms. COLVIN. Chairman Davis, Ranking Member Doggett, and 

Members of the Subcommittee, thank you for inviting me here to 

discuss how we use technology to improve the administration of the 

Supplemental Security Income program, or SSI. I am Social Security’s Deputy Commissioner and the Administration’s accountable 

official for improper payments. 

SSI is the safety net in the Social Security Act that guarantees 

a minimum income to individuals of limited means who are aged, 

blind, or disabled. In addition to a monthly benefit, SSI eligibility 

provides recipients in many States with access to Medicaid. We 

have administered SSI since the early seventies, when Congress 

created the program to replace a patchwork of State-run incomemaintenance programs. 

SSI turns 40 this year, and while we now use sophisticated technology to help us administer the program, the design of the program itself has remained largely unchanged. I would like to share 

with you today some of our best practices and the lessons we have 

learned over the last four decades. 

While SSI has never been simple, over the years Congress and 

the courts have added many new rules which in turn have made 

SSI harder to manage. Nearly every change in an SSI beneficiary’s 

life, from moving to a new apartment to a spouse picking up an 

extra shift at work, can affect the benefit. Due to the structure of 

the program, some improper payments are inevitable; however, we 

continuously look for ways to improve. 

Our primary key to success is to regularly review our beneficiaries’ records. These reviews, which we call redeterminations, 


dkrause on DSKHT7XVN1PROD with HEARING
8 

help to detect changes and to ensure that our information is current. We save $6 in benefits for every dollar we spend, and our redetermination process is highly effective. When we complete more 

redeterminations, our payment accuracy rate goes up. 

Another key to our success is our use of data analytics. We do 

not have the resources to review every case, so we use predictive 

models to help prioritize our program integrity workload. This modeling focuses our review on the cases with the greatest return on 

investment. In 2010, our predictive model for redeterminations 

helped us save $1.2 billion more than what a random selection 

would have saved. 

We have also learned how important technology is to helping us 

stay afloat amid staffing losses and growing workloads. While the 

SSI program requires the expertise of our trained employees, we 

successfully automated routine tasks, freeing our employees to 

focus on more difficult issues. 

Verifying the resources of SSI beneficiaries is an important, but 

error-prone element of eligibility. Through our partnership with 

Accuity Solutions, we have developed a creative approach, the Access to Financial Institutions, or AFI, Project. AFI allows us to 

electronically verify bank account balances as well as discover undisclosed accounts. It is a significant improvement over the paperbased process it replaced and has been successful in helping ensure 

that we only pay the right people the right amount. 

Technology can also make it easier for our beneficiaries to comply with program rules. One example is our SSI Telephone Wage 

Reporting System. This system allows individuals to update their 

wage amounts over the phone and correct their SSI payments before they are overpaid. This application has an additional simplification feature in that our records are directly updated with little or no employee intervention. We are now developing similar 

wage-reporting applications for the Internet and smartphone users. 

The last best practice that I want to highlight addresses the importance of sharing data across government. We have learned that 

data matches are critical to detect when beneficiaries have not reported changes to us timely. Electronic data matches have improved our program-integrity efforts. We have numerous computer 

matches with Federal, State, and local organizations, and we are 

constantly looking for cost-effective ways to obtain new data that 

will improve our payment accuracy. 

Our successes are largely dependent on sustained, adequate 

funding. I urge you to support the President’s fiscal year 2013 

budget request for SSA because we have proven that we deliver. 

Through the hard work of our employees and technological advancements, we have increased productivity by an average of about 

4 percent in each of the last 5 years. 

In closing, we continue to look for ways to simplify the SSI program. As we consider changes, we are also mindful of the need to 

balance benefit adequacy, benefit equity, and program integrity. 

We look forward to working with the Subcommittee on these important issues. 

I am happy to answer any questions. Thank you. 

Chairman DAVIS. Thank you very much, Ms. Colvin. 

[The prepared statement of Ms. Colvin follows:] 


dkrause on DSKHT7XVN1PROD with HEARING
9 


dkrause on DSKHT7XVN1PROD with HEARING78762A.001

UEARING IJHORt: 

THE C0I\1MITI'EE ON WA VS AND MEANS 

SUUCOMMllTEEON II UMAN R&, ... OURCt;.S 

UNITEI) STATES IIOUSE Of' R.EI'RE,.IiENTATIVt:S 

J Ul.y25,10 12 

l't:M~ S' r 

(W 

C,\ItQl.'I'N W, C OI,VIN 

IJHl!l'Y CO,\lMl S.~ IONER 

SOCIAJ.. SL:::ctJRIT'I' \1 )~ II STII.A l'I O~ 
10 


dkrause on DSKHT7XVN1PROD with HEARING78762A.002

J QptI'e<" le Ihl; IIp)lOfl ullhy III ~VJ"",r befOl'C Ihe SUOCIl"'11l1ll0e I~ tlJ 5Cu~ Ihe lo ~SOIIS Itaillod 

f,on, Ihe Social xc",;ly "tl'n;n;slmlion'. (55"1 ","n"g. ",e m 0( Ihe SUl'pl.",,,nlal Se<;mily 

h"o,n" (551) I''')~ran, . It h~~ b..11 4() years jnc e C"aCllllenl oflne SMlnl s.-..·"'il.l' tlme'klIt,....I. 

of 1(;72. whieh (1.;lltd Ih. SSII1«!~rnon. mlwbledly,,, ~ lI .. e ( ... "Cd" ",lnll><:, ,1Isignilkmn 

("hllcu.:e.' '" .d",iui' leting S51 uver lhe years, hul I btlie'·o Ihal Ih" rc-curd will , hu w Ih"l. with 

the help 0( 1l,ls SUi>r<)tm"III ... .... e d iligently manage Ihi ~ C<lIIIPIc.-: m~ml11 . 

In 1912. wh~n lhe S51 p"'gtMI " ·KS es m\lli hed.CnDgn:ss mnv~d t\,e ..-.pOI1SibHily fur 

il41111'nill ... in~ pro:mm fo' " tedy aged. blind .• 1Id dis.1bJed indi.idu"l, frum Ihe S,",., tn Ih. 

I'.-.Ie",1 Gu •• ,,""" " t m Il'"',,,de I Iand~rd 11001" of income 10 lhelle ,·" ll\e1lIble indi,·iduHI; b.>«I 

un nalion. lly uniform erlteri •. Cuo'gn!S; drMg!'~tcd S5A Imau~ <If 0111 t.\j~ (in g.' nr .strl,ell!rc 

" lid rop'llo(ioo r<lr aee"",lc.rflki. 'Il, .",1 c"",p"""o""'. adll1in;mmi"" <lf tl, ~ Sur .. 1 Sull!'ly 

p'''gt'''''' . 

While Ihere h>,c been ",oe!al","jo' I"N~"r 1.,',lotio" ch.nwng dig,bilily PI'9" s'ons . n the 

551 pro~r.lI1 . !tlCh as the ~"'h,I IIe.Ip(J/~ IM/ilj' "",III'"rl; OPPO,."",/II·IIt<."",:i/i,II/<m..tr1 of 

19'J(J ' n<llhe f(""'rC.rr~ Ioule"..todmu tiel of /f)jII}. lhe lias;" \lnIeW,.., ufth~ S511"'>j:'"111 as a 

~!h as'lisco".o. n1i."~n S· I. 51. d progf1lm uflD.t ,eson b. s "'''''';000 oMhall gcd. A~ de ribed in 

Ihe W.ysand I>le.ns .. pon on Ihe origin,tons k~'SI"l',unl: 

1h /, .... pr"8f11J/1IJ~ .1 hetH 01"-';8",,,1 ·/'h" ,·ir"·,,,"·,,,,1 pm,c;Jing: 

I. An ;'k.'''''~ .. "m·~firr 11M 1t~~J.ltlilllf. ",til (1i',,/lI~tI ,.-I", •• , ill{f",,~ 1101'/ '<:."",,,,.~\. Mf 

M/o"· II .'pt"CIjI<J ",,·d; 

1. 11II:" fll n·~, luul uPf""",,,il"·' "or 111",< "hI,· /(I Wf"l,t !I' II> ",. ,~IIIIl>iliIOI(tlllr"l ... 111 

~o/lhle Ih,",~ '" ('('If'<' frv'I' 'h ~i . il<p<"mlcm $11""rl!",.<; "'hl. 

J. All ~jJiri,""r u"d cc<wm'I<.",II1,,·/I"NI "f{l"' .iJill~ 1M .• U."i.'I""f"II. 

My ~"' ''' I<'''y foc\lSC..'i Oil the In~1 lh~ 5I' .1~"lI'nt> . S""cificnU),. 1 ",II JI:iCII'> whitt We h.oc 

ka",e<llhf("'gh 40 yc.", "r "{IOrieo(. in p",.illing ~ ... j. t"'...,. ullde, " CUI1lI~' . n"'"n I""'ed 

l'r1Jptrl1l , ~I\d b"w we h,we 1151'<1 It':!'''''i.Qg}· 3rlll Th~r ,"1>1.1"11),,". "IJtlroocb~~ to efficiemly ,,,I 

"ff.CII .. eI} J:l~e ,"It thHI ,,,,Iy eligible iml'.id".ls ,,,eei,,,, Ihe ,i, lll amOunt of 1><:,,01;1. ~I lhe 

",ill I,,,,. I w,lI h'~hlighl.$UI'''''Qf 0'" ' eCt'" ;""Q.~I'U!tl: uch~, predkl,ve ntod"lIn~. ~~I ~ 

han~<'S . ~nd data ,ni'llng. bill il h ~Iw Inlp(>nanl 10 ndco; ~n(\ lha( sIIeteSSfhl (\"tj"i"rA"on 

(II" lhc ocry "",,, pl eA 5S1 ,,,,,gr.,,,, "''luirc, ",ore Ih'" jU~1 l"rI''''' ''g~: i( fCllOi rr$ ~" "<krlu.~ 

ilumbernf II 1rnin ~d Soci.1 S«,,,;ly 5"'ff. I "'"SI "1:11, "Qte Ihn! I wlll ()Itly discUS5 hO>I we 

lI(·len~l ltc eli),\l to1 lhy ~,,,I bcltcfil nlltoc}II"tS hMcd "" "",~n ' le>ling. " i,,;t.1 willl",~in will,. 4u ick 

IWt,,,,tW "fll,,, 51:<)1'" Ill' Ike SS II>n' ~r""" 
11 


dkrause on DSKHT7XVN1PROD with HEARING78762A.003

Our Uendiclon ... 

In calend.u F.r:!Qll. S.I million .~.J. blln~.al'~ dl ~bk.J in(j;vj~ual i ,~ c. ".d SSI ""nero .. U.I 

a lI,onUlly biI>i •• ''",>1 !I,."" b.n.flci.".s. 5S!,~" .iiallifd'''' ,hat ~n.bl", " .. '" ,t> "' •• , ,h." 

Wosi. "~Ib ufroorl. cIUlh,ng.a"d sheller. In 2ijll.lh~ b.:"didu!t~ ,taf"ed '11Ilr< 'h.t" 549 

bililor' in r ... <kral SSI "",wf,l.< And M . ddlllt)o)ul 5: • .5 billi"n in SI~''''''P1Ilem."'"'y pay"'."' " 

Sli~b\lr "'vre .h.111 Z lI\illid" ..n,he indivld"." f.cel.ill~ SSI nrt ~gcd (,s (>I" oIdo<. Of Ihe ... 

I"\}II ~hly h~lf ~(C ag.d 75 or old.,. Nearly 70 1"""'''' of Ihu~ u'·.' 6S ale fe"llIk ~nd Iliany. ,f 

'101 "" 1. are widowed 01" neVer n>anied. SSI i~ a sale,y ''''' un"'" SOcial S.r"nty and. in '.(1. ~h<I'" 2.7 milliM SSll'I:i:ipi.nl.~ AI"", ,""cdv. Soc'.1 Sec",;ty he,,,,fi,,. Al II", <I1he, end of 'h ~ .~t 

',>ee,,,,,n. "e.,ly t.2 ""tli"" dklibled ."iI,lrt., unlkr age 18 ,.ceive SSt bc-".fils. 

Th. 2()12 Fed.,al SSI """",fit ,ale,~ $6'~" ",o ",h. wh,d, IS ~b<.>"' 74 pcrren' of I". roveny 

I.~.I . Eligible cou pl es-boll' ofwho<TI nre ~grd. blind.o' di,;abl~d ru~i c II~ f'e.lcml h.n"fl, ,,!. of SI J).tJI .... h,t h;s ~h<K'L HZ 1"''''''"' of'l>e Jl<l",ny 1.,.1. Th ... M" .b<w, '2gl.Dlll1 elo~,hl. 

"011['1 .. .....,,~ '"g SS!. 

11)' any " "'''''''' •. SSI .. c'pie"," ", •• n"m~ !he 1'0"''''' of uu, cili,",,;;. Fu, !h.",.SSI '" lruly 'he 

pll)~ ... ,n uf I .. " rewn an~ i, Iht safe'Y ne' th ol pro,ecl~ !h.", front <"Omp!<,< impove/ishmen" 

IV~ mu st be <~lr."I"'y C~ref"L th." .rr"n_ In in,pn,.e , "" pro): ... m and '"c, •• "" aum'nist .. I; •• 

ofTid.n"y dl> nol hArm 'hese ,,>OS! ,"I".",bI. ,.,tI1'be~ ofWt .sock!~ . How.'· .... il is 00, 

1'I>L,~a"on to 'he AU""ic-ao ta~p..y., to .nSIl, .. th~1 p;!yltl<'nL' 11l.~. uoyer (lie pro}!.,,", . , • 

• (,"S'>I.ol w"h the pro~l1Im'~ "'I~j'.n",nI~ . 

MrnlllH"-Ilillf,ldds HI ,h •• oOlpkKi!y ofnnr ,)I"(I&r;IIn. While Ih ~ SSt prO}!.rMI ,, ~,< ",".r '''''ple . 

i, LlJs "".001" ine'"'''''Gly eOlllplu "vor,he yoms. C""~'CSlI h~s ."ar,.d. n" ,nber of ch~ng.,. 

ill iUllOnilc M co",e,"s aoom how bes, 10 3lId"s$,1>e nLl n)" tve.", ~nd ~l lII~!I(>"" Iho11 Qffctillie 

SSI .II~jbl. p<"IpI,la,jon. 

Mocb uf '!!e prog"''''', ~'\ln\pl.~;'; • .s"."' rro"'lh. "'~y SSI IIo1yo>o,," ~I. ", Icul.ted. wl,kb ,s 

dcn"ed by '~("Ie . Two flll"tOl:'o ">ell '<I rl., .... lI1in"~" illdiv;duoZ', ""'''lhLy I""'''(,'~'' ill(um~ 

"TII llh ,"~ ~"",,ng(·n"'"I< . IIICOIl>e CO" be II, C.5h Of in ~illd. D,Id is u,u,lIy ,,) hl"ll ,h ~! a PC"'''' 

r.(.i~ ~! ,ha,e"" be I,~d It) ,~ 'in f,'""1 ill" ' helt.,. II ;,oc'"d .. cosh iown", """h", wagM. Soci"1 

SrclI"ly .,"t Olio", 1"'''';0".< •• ",1 " ,"""ploy" ,",,' t1.>nlpt'nSlitioo. hl·tlhd i"(OOI<" j~ f!>Oll and 

.bdl.1 Of :;von.,hlng ""'>C<llleun ~~ 1<> ob,ai" Ihos. itCIII . Ge«emlly.,hc amollnt of 1M <a<h 

inc<l"'''!If (be value of'lt. ;.,·kiud i"co"" i. d.ducl«<! from ,II. F.d,·ntl ben.Ii, mi •• whk h i~ 

cn,reliLly $(t.I8 ~ 1I1O"'h. i\fierdij .... 1~nJ;"g Ihellrs' SQS Qf t.ulI;ngs. we ".JIIC' 51 ror every 52 

, II~"'.,~~ ,II<: "0",,,,", '" dI<3I>It.l ..... I!1I<"" ..... '"""n in "." .. , Jr' ....... oI""'·' ",C .. , .... 1." ... ~. In ("'1. , .... 

+Ito>on, 1<,,1 .,,,," _ '" "". ,in1',..j ~ p<Mm"S' pt .... In +'y !III ( ",01.....-.1"", ; ",",""",,,'r< I'~'" ~ r", ,h .. 

It,.·.II'''' 
12 


dkrause on DSKHT7XVN1PROD with HEARING78762A.004

0( e:lmi ngJ;. rWOIhcr in rOIll~ rO' eu ",plo .5."'i~1 Sccu,ily _ .... ·c "',h''''' I~' brrleHI 'luIU .... I'''. dolla, "flcrdi .. ega,ding Ihe f1r.;( $20.' 

IlIdi. l,h,~ ' S511",~.f11 "JI)'''' I.! III", m.y <h.ng. if Ihey m, ... ,nto. dOiTcrem "li""1-

""""gem"nl" _ whelhe, a p<tStln ';'-0 . 1<)1\" 01" w;lh "'hers. or resides in I ",edical radllty '" 

<">11"" in,llluli()ll. For ill"Ii,lreo. ,.~ ~rI illdh idunl "Kl' os <nlil • nUrSint: I,,~!I('. Ihe I' ,,~,,,,' . 

,no"lhly l"'y""'''1 "'.y be ",d"r""I I" os linie lIS SJO p<r ,"omll. If Iht p<:I"$<'" "lI.Jves f'mlll hi~..,.,. 

her Ow n 1I000.~hold fnm Ih~ ",",.ellold of anOli>er IlOrwO. alld Ih~1 "".-.on provides roo;) 0' 

she lie,. !I.e I'.ymcm alw nllO)" IJc .. d""ed. 

Th~ . al"e ,,(a" inrlividual" ~ ... ~urce~ .1,., ~rr"CIS oIiJtibililY fill" ,,,,, pfOW~'''' An imlivi.hr:lI i. "')I digiblc for !I.<ldils ifltls <It I .. , C<f<I'lI.ble '~''''''t3 c'cee\! $2.ouQ. 'I,d coupl.s ftl"e nlll 

dislble If rruo"l~bl. n»ourCt', <.,cud 53.000. TII.se ruourv.li",ilt h~v. nOI been ~h~ngell 

,in« 19119. In !!Cnernl ... e counl "' rc""""'C'I Ile ,ns ;ndivld" al. ~"" con,'<" kI o~.h a"d us~ (or 

iheif S"I'PO" -:l1I·d m~inl n~llc~. such a, b.1nk arrolln!s. SI(lCkS. ftnd bondS. Cl)lIgrcs~ ..... ~ anl(R<1cd 

lire ACI gcvtral l;""'. 10 add ...... ,eso,,,("Cl: cxdusion •. funher inc",",;"! Ibe.~""plc~;ly oflbe 

l"Vgrarn. Our App k~li"" for Supplcm<Q1~1 s.,curily 11I('<1I"";s a 22·page form Ihol ~st" 

"llpli<aI\IS q, .. srloo'" _bOil! these-.lld <">I1I~ri~"u'$. I ~'" il\dudin~ a cupy U jIiIn ()( m) Sialemeni. 

T h. d.~lgn o/ Ihe 551 program "'(I"i .. ~ Ihal We .djuS! «ndi1 p;!yrnenl" 1Oa«{)\Inl for 11Je~ 

aCh,~. We .. plA,n h) 5S1 "'c;plcn!S Ih~ . Ih<r mus. r.pon l""SC .h:!ngc! I" "" "hen lbr:y 'OCCIII. 

"bSC"llh.ir li",.ely rqlOf1ill!, il i< d,(f1e"III" obr3in infonn.uon aboullhe:oo ch<lng<!' in' JIft'I"I~ 

fa; hion ... ,,,Iling In ~Hn •• rro""o"~ paym<"ts. A~diliol\_II)" .• ven If l"divldu~ls r.~ ill a 

11" .. 1)' m,'noer ..... rc req"".d 1<> f1rsl "",.'Ik ..... ""." OOI;l1o.1liol"l "f 1>0 ..... 110. change arr ... ·'$ lheir b<ntl1l"II()"n\$~nd provld. du. pro<es>; pro!eclio,,~ . This prucc~ \klay~ ,wj~$1lo~ 

p;>y,nem. 10 Ihe cOm'c! alnO"nl. Punhern)()fe. ....... generally m.ke 55r po},ncnl~ 'Ill II", fll"$1 day 

of tl ... nlllulh fl>f oI1~ibi j ily ," .1,"1 nO(),"i1 . E\'tn if III. PO)"II"'"I '$ c.JI"rtCI When pIIid. uoy chanJ:<'" 

Ihnt rn.y oo;cur dUf,nl: ~l'. lnotllh CIOn ~ffct'llh. j)aymcnl IIw., ..... I'ich am .. sull in ftn overpllj"'cm 

or undc'l,~y"",m. Thu •. Ihe P"""'" tt:'luiru, .... ms tlle'lIsclvfS (l!''''li,"~s c~u~ elrun~ous 

p.ynk'nlS. 

Our UV"I),lYIlIeIlI a~c~J1Icy nile tt:fl .. ·t,; Ib~ c',"'pleA ""lUI" ~' f!he SS! prt>)tmlll. ~Iill. W~ have 

iml)roved. In FY lOOll, <lIlI 5S1 "ycrpay'ncnllCi:urary "lie "'''' H'J.7 pefcenl . We "ooli""" 10 

".,ke pI.I..iti ve ~lrid<:<; &1 Ih. ",Id of FY2011 OOt "''''V'''Y''I<:ln a<"CurtK"y"u 92.7 !>erce,,,. w. We" able ~Q achi •• ·• Ihis impnwem.nl in piln by in ... "~in~ Ih. ",(ml.rcr i)f rWe!(nnin3li()o" uf 

eiigi h'li'y ... e condu,l. Redclellnin",i,~"",,," p'''''.''''''' u ... lo "'.."""""," .. dpien"· ,,,,,,)t'le ~"d re ....... n:. ~ IQ en~ure (10_1 Ihey Ir. sli1l . 1 iglble for l1Iomhly jnlY""'"'s. Redelefln'n8lion. ~re 

olle of 01" ollOSl powOff"II''''I!J1l"' inl<gnl) 1""ls. W. 'Slin.". Ihal every dolla, '~nl ()fI 551 

... d<:I.""i'I,1Iio,,~ yield, ~bo<" 56 In life!;'". pro~ram sa";n~5. ncludin~ M.dicMd pn'~~m 

cffWj. We av~ >ludily '''~f. ~!td Ihc number of rc<Jc!crrninalillflS IH torl<hoci dch y~~, <'n.·o 

.... y ~. Ttrr, f,.Ii""iog eh"" ",fI.els lire i"'I"'''"''1 c""''''<11nn bo'''·e(."1III,e "1""lI<rof 

..,lkl~"nin."t"' . ,,"m,plrle-drtermlnctl by Ill" funding ''''' ,ull lh ~ IICrll~cyor Ih. SSI 

p<\jgmm. 

, I II< "'~I .. """ ..... ut Ih-' 1lI .... pt<J; '" Iitt p<"~'" I~" "".w.~'""'!to .. ""I '''''''!'o"<l $I ...... "'" 'rrip •• I1 "~ SSI 1,~,,",",,\~ )I.,,",,,,"J i" 1",2 
13 


dkrause on DSKHT7XVN1PROD with HEARING78762A.005

SSI alP Accuracy ilnd RZs/LIs Five-YearTrend 

" ., 

" " 

" ,. 

J i " " • • 

• " • " ... ,,- ,,- " ... - .. "",. ""''' 

Similar 10 "'''''!ermin~tiOl\S. W( also COI,doCI peri<)dic medicll c()Illinuing dls:lbilily ."i~ws 

(CDlh) Loevalu~le w~ther dl5ablcd SSI btnefki~ri.s coo tlnu" to meeltm: medical criteria fill' 

di5llbility U "'qui",d by the Soci3J Security Act . We e.tjln"I. , h:.t.Ort av.rage. each dollar 'pen' 

01' SSI and l>illilbility IrlSullI".eI Dl) "",dk,,1 CDII.s will yield ~b<)ut $9in lifetime 1'I"O&n>m 

SQvings. indtldlng 5avlnp ~.c",;n& to MediCllre and Medicsid. 

Prediclive nlOd<ling te<:hnique. ha"e proven 10 be ilnl, .. no;tly he lpflll to ~nsu .. th~1 we u~our 

,eiOOurceS effectivdy and efficienlly. 

W" do (\Ot have tlte "'1001\.... to cond""t r.detcnninatloos 00 all M.L million SSI ",dpjent. <v.ry 

year. U.in~ oor SSI e<kt.n'~n:ttion S<:rui"g MoUel. we l:tr~ lh e caseS n,osllikely 10 be 

o"erp.lid. In FY 1011 predicl; •• modeling allowed ~~ to prev.IlISI .2 billion mI~ in 

Merpoymenl\ Ihan whOi we would ha,·. otherwise identified thmugh u ralodu\n selection of 

case •. 

The ,nodd M~ two pons: the fif":'lporl predicts tile probabillly thai a CIt'" II .. an ov.rpay",ent 

error aoo !he S«OOd PO" predicts !he pote",i.i oIoIlar aOlooot 0( lhe ovc","yment. At Ih" Siftn 0( 

every fi$CI.1 yeor. ,,'. rull all SSI ..-dplents Ihn)llgh th" mooeilo priOlit;l.e error pJ'OJ\e Cases afld 

schedlli. a redetermination. We olso select for r •• iew tile reroms 11l3l contain at leaSl "'" i~!ue 

Ihat We need to fmth<:r """Clop.iUch ~.lU>disclosed wages i<kn1i1kd th"",~h oorcompute , 

matching opcrJ!;("," . W. calltl\o$e ... ~i,wi "limited i.,."e.:· 

To help us (ktermioe I\(Iw 10 prioritlle!)lor CORi. w. empl"y. series of MII listical soorinj\ 

mooels 10 p", diClth li~dihood or u",dkai impI'Uv.""Jll for adult ben.fi6aries wh" ...... i'·c 

bcMfiu du" H) disability. Thest' ,1"li";c~1 s«)<ini modeli Are oo~l 00 our hi!.ori<.'lL1 "i~bilily 

11013 nod predici !h" li~dihood of medical impm'. ment"' a gi •• " point iu liOle . The di58bility 
14 


dkrause on DSKHT7XVN1PROD with HEARING78762A.006

,I'OIa we .... t" build Ih ", ,.""i,,~ ,,,, ... .:1< ",cI"d~. wide .""Y H( IOIcdi~.l.de"'"g""I~lic .~ od 

disab,lny ca""·~18Icd lnfo"n~II"". TiI<'se srot'in~ uJQdd, 4110w us InronducI C OIls io" OOl ~ 

effeclive~"" err,c;~'" manU" Ihal I. RI""lu. bu,dclIs."JIt for di!ilbilily bc"dic;a,i.~ , 

A~loJIMIII)II a>sis.s oJ", employees by dUIII~ ~". oflhe "I(!R: mulill" wor~ _nJ f't""~ 1II0in up 

'" fIX us On II1O(e comple .• work Ihal .""HOI be: aulom"ed, When we (j,., b<~"" ad",;"iSl .. in ~ 

I"e SS1 prog •• "" we jl<nd lnus. CIISe inf<)l1l1llliun 011 l)apt" in Q cl~inlS IbId." lId .h. tiold 

oflk. keyed tl~ basic <"Iai'" dala IUI(J all el.eln",i.Id.",)mnIUnicali"", le'lIIlnal and .... "_,,,,in. d 

i,lO .hee.nltal "rr,oe c'O"'PUIU in Ilaili""",,, 

In 1992 We i",pl~'~II •• d QUr "ll>Ikmi~ Supple",en,al Secu,ity l/lrollK' Clni",s Sy~I.!Ils 

(MSSICS), which ,-"ides ou, emplo)'c.i< Ih'OIIgh co/lccling lbe ;"("""01i"" w'O /lc",d 10 d""''''''e 

eligibili'y alld "III<IIhly INlY"II:II' ~", ... ont, MSSICS ~t<O!<lor". Ihe claims file ,nf!)"""1iun, whirl' 

hQ~ nllow(J U! 10 " "'H I!I fully d""'mllk recoRj~. 

l'JeCOJllmOt I() HJQd,,,,izelhe UIJ~b'hll.~ of lhi! c~,;e pJ'O('~""n~ SYStem. We b~ve mig,alw III ~ 

Web bn~d ~""hhc('1U~ IMI ~II(>"',,,~ I" I'RniJe OJI",SI "nli" ,,-~ ,vlc< , and .dJili,. ,all'"K' 

,"vi nS ( • • 'ures r",{).or tr"pl(>y«~ , 11'5" g<1ld"~ 1 j.»1I\:<SS be.-ause a CO"'IJlele CO/lW'S'OII i, ~ 

la':< dl"'" Ih.1 ",qui"" siMni llrall1 IT "'SOUf,""S 10 ...... (J Il)~li , 

Under II,. Suri,,1 Securily o\CI, We"'" rcq",,,,d 10 •• rif,' rlOm '''''<rcn,km ''"''te., ,,,f,,,m,,',o,, 

'''pplird by aj,pli<'Hnl< a"" I" obtai" fm'" ""wde ~"IJ'ces .dJ'"onal informalion tn..l ml~I" bell, 

on an in(h wid"al's eli~Ib/ljIY "IIdorl". proglllm," We are ro". ~"Uy lryh'~ 10 •• pu"d Ih. pO<tI "r 

.uch d.la .v.il.bk 10 u~ '" III'~C Ihe dol ... ,iI.hl. ,»'" """ . 1i",ely "'e"I/JOO"kallJa~" 

R<sou,ces In nlln, .. i~1 ;><et,""I$ .,< I.~di ,, ~ cause ofo'JUnW"s p~)m n .. , and ,h. e.iMem:" ."d 

v.lue "f~ accou" tS is "no of lite "1<)51 diffic ult (octnt'!. 1<1 'tOry. 111 19<))1. We Ju bmilled ~ 

legislAlive p"'posal. "'hkll conlained. p"lvi~II)l' "'qui,i"g SSI appliCllIII! a"" he"diclarie~ 1<1 

pro"iok lhei, ""lh",', .. ,;"" 10 "hi.in ~II tin ""d"i ",.",,<1. (",m.1I fin""d"lln" 1ul j" ,, ~ ' 

l'ondiliotl ofSSI .1igibjlily. With Ihe slIV1)(Jn oflh'J Subi:Ql11nlilt<e.lhe pro"hi<Jlo \Ii., enacled in 

.he ·(I.tIrr ('{/f.' I"rkfHnJ~"c~ IId.if 1m. Afler We hllilh •• "Ihorily I!lOO!nin fin."o;. 1 

'"rOrR""i"", wo needed a " """hanis,n'O do 1'<>. Thc:~fo",. We de .... lo!"'d ~IId ;mplel1lfo<w . n 

1" "OVllli"'e ppro.:lC h '''~(c'SS fin""dnl ;"(",,l1M,':"" "hieh weol( Acce,s \0 F,n,ndal 

In.<lil",i"". ("FI), 

We ClmtTll.:1 wil1, n vendor. A"' uity Soluli"", IhAce"ily) Id help ,I> imple",,,,,, .. 111 " .. i,".1" 

AFI A""'''ly h tin, i"'wnedi.!")· wilh Ihe fin,"e,nl ,"$1''''';00 comm"nilY, They ",nuil 

nllltlICial ;"5IilllliOol£ 10 "1id~II'.'" AI'I. Illli" lbe",. hAndle gll c"mmlln;"~l;"" . and 

Il\Jub!c,!,U(I' when u ... ~".<e . TI",y .Iso 'di "blJ ~ Hoe b,1IIk, for Ih ~ C\lSIS a~ aloo w;lh 

,;UPIJlying accoum dour, 
15 


dkrause on DSKHT7XVN1PROD with HEARING78762A.007

W. re<",,,,ly inlCS'lltd 11>< A FI f"'XC$$ ;IIlO vur S51 cru;e ilroct~",g S~>le",. which h., all!;)" <6 

U; II) UI\l,"~li(ally obIaln Iina"dallK'rvulli iofofl".,io". Tlti, ~kc!f""ic p"",co.\ ~IMJ e".bl.s ~s 

10 ~1H:(k for ,,,,di.d<>Se<l .""""nlll at taoilo",'y_se'ecled lio""d.1 i""lilutio"~ I""",.d ".~r ,n" 

f<cipi.",· S 3ddteS~, 

W. a .. ~Iw.ys I",,~i"g forsn",ne, w"ys I" Io."d le ("'r ....... k. Uuildil'g uIK>I. OUt A~l >uc"""'. w~ 

~,. e.tpl(>t1ng lloe 'll< \If <'()Il.me,dQI dalabases 10 h<lp uS lde""lfy IU,dis.cI{l.w:d "lln-home f1:~1 

prnpcny held by 551 appliCilul. HOld recipients. Thi. amonmlrd apI"o:ICb hs~ II,. l!()1utbl of 

h"llin~ US "nCt"'er unrellOned ~S""I~and iml"(We II .. accuracy _.<1 im. l':,ity M,b~ SSI prog1llFlI. 

W.~ •• "" Ih. second leadin, cau..., ,,ri,,,prope' P"y",wls in !l,. S5111fUY'"m Th. 5S1 bI:" elil 

~ highly -Sen"',; ". til OUcllllltlOilS in il\("(ll11<. 551 redpient> 'nII5I "'J){)I1 chan.@<JinH,e'rwI!': • 

• ,,>fIu,,!> 10 u~. Ilow.,.r . ... cipien!~ ,Ito 1101 alway" ",p"n ""g<"' «, "s OI' ~ 1;",oIy I.ISi. •. """y.,,'. ""<~ "",,,,,,,,i,," tllOls "elp$l)ll' be"eficiarie. r~ pon ch~ng~< thai 'ruly ~1(tCllhdr l1<odits. 

We Otelllo<l Ihe SSt Ttlep"on" Was~ I{~poning S~SI.m (SSrrWR) III prMid. rui",onl' with all 

"""y way 10 "'I",n th.i, .... go.!11 ~ Ih., "'m,ld .1"' ..... ",rou,oes loy up<i'llnl': our ,",,<o«ls 

d,rectly ... "h""1 ~l~ n"~ eml)lo,. •• ""odling. llH: SSITWR sy5h ... " ollow,\ redpi.nt~ to re".) " 

Ihoi. I)lOOlhly "'agel; using. IIlII·free. !{I",h tim. tekpllone i)"em. When ",.ipients '.porI wage. I .... ugh SSITWR. Ihe 'Y" .'" u"~''''licalir "p<l~les rj,. SSl r.<II<.I. eort\OCl£ lhe. upcoming 

p;jYl11ent. if McnA,y.And ,,,u,,s. r«tipt.lI> 'he •• U ... 

0\1, .. <IS I"'ve h"" n ' hOI ,he wa~r Tifon ~'I,,>n We ~Ceivf Ih ou~h SSITWR '$ highly A(('mo l •. 

Ne>'."I,.I,,!s .... e "rolSM"hc~~ SStTWR ,eJll'>ns _!:'lin,' the ".ge inf","m,;on fro", tl,e orr,C( ,,( 

Chilo SUl'pun e..fol"Cf''''''''t', Nal'''~"' D,,,,erOl)' of ~ .... Ilire!l (1'IDNI IJ allll "'" ~tB".' 

EIlmi g~ File . 

" '. are """"'1111,. d".rlopin~ an 551 Mob,le Wngo RepOning applicalion. on ~Xt~n,!o " of lilt 

SSll'lVR ~Y>l."'. ,,'hkh wHi pt1l~Ide' SSI t«"ipl<l<l~ Ib,· .hlllly 10 ~ubmitll1t"i, "'g"l ••• rl .. '~ 

,,~,hll. ~1111 " ph"" ..... Li~e lIS Id"ph",,,, "O""'.' I",I1.lho ,""·bile ~ppllc~'ion will ."IOIn'lIlcllly 

Up<l~I~ lile S51 record. COffeel lite upco"'i ng n'~IH.n . if lIe~e SSltry. ~"d is;u. _ ,.<'eipll!> 'h~ 

i"tli.i,I".I, 

WI,." r.dl"~" " '''\t~ 1><11 ,10 001 r.gt'l~rly rtJll"'lhoir .~05 . .. t "'lIst ubl.", lito .. age 

inf""'"'li"" di,e.,ly f...,,,, Ih.ir emplnyont. IV •• re e'~I!!~Ully ~nr<:hl"8 f ..... ""'thod. of (juickl)"' 

. "d .rficienlJy !.,llerIOj! d,il informatiO". lVe reeonlly eo<'liaCIN ,,'ilh The Wl>fk Num/x:,. ~ 

large p.y,utl pruc<:s~or. I~ pro, ide' I" wilh i,,,",edint" ",><I OI,li11e ~re.ss 1<-, Ihei' largt d.,~llItse tlf 

wag.., cu,·.,ing l"'or !.400 .mrlo}~"", AllllO"fh We It~. e been ,,~ill~Th~ IV t~ Nu"'h ... ·~ 

~rv!(<!.~ f,)! ,;(1O", lit .... (l.O<, 0 .... cOOlml'Utl"wS III I" Obwin ''''''" inr""""ion im",ali.loly . 

•• vlng "'" .nl!~oy""S' Ii""" 
16 


dkrause on DSKHT7XVN1PROD with HEARING78762A.008

1.1:-""0 ''' fll ,~ : I~drullic Uula "hltb,'S h " ..... l\" ~ ([II' I' M"" " IIIlogrilI Eff rl ~ 

Onla ndl'~#f~ a.~ ~ CI>s.-errecli,-c "'Y 10 p,ewn, ~,...r lk •• ~, inll""I"" I"'yll",nl~ . for 

"~IIII'lf. " I'Y 20011, fo. eve'Y dollar .... len. "" OUr q"~ne'ly w.g~ !l)~t~h wilh Ihe Olfoc~ 

Qf"CliHd SUPPOr! Enf","",,"Ie.ll \L'. $a~r< 1 ablKI' 57 io SS! """.fib. 

w. t~l.n •• rify .he 1"cOI' ''' and resoorces II";! in the SSt mcaM Ie" Ih ...... ,~h daln mo.ch"". 

E.ffidtlll. ~cou,tIlo. Rlld Ilniely •• ohaogc~ ,,,. d.,,, p""lK~' good s.e ... anlship for oll,l..,.,ie;, 

i"mlved. lVe h",,~o •• , .sooc~(h~ng.~ ","h ~ " 'ide-,,.IIge of I'~ral. S!:M. and Incal 

emi,ies .h., If'\)'id~ us wi.h info,"".lin" Ihal we need 10 stop bo:ndi" "°011,10."1)' 0' 1<1 dlallgc 

.lIe a" 'OUII' (If bo:udits ... e , .. y. 1'01 uample , OIJ' ."haoogc ... iU, IIIe Qfficc .,eChiltl Suppon 

Enfon:cll1cnt pr!)v.Ue;s" ~ w,.h .... ag. inf!lm~I1iOll. 0111 C~n~. wilh Ih. IOlemal R.,'enue 

S.,.,ice pmvideo,,~ wilh dala on income "nd .,"" .11' lIen.hil'. "ud "u,nch"nre wilh Ihe 

0,.11"0111<11 ' of ~m"I~"d S~cu.i.y provide!; us wi.h d'la 1>1\ 'edpie!lli .. ho have .ot"O!~ il)' 

cfllll"fO~"lryOl ha ,'c be~" dOf>\II1 •• 1. IW !ll;;o ha,~ abou. 2.300u"h",,~ .. wi,,, ("i"Olls thaI 

""ow Uj 10 sU~JlCnd ben.til< 10 (,rioonel1 'luiekJ.y ."U . fticlenlly. 

W. ~,~ boLl"d by tho Cum pUle, M~1<hi"g lin.! rr""lI~) o~cCl;()" At', .... hich "" lui,,, us to 

intk""ndenlly H,if) ~"d give d ... rroce~s bo:fQre Wt I<lJO,1 l/IIym.m based on .he infon'l .... t.OOl 

We OOId,n '''mug!' [n erf""e.~. ] 10,"'."', ,10", • • "If ",,r ,,,,,Idles- 0,."".101<'" of V •• e,"". Affairs. 

Office "f P""",,,,,.I ~b" .. ~e llen •. " lid lta il ""d R •• i",'''elll Uu."d- qualify fo, on e~~pliQ" from 

1M '.'Iui"'''' .. nl~ vi 0.. C)I,If'I'A ~nd ~U Qolll1i.ally "pd.to SSI r<-rord, and ~dju,<l pII~monl 

'lOunt . The <C .;! of OOf i"'onares cn:ale olen. QII' empluye.,,; ""'" i"".sti~"", ",,<I '($0)1 "e . 

\I'e ~pp'l'fia •• I •• e .ffons m:tde b)' llot Ch~i.m:1Il ~!ld IIli::nilli!rI!If IIIL.' Suoc()II11"jn.e 1<) e$l~ bl jsh 

""irnno d ••• urha" gc &nd~,d, r", ceo .. " 1'.,j.",1 ~rog"'"", IV~ look fOfWanllU "''''klhg 

wi lb Coogres.o; to d<'1c"nh,e IlOw best to .Sl~bli~!1 u1>ifoo'l dAln ~dl~nJc solnd.,ru ,,·hile 

f'n'm01ing ef(jrienc~ Md ",.i"laining .. ru.i.y 01' IIU' ben.f,ciari"S· privo.e infon1la(iO" . 

SinlUrr.lng SSI 

Te~,i()JI e~iS!S belween n,V«IS of l!>! SSI prog,am ."d OO li llni"rali,-e eflidern:y , ~ I 

OIcnlil>ned, .r.. cooI!~e~iI1.,e .he SSI pruV"""$ ""H.,j il>!l1< ""lwre"",nl'O del.n"",. 

rligibjl i!y 1I$;" lI- ~" ul~,,,,ive ""I of rules eovrring Tneon ... ",,",II'Co,' , Ihin~ .m,"~.''''''n s .• "d. 

fo< be" fid~,'.~ uM~~a~. 6.'i. A di~ bilil)' "''111i,e''''n!. The prog ... "," d<.i,'1<d to be 

",")",".i,·. '" .h~ ben.fld"ie." ch~n,in~ dn:ums(""ces . nd reqlli!t'> Ih!' lhty "'POri Any dlan~e,~ 

Ih:I. !I1 y .ffoct Ihr " .h~'bll!IY 0' h~ A!I1''IInlilf Ihelr mon.hly bo:nelll, 

Ted"'ol .... ~y '\leI I lOll!! way In help,ng u, ndlnlnlll<r 'h. " .. upl.~ SSI pr~gtlll". Howe'e., 

~d"\j ngy and Illllncd .w.O' Milne ";1"""1 dinoin~.e Ihe CIllllple, i.y. Ov •• Ihe ."11, we hal'\) 

,u...r.nah" A II"",I .. ,,,f;"I,,,,;,,._, ,,, _<in'rll(Y SSt ~.h Ildlllinl,I!1I.,vely and .h...,u,h le~iil li c 

[lfQpllS:lls. "lid Olng"'5'i ha.. .<'ed (}fl ""'"y of"", proposals. While Ih. OO""IW ~i "' [lliti<3 io" 

r"'I""'-,I! h.,·c bo..,n n:ia.ivcly I"inor in scope , IMy ~~, ~ h,"I<I ntl in<rt",.n.~1 [XI:Oili V~ err ... ·,. 

HIm'e.-n. ~i~";fica n! rUfldll"l<'mal prog.nm mpllti ... "1f(1n ~frorl.' ~re difrieili. II) achic'e. 

1~,~r 1,,( 9 
17 


dkrause on DSKHT7XVN1PROD with HEARING78762A.009

We. will conlinu~ In iIt~n:h for l'ia)~ Il> 'impliry SSllo nmk. il u,,~ .. r<ll Out beodioi.ri~ II) 

""do ... I~"d and c.,ier r", us 10 "d",inister. M<ln: inrm<dial.ly.C(lIl~re$! could help di blcd 

i "diyjrt"~I~ Ulldel"Sl$nd and "~ .. ,g.lt 11", complex diJO bllily ..-(lrk i"ce"tiv~ p"rli,ions of 5S1 "Old 

lire Sor:ial Sei:Urlty DlsabililY Insumn"" PfOl:"I1'" by leaurllOl"i,;", II", Work Ineenli,. PI.,," in~ 

~"d Ani'I''''< iWIPA) and Ihe Pmtcclion ~"d Advocacy for [ltndld.ri.~ ,>f Sod.1 5""urity 

iPAUSS) ptllglll'ns. Th= ptllgr-.m. h ••• been n:.",,,,";,,,,<1 !<eve ",I Ii,.".. "i"ee they "'c" 

.... Ied by the 1999 Tic~'1 10 Work" 1",i,I'lio". bUI Ih. nroS( n:(Cnt re,uliloriution ... ~, ollowttj 

10 .~ ~t Ihe end offi!cll V ••• 2QII. In Janu.!}", w. ,;cut . drafl billm Coog .... I<lOOnlin"< 

II", pro~r:o",s.· We look forward 10 wodi"l:- ... ilh Ihe s"bc<I"HI,iuee I", cl)"lin". tU address IhiS 

~lIc,,~ •. 

Ad{'qu!!lr Fu"di"@isCOli>!!1 

In FY s 2011 ami 2012 . the diff .. ""cr bo:\ ... ~." Ihe f'rt'sodenl"s Br.>dltet and ()U ' approp<,olio" a~ 

;rulor 11\30 in any mne. yea. of Ihe prt,lous IW O d..,~oJes . hi FY 21U I.C(lngrc .. ,=i,,<I .. 1 

S275 million from O!lf i~f",m.,'ion te<"h"olo~)· (IT) carry'''« funding. wlr ich w!11 h'I1)[lCr ll\I' 

. ff",tts 10 improve our pnxlOCli.ily through IT ,nnovalion. In FY :!Q12, Con, .. s.~did 001 r"lI y 

fond progntm 'nlegrily.' Ih< I~~cl s .lIlho..".ill:J by II .. n"d~et Cu"lrol ACI.li"'i u,,~ 00' abilily t" 

.. rry 0"1 .. "o,,,,d pro,",'" ,nleg"IY "·,,,k . 

For .... 'I' 201J. -.. •• '" ",,,u"'lin~ SII.7Nl bith",,, for ,,"r "d"';"i';I"''''~''[IC~,a n!lldos\ 

incre~St' r .. ;"n FY 2012, wlo,,,h 'nd"J .. the progrdm inteJril) '11' adJust .... nll .ulhoriud by \~. 

Bttdgel Conlrol A01. ""d which would pul SociAl Sf:("Urily (tn" Icn ye~r p"''' 10 elimioal< rhe 

b",,~log in prog"'"' inlegrity f{'vie" •. 

Our FY WIJ b..ugcI rCil~e" i~ lean. W. h~ve.ahad) c",bed lowe. P'lOn1y 8CI;,l1i~1i S() Ih~1 ... ~ 

can P""'''< Iwo lOr "'It m,,.1 imIK><1.nl go;olF - clinlinal,ngLhe b~~OnllS l>ao~lo, and f~u~ln8 011 

program InlegrilY wurk. It will be. chal~"g. 101chl.ve Ih. g<l,ls a5SOCiMed with !ke .. 

prionlia. W. e.'pee' 10 I .... 2.500.].000 e"'pl,,)"e"~ in FY 2012 OII I(1P ()flh. nl()fe IMn4.lXlO 

"'pj nyee~ we ~I",ady Imt i" I'" 20) J d". hI prior b"d~~1 rUIS. Allb~ ~nd of!h;s )~~r.lhe 

Q~"'.y will hIt,~ ~llOI lIlhr same.n umbo,of e",,,,n)= , h.1 we had I" 200? even 11"'"8h our 

.. <It~ hOi increa .. d d."m3ticBlly 

I ur~~ Coogrcss ,'" p;iss Ihl, level otfundin g brcausr we h ... e proWl! 11,.1 we dt!ivrr. Through 

II" h~td work of ou t,"plll)'et~ and trehnololgic.1 .clv. 1CIII>. " c h,v~ inc.M:IOd en'pl ",yco 

1..-u.l""i"iIY hy an ~v.",~e "f "100,,1 ('K" I"'n:C"l in .ach of the 13" flv. years. j:'ew. if ."y. 

0'1!:""i~II<>I1S have ~ct"o"'I~j'h<:~ .1rnil~r 'n.prov.'I",n(.O. 

' " lqisI>tj.~"""""";n ,""j~·.I""t' ~I) II".I¥" ·'"""~,II6I1nf""'II\,' """"'" «l<~,~ ..... , """ ~ .. ...t r., <n.-.lil •. ~ hkh...., ..... ", ......... ",{, ....... wl) llo('Ol!llinJ ,., u.r ...... t ,If ,lor "1"<Ii". ·f ... ",,~ ... I .",,~I 

"''''pO,f) S~I ~k) '"'" .""'i ..... 'Ioo..Jrn,noSl .. I". """'-, or cIo., ......... ~ ""rI>< .. ",,~ .""Ii ....... ","""" f«k""" r)""'''''''''''''''''"''' StaI<:or I...,..I"Q ........ "'"O(')·III" Il>:otIOII"",)l>of"""" •. 

bllD ·!I ~" ~ )!Vo/>Q.1\DI' ,," '1 .. ',1 ... ...., .... 1. tJl""'h"I"~ 211\1. ... !,:' YI!,~s; ''' '' ·'ilIl~,,..IIl!l''''1'·''bf:.!.;I.oJl!J 

""'" 1'.St· 81019 
18 


dkrause on DSKHT7XVN1PROD with HEARING78762A.010

C9nch'~i9n 

Wem .. • .Iwiy" .. l~"' l\ on n11)r(WU1~ O;n n\ln'lini~U:lliO<l or II!o SS] pro~rn. . r<l<'~s tng n'l Mw 

rteb"ology "'''' Il\"k~ u, ."".e cff1ciclIf. I" rile fUUlre. II •• ne looking 19 "rr". m"bile .IId ""Iiot 

"ppiiCl,lirjO> f\ll" .... I>OI"1111g wage~. otl1illt cho nge ...r ~ddre;$ Md dlrec\ d~ lllSi l> Ullllnded (1'1< of 

Le~i~.N .. i, It! ~eriry rcall"')]lCrly . "lid ,,,,,,,.,,,,,.ath.r Ilmj.,t. dc"i~"e,llo iOlrm"~ ouf loI'",ice 

"lind ensure the iOlegrily of ('ur IIIIY"'."UI. Of ("""1'01:. these in'pnw.,,,,,",S dCllIllld 01' Su,\lIill,d 

Qod A,leqWIIe f'lndios. to $Uppl"lrt Ih~", . 

Ul!inlalely. the 3dll.ini.lI1uion "r II", SSI pro, .... ",. doe IV II, "unlpleX)I)". le",,,ln .• lobor· inl,n", .. ". 

While mo<lem Ie<htlolngy hu en~blod II! In illl'OfJl")fale OtW pruceJStl a ll<! new d", ,;ouree!. our 

. "'1'10)'0. are <=0';311<) ."""".~ Ih. intepil)" of ,I,. 551 fIlU,tam. Our e",ploy ••• do" lreal 

j oll na~ig~ling ~ C»", pl '~i!y of 1111. prugmm lind quickly delivering a~ell rnl. reneflli '" ople 

who <Ic'p"mlcly "".d II .. ",. ~II ",illo ~"'.I ",II"p;l'll!;"" on" .\~i ll. 
19 


dkrause on DSKHT7XVN1PROD with HEARING78762A.011

!toI. __ ~ ... """',...".,_ "'"'' n' ..... '""" ' .............. ..,p .... 5S' ..... r .. "'" ' ho> ...... , .. V<I<I 

I am/We are applying for Supplemental Security 

Income and any federally administered state 

supplementation under Title XVI of the Social 

Security Act. for benefits under the ot her programs 

administered by the Social Security Administnllion. 

and where applicable. f or medical assistance under 

Title XIX 01 t he Social Security Act. 

I I I I 

the filing 

II " " ._. .cId eo," . ~U\ .m. 

fl'Onlh. 

Sex 

o Mal. 

0 .,.."" .. 

_ "' .......... ~,. , eo." .. , 

Ibl " ' VOY Ive' u •• Iny a ll .... """," I IO~ "'g """'&11 0 

""",) O''''v ot ., Social s..CU'" V N"..-.1 )"{S Go '" ,el o NO Go o( ' 

"moo .. 

141 , vou "' •• ,.., Hllng ,<>I 

Moth ... •• M.'"~ N.,nel 

"0" lICuntv um '~ II.o<I 

"""'t!V .,,, IU. \10 '" 12; O,hOl"'," 0"",,>10 •• (ho (a(IOW u'Q: 

~a"'0. '. 

"'~ 

1 APllic.nt'. MoUil>\l A<!<t, ... IN ..... "'" 1\ SIt •• , . Ap' . No. P.O. Do.;. A",., A""'IO' 

ZIP Coc!a 

Cit •• IId 5' . ' 0 ZIPC",,", 

,. OIRECT OE POSIT PAY MENT AOOflESS (fiNA NCIAL 'NSTlTUTlONI 

O Cl"'I'i.II1Q 

Go,a n 

o Olt"", ~I R.,,,",,. 

Fotm SSA·8000·8K (01· 20 121 0 .. "0.1'1 .. , E"""'n. 1'."" 1 
20 


dkrause on DSKHT7XVN1PROD with HEARING78762A.012

6. Ie) A,a Y<>u "' .. " .... 1 

D YES Go ,olb) 0 ~ Go I" '6 

(bl Dale 01 ",,,,,1""110' '-"._' , po".., • . - "", m ,nm" . " 1......,'1\._._, " " ~ "'~ W ~ 

I:d' Dk! you. _ ... eve ..... ""V ".he, ""mea 

1~!eIWIln g moO:len name) 0, Social Sec", il~ NOmboltl / 0 '" Go 10 101 0 '" Go 10 10 

,. , . • • , , ," ,""o"'V " 

(!) A •• you ."d vo .... II/IOUHIM"g ' 09O' h", / 0 '" Go 10 16 0 " Go '0 Igi 

-" .. , ..... , 

1M Add'e .. 01 """" .. or "Omit 01 tomeo,," who !..nowo wl.e,e _u ..... ICo"'!l4<>'. onIy;1 .poU •• ;1 1\10 66, 

bl"'" til dl .. bl.d.1 

,. ta) I1Mo Y<l\l Nd .ny "oh", "'''''i''lIol1 ~ 

- '. ' ~ 

II """'" m",. Ood, h ... k \hI. bt" 0 DYES 0'" 0 '" 0 " Go 10 (bl GO lan Go la Ibl Go '0 f7 

Ibl my .. ' 1>1 lallowiow in IOl',,"'1oo aboIlI y<l\l, Ie",,", IpouH. II .h .. o w •• mor. 'hon on. 1o.""" "'.""''''' .how 11>0 ' ''''''''Ing ;"IOI"''''iotI .. ~m"' " tod IJO 10 U . 

"" YOUR SPOUSE 

FOIW[JISPOUSE"l WlIoIE 

I~_"""'I 

' __ 

e.RIH[)~n . .-1 

SOO .... Sl:CUIIN 

OATfOFMAAHtAa. -,_''' ..... _1 

C)AI[ ",A!HAC( (HIllO I_~.""' ,-, 

HOW _A« I.IfDEO 

, II VOU Of" filing lor you,,"' . 1JO ' 0 I_I; iI you " '0 liHng lOT" e l'>ild, go 10 Ie' 

(., A," you u,,~e 10 wor. beea\j .. 01 Inne ..... ~ 

injUlfo)o o. "",,<1,.10010/ DYES 0 '"' 0 '" --0"' Go 10 Ibl Go to IB Go .o [bl Go 10 17 

........... , ...... "' .... ,-, Ib l Eo' ,", 'he ""' . VOU _,,"'e on.o\Jlll.o ",,,,K_ 

lei Whot .,~ Y"'" I~"" .... , '"IU1MtIOl ooodi"" ... 1 

"" Y"". s""' ... 

Go '0 1<1) "" 10 (<1' 

"" j ';';I\·H"''',",'K 10 .. ~O 1 ~I ~, 
21 


dkrause on DSKHT7XVN1PROD with HEARING78762A.013

7. {d! II VOU w",<1 up""" to WQ'~ b<IclIu .. 01 ~I" ... u . lniu';"'. 01 COMi''''''' I><Il0,e vou wefe .gII22. do """ 

ove. pO, ... , who it I I/<' 62 0< o!ckl,. "nob'" '0 "O!~ bo..,..... 01 ..., ..... ~ •• inju,"", 01 c""dillon •. Of 018< ••• ""1 

,. ,.or 

Go '0 II! , , 0,0 1'" , •• -, "" •• ..-. '''IU'''''' '" ~ ,"on' 

Go \a (Ul 

1111 DoH " ... etlll<! ~.va. '''.~''.' WII<> ;I 190 62 Of <>I<lII,. IHIObl. '0 wOlK 110<:1 ••• 01 IAn .... i<>(uI ..... • conditio ... , 0' doc •• sedl 

D VES P."",,', N.,.,.,· 

Soc •• , s..:: ... ilV Number! 

AOOt~"' 

0" Go 10 ,8 

,. Bit1hpl<lce City Sta'e c,y""y ro t 0' ''''' 1I1 . n th. U.S,I 

". YO"' St>ou ••. II hilrtg Go \0 .~ 

~ , .. PO"". ,. AI. yoo. United S,., •• ei.I,..., IlV binM D '"' YES g:;'10 g ilES Go Ie "5 010115 ~'l0 

" A,. 1'0" a ""lUIaI;,"" Unit<>d 5, ••• • e,menl DilES 0 " DYES Go '0 015 GOlort \ Go 10 015 ill" 10 I I 1 

n , lal 

Unile~ 

~ 

SIOIHI 

VOU .. ' Am~'ie.o" r"tIi.on ho<o n".old. , .... DilES 0" D v~s 0 " 

Go ".Ibl Go I. 101 Go to Ibl Go to ("' 

Ib) c''''''~ II", block mOt .hOw' V"'" Am."CB" Indio" " 0'"", 

,~ y"", 5po.lO, lli ~g 

D Am.,ioan ''''''''" bo'" .... Con>'" G/t.u"5 D Alii ... ""'" ItId .. " l10In in Ca,U1!l& G~ to 116 

D M.",l;>of 01 & Fed.,&~ ,ecOliJ~j'<rd Ir>doen T'ibo, D M~mbo<, 01 0 f_.llv "CO\iJni,ed Intllo" T.ibe: 

N,,"," ul T,ibo Go to 116 N"",o,,' T, ~ Go to '15 

D 0,"." At".'k: . ... Indt .... 

hpleln in Rem",~ •. II"", Go to Ie) 

D O'hltf Alllo<lco" Indio .. 

[~pI"'n~, Rom.' ~ •• ,110 .. Go ,,, lei 

, • OIm 5S -aooo Sl( 01 20 , 2) 
22 


dkrause on DSKHT7XVN1PROD with HEARING78762A.014

" 101 CM"k ' he block _W .hal .how. ~O\K cw,en' Immigra' ",n sl •• .,. 

,~ V .... , Spo~ .... Il liing 

0 A",. .oio~ ImmiO'"o, Go 10 " o A,,,,,,,bj,on 1"",,1v<"" Go t" ' 12 

o l.Wful P"' ",,nool f\8oi<1o~1 

Gu 10 ' 12 o l awflll Perm.",,", 11_", Go to .1 2 

0 RGlu""," o Re luoee D ••• '" om,y: Go to ,, 4 00'" olem,y: Go 10 . , . 

0 "'"Vle. D A~y," 

01'" ''''us urln,e", GO!O ' " Dill . ,., ... 11'10 10<1 : Go t" 11 4 

0 COl1~j,joo. 1 fnu"", 0 COM,.; .... ' En"'OI 0.,. "AI"t .d ' Go \".'4 00'" $111", woolod: Go I" . 14 

0 Pa,""'. to< Or.o Vear 0 P.,,, ..... f .. , 0 ... Yeo. (i",o,,4 Go H. I II 

0 Cub.onlH.Wlln Enn.n, 0 Cubon,lHail;'n tnl,.nl Go 10 .,4 Golo.14 

0 0 0"''''''100-11","",,1' Wilhl,old 0 o..!>OI •• ,,,,,,I/l....., •• , Wilhl><!td 00,., Go." ' 1 O.,e: Go 10 ,,4 

0 0 1110, 0 O.M. 

e. pIo,n in 1le!M,l •. • hen Go ' 0 ,<II E ....... in Ren .. ,k., Ihln Go In 1<11 

lal II y .... hI .. . t.,,,., '" hoy • • ppIiod 1M ",W", IIIe ...., .... . <1>iIcI. ". p ... n, 01 . clJil" 01 . US el'i .... o. '" 

II,wl u", .d""Ul d ~r""'n n1 , .. Idom ellen. Go 10 ' 13; olh_i •• Go 10 ,,1>. 

" II yoU . ' 0 ",wlu~v ...."illed Ie. ",,"""""Of .olliae,..,., ,. .., 1.1 D~t& o t P."'"iltsiool _ ......... , _ .... 

-_1 - Ibl W • • V"'" .,,"V ."e ,I .. U"'I. ~ Sw ... SIl<K'"",od 0 '" 0 " 0 '" ~ O!1y por ..,~ or 1II'0I'101Gd by on ""1I ~11on '" !/fo .... 1 0 " Go I" It I Go t<1 1~1 Go to (el Go to Idi 

(01 Gr.. Iho f<>1 low",a ittlo.mOlion .bool tho pe<..".. In"iIOI",", '" II''''' ' ' h'" Go 10 Idl, 

No..,. Ad"' ... Toto""""" NumI,., 

I I -

101 WI .. , wu yo~. lmmlg,olio" Slllta. 14 ""v. 1le10'" .. , .. po.,.., , -, _dlo.,,,,,,,,, '0 '.wl ul po • ..,,,,,,,o. , ... 1<1.",/ SIOIOO, Stotuo. 

. , . - ,,-,," ....... ' . N""" F,om: 

h : To: Go 10 I,ll 

101 If llling.'.." O<Iull. d,d VOl" IH".nt. oye' wo._ it, 0 '" 0" 12 VES 0 " 1he U<1i1od St •••• bol'''o vou w!;to 01/0 181 (loloiU Go M 114 to III Go .ol14 

!II NaMl: aM SOOIloI SecU';I~ Nu..,bo;! 01 PII.onUo. wllo wo. od. 

Nom" Soc," S""u,~v N""' .... ' 

No rtle Soc,.1 Socu,;,y Numbe. 

~o.m SSA·800Il-BK 101· 211' 2) ", • 
23 


dkrause on DSKHT7XVN1PROD with HEARING78762A.015

". ~ .. , _M. '0, I~) "0.& YOU, V<>U1 clull! "J \'<I'" "",.,", beGn D YES ~ D·" 0 " olJbj!!C'e<i lo bill "" '" • • ""',,., ~" 'V "';" , ..., UMed 5 •• , .. , Go 10 Ibl Go to 'l & Go 10 (~I Go III ' 15 

Ibl Ha .. yoo. V"'" "hi", '" your g • • ent I ... d . 

po"'"'" w~h Ihe 0..""" "'0'" 01 ,,,,", ~ S .... "'11. D VES OW DV~S 0 '" lor" ..... " 00 in immigtAIiOl1 t .. ". ""., .- 01 bIlinO 

."b/tIc,od 1<> b,,,,o<V" e'''emoo orl.oI1. ? Go '" .,. Go to'16 Go I. '1 4 Go 10 l i S 

" luI yuu. y"'" 01>01'''' or "."." ,." ocll •• d" W D VES O~ O VfS 0" meml>Ck 01 ".,1"." 01 m •• <......ul io,.,..,. 01 Hili e. pIo", in Go 10 ~ .~ Ia. , ~, 0.0 101 15 

u,,",<1 s,., ... 1 ,60lbl, U"", '&OJ''), 1~"" 

Go to ' IS Go 10 1 15 

5'1~') Who" dKl VO~ Ilrsl m.k~ V"'" home IA "'" Unl,od , ........ - ,.-

S,ot.,.1 

I:f' 11"." . OIl '"-''''' ool5i<\e 01 1"" U";led S,. , ... !nee ,U YES 0 " luves 0 " ,hl"1 Go '" Ie, Go I" ,16 Go 10 ,el Go 10 116 

- .- -- ,H' 101 GNI It.. d" .,. <>1 ",,"'''''''. 0<>10<<11< 1h. Uni,"" Flo"" F,.,." . 

SlIIU. , •. To: 

", I.) Hove V"" bMn Ooto'" .h. United St., ... 11"" 50 

01. , ... OlsUi<1 0' Co",mb!. _ ,,~ .. n M.rian. DVES ~ O VES 0"' '. 'on<l.! 30 con_u""'" I Plio< ,e ,~ . !ibflll <I<I ~/ Ge\o Ibl Go '0 11 1 Go Ie 101 Go to "7 

Ibl Gi,,~ 110. d. ~ I' ''''''!h, dI~. "at.! YOU ki ll !h. a'. H t: ". 01: 

IJni,O<! S,. , •• ond 'hi .t . voo MOI n." " . , 110 Un;t&<! 5,,, .. o.. ~ A."",,"": fo,·IIoW,,""" 

IF 'IOU ARE FlUNG ON 6{IlAlf OF YOUR CHilD. GO TO 117. 

If 'IOU ARE MARRIED AND YOUR SPOUSE IS NOT FILI NG FDA SUPPLEMENTAL SECURITY INCOMe AND 

YOI.lllVEO TOGHHUI AT ANV TIME SINCE THE FIRST MOMENT OF THE filiNG DAlf MONTH. GO TO 

'17; OTHERWISE GO TO 'lB. 

". 01 • v"'" !I"'O'''IP~ "n .~_~ I><> '' '''' 0 " n . ,;'" wlID ,. oNgiblO '''' _"''''''''nl.' .. ~ ... iIV Ir><x>mol D YES Go 10 Ibl 0 " Gc'o " S 

. ' • "0' - • 0' • "",ototy • , 

Go 10 >1 8 ,., .~. iv. I ny 0 ..... ';. lid . kmy w" 'n,~ 0' ~ ~, po"... , • \'Ot>' ." •• ,, DYES 0 " D YES 0"' 

Go Ie Ibl Go 10 119 Go '" [bl Go 10 119 

Ibl l" wl' ~l1 .,.,. o. eounltv WI . ,";. w."''''. fsauo<Il om60 ,.,. QUOl<V 10 ... 0 , .... ",,"lt v 

Go to lei Go •• Ie 

Ie. w •• '''" W"".,,' ... ,1$11.0<11 D YES 0"' o 'Irs 0"' 00 ' 0 IeII 00'0110 Go 10 lOt Go •• ,,9 Idl 0". w",, n' SOI",li"" -, ,- -" -' 

" I., Do ",>0 ' ''''''' "oY oo"""'h,,<1 feu.,., or S'ote .. ... po ..... -. W"""" .. r .. """ ~g "'_ con~ io .... , 1>10'1"'>0<, 0, gY£S 0 " g VES g"' 1'.",101 10 II>I Go'0120 .olbl '0 _20 

". " 0'" .~. 
24 


dkrause on DSKHT7XVN1PROD with HEARING78762A.016

... N~me of Sr ... lCount<, NAIll. 01 Sto,"!Countp/ ['blln wllic~ &I",~ " r C(lun'ry w .. tn. w." ont Inuod? 

Go to leI Go to (e. rl W ... h. W."onl .. tis, .... ? DYES 0 "' DYES 0 Go to Idl Go to 120 Go 10 (~I Go 10 "' .~O 

r'l 0.,. wn".n' "U,bod -, .,- ''"''''''''-'-

PART II - LIVING ARRANGEMENTS - The qlluhOns In thi s section .elet 10 the :l.ignlllure date. 

". C .... ck tile bltH:k which b ....... oell""" v.lII ",_ nlllY,,'II oj' ""lion, 

Sine. , ..... .to,"'",._, 0 -.-

0 Non·' ... ,iM""'.' C ... s"""' _ ..... , ..... , 

0 1M'''''' .... ""'.,-....... ,.., 

0 T,on ... n' or IIomel ..... S...,., .............. . _ , 

INSTITUTION 

" Cl> ... ~ tho block ,h. , odont;liu '"'" IV"" ,,1 1n .. ~U'''''' wi.,,,. you cu"''''''y ,o.od., ltOOJ1 Go 10 fl2 : 

0 &,.. 0 h.b~i!a!;o." Cenl .. 

0 Ol!l~" 0 Jail 

0 Aes, 011\01"."'001 Home 0 01h .. (Specify) 

0 Nu •• ing l1um, 

", GiVM In" loJlowlny inlo"".,ion l bol" Ino INSTITUTION 

101 "no", al )"'IoMi",,, 

I~I 0.,. 01 Mn" ..... " · 

leI 0..1. V"" .x""". '" btl , .... . oed "om ,hi, _mot"'"· 

NON·INSTITUnONAl CARl: 

o F""o< Uo",,, 10 (l,o"p ,jon.. I 0 0 11 .. , is.-ity) 

24. Giv<llhe tallowing inl."ma'ion .bout Y"'" No",,,", ltu.Ion.1 Co,,, 

(_) Nomo ,,11AC:i~IY who'. ~01' I,,,," , 

Fg.m SSA aooo e~ lO t 20121 Pogo 6 

Go 10 125 

Go ,0 123 

Go 10 121 

Go to 138 

Go IQ IJ! 
25 


dkrause on DSKHT7XVN1PROD with HEARING78762A.017

". Ibl """'" 01 ~ocinv el/lm<Y ... dd, ..... l<t1!tpl>one "",bo, 

I I . 

(el Does ,hi • • goncv PIIY ,.,. V- roo",.1Id boordl 

D YES Go (0 138 o NO II NO. who ""v&1 

Go to 119 

HOUSHIOLO ARRANGEMENTS 

n . Ch«k , .... bk><:~ that d..."ib •• your Cun"O' , ... Id."" •• (10,," Go (0 ns: 

0 -. 0 MOIlileHome 

0 AII'I'I"""" 0 Hau ... boal 

0 Room (prl •• ,,, ""_, 0 0 ,,,. , (Specllyl 

0 Room (corr>m<l<";'l "\.Ob~mm,onll 

n 00 you ~". ""''''' Dr onlv wi' h you, ._r o yeS Go Ie 128 0 " Go to 127 

"- I.) GiVI It", 1"U~ .... lng 1<110""""" .""", ".'VOI'" w,><> ,Iv ... wllh you: 

Public 

.\,-- " ~, 

Aoslo,."". ,,, S;" IIdI,. DiflIblOd M. ,,>rd SI\>Cl<>n' Social SUllllly 

"'~ A"I.olion.hi!> mrnIddiyv N,"""'" 

II o<wooe 11.,0<1 .. ",1do'"iI" 22 Bnd IVI. ",0"""" Go 10 Ibi. " ...... WI ••• Go.o '19. 

Fa,mSSA·8000·8K 101-20121 Pa5/0 7 
26 


dkrause on DSKHT7XVN1PROD with HEARING78762A.018

Z I. Ibl Ot>v. .ny",," h.,ad "' 271.1 w"," is UflUt,' "ll" 16. OR I o YES 0.,. (C) b.nw ... " .""" 18 22 3"~ • UIl.n'. , .. '"". """''''''/ 0"' 

Go lollS 

101 CIIiI~ R ...... lnll l""omI Sou'i:III""d Ty". Monlhly "'mounl 

$ 

$ 

$ 

$ 

$ 

, 

" (1100 vou 10' <10 •• ""V"'" who ~ .... wjj!, VC>lJi own 

, .. "I 'h. pllI<iI w ...... you " •• > o YES Go 10 ' 29 0 '" <kr 10 Ibl 

11>1 N.m. or !)o'''''' w"'" own, 0' Add,e" T <leptr.o"" ,,!,,",w ''''''' ,n. ploco wl>et. V<>I' ~'8 

( ) -

(e) n yn" ~ •• 110" .... only wlm \'<><I' '\lOU ... llId <10 no' own ... ,."'. Go 10 tJB: o\II •• w .... Go 10 fl2. 

". (~ I A,., """ I ... you, """'g w,,11 .poUOl) bu';"11 0' ~o 0 '" 0 " 

yOli o ... n In. pi..,. wnero you h •• , Go 10 Ie) 

II VOIj a, •• Child (i . .. o 

w'!I, YOU' p""onl1.1 Go 10 

Ibl; O'hMW;'. Go 10 no 

1"1 AI. YOIj. pa,onl{ ol !><Jy,,,,, or "" Ilroy OW" tho plac. 0 '" Go 10 (01 0 '" 00 '0 .30 whet. Y"" 1 ... , 

(el """,1 1, "'" I",o,m, oM Jre_nc:v ()"IW) """,_ paV"''''''' 

A""""",, $ F,.""",ney 01 Po.monl' Go ,. (GI 

(~I (I Y"" . ' •• cMd 1iv"'U ""Iy willi you. I""""'S. " •• ,,(y W"h Y"'" p ........ Ind .hol! .11"" cl"ld' .... wlW) .. l ""*", '0 ""onnno. " w,th on"" . ;.,."......, .... , ... "". 1" " ..... 1>01<1 • .,.. Iiolog 110"" 0' with your spou, •• Go 

10138; 01l"" wllo Go I. '32, 

". 101 Do you (.' \'<>Ill .i" g with _ _ 1M •• ,en'.( 0 '" Go 10 (dl 0 

l;"bOi,y lor Ihe ",,"oe wh ... you 1 ... , " II I''''' .' • • 01011"0_°'9 wh~ 1"'''' pA,"" I") Go 10 

(1,1, lloerwl. ~ G<t 10 leI 

Ibl ~. you, ... ,,,,,11 , 1 " ••• ,e,,,.1 W. b<!;!y? 0 '" Go.o (dl 0" G<r to Ie) 

_., , - , .~ 
27 


dkrause on DSKHT7XVN1PROD with HEARING78762A.019

DYES G .... """'. ,,' I' ... ,on wi," ,.",01 ij.'iiHIY: Go I., M31 

0"10 Give nem. 0' P"'O<PI1 wit» _. OWf\eull",: Go \0 132 

Idl Wha' I. ,"" omounl . nd Iroq""",,~ 01 'h8 • ..." ".~m""tI 

iIJnour<l: $ FI.q .... ""v 01 P.~"' nt: 

(lolonl 

31, I~.' A •• vou!<ll .r~o,,, who I.h wl,~ vou) Ih .. p ..... nl 

'" chold '" .h. ton~"'" '" 1h" londlo'd' •• """ .. 1 DYES Go '0 110) 0 "' Go '0 lei 

fbi No"", 01 p"'JOn . ... ,0<1 10 Ia""Wd 0'''''' '. """'.nd • ,~. or.d a,d iUl ud8 . ... pt'o .... 

0' i.,><Ilord' •• """ ... ""mhe, .. ,d .,n COde, If ~""wnl' 

lei If y"" . ' •• cnild ~."'g Of1IV with you, p •• on .. , '" only wi'h YOlII p,,,.n!> ond ,_ 0(1"" cI1ildl." ",II<> a, • 

• ub~IIO daMlltIg, 01 w\,to a' ..... In. J>Ot>IK: ..... ' ene. houaollokl, '" iv;".g ~""'" '" wi," Y"'" s""" .... 

Go 10 IJa, 

, I.) Do. •• nvon. lYing Wi,lI you ""nlllbl"O '0 IhO 

hou""old ~ponS6Sr (NDU, See 1151 o r hou_ohold DYES Go la (b) 0 '0 . . .... " ... ," '371 Ga 10 133 

Ibl """"'0' oth .. " can"""!!8' $ 

Go ,., 133 

" (.1 Do you •• ,.1 yau' ,ne.l. ou,l 0 '" Go la 134 0 "' Go '0 Ib) 

I ~_.~.V<>~. ~~y ell v"'" ~"" ""p".,ely "'''' 01""' 0 '" ~OU"'hold meml>,,,. · Go 10 .3. 0 '" G. \0 .3. 

". 00 ~"" """'rIb,,'. 10 ho ..... l>01~ .'pttI ..... 1 

D ¥ES A~ .. a\JII M""U ..... A"""",,: $ Go 10 '35 

0'° Ga 10 '35 

'" '" ~" "". B ""m I g'"""""" .h ""yo,," I" ,...,.V 1M .... , .... 01 ya", ""O r. 0' ,he """,,,,,old "",,,,,,,,*"1 0 '" Go 10 IDI 0 '0 Ga la 13~ldl 

" .. e Ih . .... ""', . ar es. " " ,e opho"" num '0 II,. ",,,..,n ",II • .,~ ". 0" "II"'''"'''''' ; 

lel W;~ IN I tlo",,,.1 \!,i, I""" COVIf you, ,ha,. of ,''. 0 '" Go '0 '36 0><> Go 10 tal ........ oa!"'kI npon.nl 

Id) 11 YI. con.ribule 10 .... ~ I",ut.ehotd • • ""n'.' MId ...... ' " . ... ted "NO· 10 bQl" 331.1l< 1111 , Go To 136. 

Y"" "',.w .. ..., ·V£S· 10 .. """ 33101 {II l3lbl. Go I. '37, " II Y"" d(I no' COIIUIbuI. ' o ..... d holla.hold •• ~ .... a. ""'0 "3a, 

". 11., "".11 0' oil nl 1M amounl l" '34 iL'" I", 100M 

D YES G"'. Amou"" $ Go •• Ito! 0 '" GIl 10 Ib' 

Ib) 101"'" nr oi l I II .. 1m""", In 134~'" '0' 0I,. 11'!/ 

OYf.S GI .... Amtl.",· $ Go,n '37 0 '0 Go 10 IJ7 

,. ." R>,m SSA aoo 11K 101 2 21 .~ 
28 


dkrause on DSKHT7XVN1PROD with HEARING78762A.020

37. W"", i. ,ho 1 .. ..,011" mo<t lh/v ",.".,," I ,h .. ollo"'''~ hou ....... '" .XI_" ISlIcw 1.".00 ova' 'M .... , 12 fIlM"'. " toIel' ."" ho". -. , •• idlng.' ¥"'" P""'" ""d,~ .. I ... ,IUon 12 """" ,,,. ,, "", ,"""", ••• '''1]0 ' 0< " '" Hlan,,,.. VOU ""vo rukled ,\ vour pt .... " . dd' .... t 

CASH EXPl' S~S AV~R G~ MONl HlY AMOUNT 

"""" Icomplot. only" '331. , & M . ,. I no",o,ed NOI , MOl191'\10 a' 11 .... , , 

PtOI)'''' Y 11\4lJ,.""" III ''''ll .... d bV ...... ,g.ge """""1 , Real Propet,. l • ••• , ~Ie<: k:i y , H •• ting F.,.I , 

", , Sewe, , Go'Dll/O lIomovol , WI ... , lOlAL , Go 10 138 

3B, (., 00tJs 'MO .... w .... _. NOl UVf wlt n you pay 10', 0' pro",de you 0' Vou, ho .... t>OId III .PP"""DIoI, . 'lY 01 

VOU. _ 0< """II., il~"'1 

D YES Nomo 01 P,,,,,kHlIPct,,,,,, '" AII''''".I _____________________ _ 

U .. 0' 11 _ ___________ ___________________ _ 

I>I\ '~tv V"""" $ ________ _ 

D NO Go'o(~) 

Ibl Oo<ts MY""" wi", ~"". NOl LIVE w1l11 Y"" Diva you, III VOll' 1.,.....tIoId m .""licable' money to p.Ity 'III 

' nv 01 VOU' or.,..,.,' ""uJohokj', ",od 0' sholt •• i,om'l 

D V[s Narne 01 Ptovl<lo. 1""'_ or AlI"neyl _____________________ _ 

U$1 Of I,,,,,,. ___________________ ___________ _ 

,., .. "hIV V.'"", $ ________ _ 

0 " 39 1.1 H .. 'h.llllo,mo'ion g,,,.n" 121).38""'" ,1>0 SOl"" 

inc. , .... ,,, .. momon, 01 ,h. Iffing <1.,. ",,,nHII D VES 00 \0 1101 

D YES e'pIa<n m Rema,,,", 

'~en Go 'Q N O 

Go to '39 

0 " E.pI,o" I" !I.ma,h 'hen Go to I~I 

D NO Go 10 140 

PARl III • RESOURCES · Th e Qutlstiolls In Ihis se<:tlOn perlaln t o the first m om Bll1 0 1 t he filing 

dille mo."h. 

4 0. 101 On Vt>\, own, '" _ V"'" "."... 8P1"'.' I."""' .... 

wi'h .... V othll< per .... '. ""m.' 0f'I \..,. liflo Q' &tlV 

•• h,,,,,,. 'ou'o, u""k, mO'I>!"v.le, CO"'Ile'. ,'''"', "'c,11 

rOl'" SSA 8000 ~ IO t ·20' 2) 

DYES 

Go Iu lu) 

V"'" SpoUI. 

DY£S 

Go 10 Ibl 

0 " 

Go 10 14 1 
29 


dkrause on DSKHT7XVN1PROD with HEARING78762A.021

. C"" .nl 

Ib) ow ... ,.~ ~mo O"" ipUo~ \l10<l for a, ' Amo,-,'" 

(V .... f. M. o & od~1 v ..... o.~ 

• $ 

$ $ 

$ $ 

$ $ 

... '01 Do ~"" own or "'. I'<IU ",,'1""'11 .ny Iii. illSu, o""o ,- Yo",81>O<10, 

poIO;lnl D YES 0" D VES 0 " GIl to (bl GIl 10 ,.2 Go to 1M Go to U 2 

", N.m. " A.dd,"" 01 

OWI\f"~ om. No"", 01 In,"'ed In,,,, . ,,,,. ComPIIM Poo;cV N""""" 

Po!;cV 1' 1) 

Policy (' 2) 

""".y IUI 

1\""""",. 

Di"';<lend. II\!!On. 

foe. V ..... Cnl, Sun.""., V ..... 0,," 01 PY,."" .. '" " '" 00 

Policy 1. 1l $ $ 

PoIooy (' 2) $ $ 

Policy ('31 $ $ 

10J ~M Apo"," PotteVI 0 YES 

""!icyNL>mber. 

Amount' $ GIJ 10 'U 

" (I) 00 you 1..;,1"" ....... " '" 1"""1v wl,h ."V ,,,fW ,- You, SI»U" 

pe'lOn) OWn""" '" 00 '" " lila •• t., •• ,,' OW"." .... 'P ."., ... In .. r ""I>',>to~",d •• ,.,.1 

n"", • • '''lU''O'' 01 1,,>I<l 10. , .... " •• 1,," as "" ",,,,,,,,,,,,,,,,1 0 0 0 0 

""' """ 
30 


dkrause on DSKHT7XVN1PROD with HEARING78762A.022

hi G .... ' " e I_wing Io'orma.;"n 'or "". 'Ves' ..,0"1" .. 14210'; o.hefWI .. , Go.o n3. 

Own ... •• N"",. Name 01 11 ... " ,,~ Amoun.O .... a GiO& Nom. !I. Ad<lr .... Dl !lank o. 

OU .. ,O'III'"".'ion 

, $ 

$ $ 

$ $ 

$ $ 

" (a) 0<> V ..... aWn. a. do ... your ,,""," apet".' or! 1",,_ 

.Ione D. ",Tlh"W 01"'" pe,....,'. " ...... , "W 0 ' ,he 

,~ You, S""" .. 

o.ow"'~ i,.",./ '" "' '" "' C • .., .. _. with v ...... 0' a" ywhe'. l!lJO 

F",. "" ... l ln""o,;"n Accou"1O 

Ch",,~lng 

Sao"'lJO 

Credit Vtlion 

Ch,'."""o Cklb 

limo O""".".IC<lflllic., .. 01 0"",,",1 

1"lINklUltI Indl .. , MOIKIV Ao<:""'" 

0" .... Iincluding IRA, .nd O(Iugh "CeIlU" .. ) 

(hI U oM'he """10 ir> . 4 31., • •• ,,"o"'orO<! "NO". Go 10 ,.4_ for onv ·ves· .... "1.,. give 1M '0110"""0 

Io,ormotionO",,,,,, a/T.u"~·' N~m nll om V"' ... N"",. & "<!<Ire •• Dt !lank 0' OU",. I~n"'.,.;.,g ,~. O'iJ.V>i.a'oon Numb., 

$ 

$ 

$ 

~ .. ~ 
31 


dkrause on DSKHT7XVN1PROD with HEARING78762A.023

« ,., Do ~"" gl.8 ID "",m, .. k", [0 /Ill '''"' My 'U,.nOlal ". "., ~u'" I '". 

.eo".<I. I,,,,,, n~ Ilna,oelo, on" ilu'"",! DYES 0 " D ns 0" G<> 10 1111 Go,~ lb. Gu 10 Ibl GolD Ibl 

Ibl Do you own 01 doe . ........ ' _ a""" .. "" ony 0' '". Your SpoUN 

,.'" follo"""IIl lo",": YES " '" " 

S",,,h 01 ~u,. .. , F" ..... 

11<>"'10 ,InCluding U S. S8.ingo Bond. , 

f>romls.or~ ,",DIn 

r'l>OtlI 

O'h~' , ...... 'ho' con bo , ... »0<1 in lo "".n 

10J!f d , ""'- i,,,,,,. in 1441bl " 8 a".wc~'" "NO ' , Go '0 145. For ony ·VES· ~n.w". give IMl lolk",,"'II ,"'o,,,,.,"m 

Ow ...... 'IIIT, •• ,""'. N.",. 01 It"", Vo'''' "'"m" '" Add rou 01 Bank or on"" 1<Ieo" lyiny 

,,- Oryonl •• ,ifKI Numb,,, 

$ 

$ 

$ 

$ 

.. 10100 YO" own, '" _ \'OUr no"", "I'""IU I"""" '" - •• _. with any ,,'10 .. "",aan'~ ""n,o' On any ,,,,,d, hoy .... 

bol~li llll . ,r.O' I""''''UY. 11<_1. In o" , <IIUUHf. 0 '" 0 " DVES 0 "" 

<QUipment. minoro' ,/gil", ;'omo ln .... ,. d_pO'" tHI'", Go [0 Ibl Go 10 .46 GOloM Go ,0 14\l n..,' ••• , ooid. h" o""'g""""" '" ","ro. "r ony 0,10", 

_"'IV 01 any om ,nl' toftl no, be.., oI>ow" 

_n\'WhOle olIe 00 "'" .ppIic.1ion 

Ih) Deocri"" Ike P'OpOrIV IJoe'..,'h .... olu , 10<;. ,;"", ~"d how II i .... o.J, If 1110> IlI0flollIV if.!>q1 _, MW, 0'1"'" w •• ,. "' .. .., ... '1 0<> YOII plon 10 ..... 'lla "''''''''IV "'lno lu1"' 1 

,~ 

h"n f2 

FOI'm SSA 8<100 BK 101 2012) 
32 


dkrause on DSKHT7XVN1PROD with HEARING78762A.024

". .Um~ .d Cl~""'1 

Own .... ' . N""", M"~~I Vol"" fn ... os ......... VOIUo W'''lJIIgo Owed 0<111"", 

$ $ $ $ 

$ $ $ $ 

$ $ $ $ 

40 ~') U .. n Vt>\J 11/ VOI# .""".~ lIC~il ftU any uHI, a>n<e I ~Id , .... ",,,,,II',,, 01 ,,... h~"g <I.ot. """"HI 0 '" Go 10 IDI 0 " Go IQ let 

IDlbplail" 

(el Ii .. ,""'. _ " "y Woele ...... <Se<:, .... ~ " '" 

".1"" ol .. "" 01 ~OO, O\>Qu.o' •• eao'"cn olo"" II ... Ii,", 

moo",", 01 Ih' lillog do l. 11>0 .. "hI 

D YES Go 10 lal 0 " Go 10 '~7 

, ." I". 

" '01 H"". VOII 01 Y"'" .""', .. OOId, 'fon.I, ,,. d ,i,,", 00 aU, "po ..... 

"''''' ..... 01 01 gt;." . WIV •• "V ""'''''Y '" " U"" ,,, .... w. (lroClWing m<KI<IV or QIOIIOf'V ill 10,01111\ DYES 0" O VES 0" """,,_~ r"'l. since ,ho ~., n_m "llhe liltn g d". "'''h ". wi1h. , 110. 36 n'U~ h' 1~." 10 11>01 m,,,y,,"ld 

monlh? Go 10 (bl GflIO 1&) 

{bill Y"'J c<. ownO<l ""Y mol>OY " , "'_W .... nll 

ono\lo., ",,' 0001. 1, a id you or ""y co-owne, •• 11 , 

II .... ' .... , 0' IJ/Yo OwlV ""V co·own"" """'"V 01 DYES 0"' o YES 0 " pro~'" w'lhln .1Ie 36 monlt .. ""lor 10 I~ " 1,IitIg ...... 

""""h? 

IF YOU ANSWERED · YES· 10,. 1 OR (bl. GO TO I~I , IF " NO' TO 8 0TH, 00 fO '48, 

,., OWNER' SICO ,OWNERS 100\"'" DESCRIPllON OF PROPERTY 00\n' Of OISPOS .. L 

In'M'1 

ITEM r2 

HEM ,3 

~A"'E .. NO AOOAESS Of! I1EI.A T1O N51111' Tn IlWNER VALUE Of 1'I10PERTV o\ND'OR I'IJRCIl .. SER OR RECII'1ENI AMOUJ<T OF CA~ GIFT 

ITEM .1 $ 

F",m SSA ~OOO'SI( IOI ·20 Ill ~. 
33 


dkrause on DSKHT7XVN1PROD with HEARING78762A.025

, . $ ITl:M 12 

rrEM ra $ 

S,llES PIlICE OR OTHER ... RE OTHtR CONSIDEIIATION D R DO YOU S TllL OWN MA IOI' THI; CONSID[AA. nON P!lOCEEO$ [",""CIEOI UI'I. ... IN . PROPERTV I 

ITE M tl 

ITEM n 

ITEM 'J 

SOLD ON OPI;N MARKETI GIllEN AWAY? IRAotO roo GOOO$18ERVlct:51 

ITEM'1 '" " '" 0'° 0 '" 0 " If'iMn ". " '" " '" ' 0 

ITEM '3 ". '0 no " '" " ... 1*1 Do V"" hove "nV . 1","' 0.' .. 01. ,'" 'M",' ~ ,., e.pen .... ouc h II Mulal eon"",,,,, " u''', auf"_nlS, D YES 0 -- " ,"nyl l'11<tg 04.8 yOu In.end ,,,, yOU! b .. 1aI •• ""n_l D YES 0 " 

Inc""'" OIly I,..,... n'."'~d in ' 41 ~n~ ' 43-'17. Go t" (bl Go to 149 Oo'olbl Go 10 .49 

F;OESCR1PTK>N IW .... '. PP"''' '' ~. !Ii'" WHEN S£T ."'" s .'hl' .... nl "'9."I,.,lon .. ,d "''''0'''''/ VI\LUE ASID, OWNER'S "' ... ME Iiw n....,bo' .1 """", .......... , '1 .. ,,1 

$ 

Ilem 2 

$ 

fDA WHOSE BUlllAl IS IIEM IRREVOCABlE1 WlLl lt'{TEREST EAANED OR APPRECIATION 

IN VALUE REMAIN IN THE BURIAL FUNDI 

Ilem I 0 '" 0'° o Y£S Go 10 '49 0 '" 

hpJ..., in lei 

I,,,,,, 1 0 '" 0 ' 0 o VES 0 '° 

Go to '49 E>pl .... In lei 

101 E)(P\.ANA11ON 

F,"", SSA·8000·BK 101 101 Zl , " 
34 


dkrause on DSKHT7XVN1PROD with HEARING78762A.026

... (of Do V"" own anv e<!m<lI<"" 101', .'VP,", . osh", '" "., -" VluI,., YIn" n,ouooluum" or h~, ~lorin lor D YES 0" DYES 0" bu".1 PI ~nv hn,l. to.l. ~, m., .1 

Go I. ,bl Go 10 ' 50 Go ",Ibl Go '" '50 

(bl OwnOl" Name eo.ctlpl;on For Who ... Burl., Il.'.' ..... hip to V..., Cu". O' "'1< , .1 V ..... 01 V()<J, Spouse 

$ 

$ 

$ 

Go to ' 50 

PART IV •• INCOME 

50, I: ~l Sincoo the , ... , momenl 01 1M lilir>g <III. monlh. ~ ..... V<KJ ( • • vnu' .""use' receiYld., do you 101 V<>Uf Jpou"" e.pecl to ' oclill, in<:_1n 1h, "".1 14 ,- You, 5""" •• 

""""M hom MY.' ",. lollowiny OOII.e",,' yeS "' "" " 51010 or l"". 1 A",.,."", Boot<! Of' "'oO<! 

R. ,"900 en" Alolllnnn 

' ..""",.rv A .. fs, •• ..,., 10< "'_ ... Fom~i ... 

Gen ... ' A .... l.mc. h om ,"" 8", •• u .llrodio" Alllit. 

0 .. ,,, .. AI .. ' 

II. ,,,,",, 8et1.m. B •• "" on N<tod tP .... O;,".lIy or ' ..... IIK.ly .. " O."",,<\euU 

II., .. "" Pav""",,. N01 80 .... "" NM<l!Pold O~K''''' Or 111<11,,,,,.1\1 • • • 

Oo"""d<oMI 

Othor Incom" & Md ... Nettd 

5<H:io1 s.,;u,,1V 

Dlact L"tI\I 

A.il,.l d RII,,,o",,,"' &.old 0 .. ",11 .. 

OW"" 01 P."(,",,,,' "' .... 11""""" ICi.~ Se,vic., 

PoorIslon IF", , M,~ '' ,V, St~W. Loctl. Pl i",", 0- R.tile"",,' '" DI .. bUiIVI 

""ij, .. y S"""'. I P.V '" Allo ..... "<1 

Unemploym",,' Com""n .. ,.,n 

For"' SSA·8000·BK 101· 20121 POll" 16 
35 


dkrause on DSKHT7XVN1PROD with HEARING78762A.027

" W"'~ef" C"""""''''kH, 

5'0'. DiM.,..". 

10.",&""" Of ........ ,,¥ Pay",,,,, .. 

o .. ,_.m"v.ltln 

R"",oIJloaH 'necmO NOII,om 01,,,,,. Or Bu.." ••• 

Alimony 

C~I"'S""""rI 

Q,ho. Ilu< .... 01 Indi"" AJl$ ~' ,"".,.,... 

G.mbIlngllolWIV Wlnnir)~ 

Ollie< Incom" '" 5,,lIII0'' 

Ib) nNe tho 101l01'llng Inl .. """M", 101 ' ''Y bIo<;~ "'-I;ed YES", '50101: "'he.",""" G<I,.,SI 

~,~ Typo 01 .... ome f.eq.-."v 0,1 Oat. E>c ~~ 5""'"8 IN.' ..... Rec,"oing ... """'"' AcId •••• 01 Pet""" kI",,'IIVI"II 

'"com. Ro<ooo"" Pa."",", .. Aeotiy~ 8an~. ~.n".Uon ""u",l><. 

or Comp""", 

$ 

$ 

$ 

'F ila\! EVER RfC£I\lEOSSI BEFORE. GO TO l SI ; OTHERW1SE GO TO In 

" Ar. Iny , ... ,p.ym6/1" beU>Q <""""Illd hom bone" ,. ". "., ,,""'. vou ,oe_ !rom lhe Soci" Sec",i'. IIdminis""'ion, Aali.O&d RoII,,,,,,,,", Board, Oll ie. o t Pe,,,,,,,,,,,, DYES 0 " DVES 0 " MI.III""1""', V., ... ,,.' Allo,,", Milil.ry r...oionl, _.,.am in Go 10 152 

~:". '" Go 10 '~2 Mili,.rv Spoci.1 Pa. A1low.nc ... Block Lu<\9. Work ... • O",O,kl, ...... k •• CompOflHlkm, '" S,",e Ois<ob'liW 0, Urw:mplo,moo' n .. , Go '0 ~n Go 10 

B .... ti1 .1 '" .. , .,. S<nc' ,,,. ,irs, momonl 01 ,,,. "'ny dale moo,h, hiov. D YES 0'° D VES 0 " ~"" "'C'N"" 0' do you .'",,0' '0 ,,,,,.iv. a"v "",.,. 0' E.~ .... "' Go '0 '~J Explain In Go '0 r~J o.h,,, ollts whith .,. It<I. o.'hl "'"'~ .. , ..... , Rem.,h. ",en 0 '0 '53 Go 10 '53 

" '01 Hav. you \01' "' ' .""" .. , ,..,."''''' .... ge. II! ... t D VES 0" D VES 0 ~ 

P ..... """'" '''.I~.' """''''''' 01 ,he 1i00g d ........ "'!! 

,h'''''gh Ih" £Y!!",,' mool,,1 Go to t~1 Go 10 1., Go.olbl Go In 1., 

M N.,,,,, _ "dol! ..... 01 E",""',., 1;"'<1000 ,eI..".,.,... "y",,,,,, .... <1 .... 1>I>IlO, II \.JKlwnl 

,~ "'" SpoUM 

Go 10 101 GI, In I~ i 

e,m SSA IWOO B~ 10'· 2012, " " 
36 


dkrause on DSKHT7XVN1PROD with HEARING78762A.028

" '" 01l.8"S! W"food 0"8 10., P3KI D.'~ n"XI paid ImonU., do ...... " ''''''''th. ~.V, , •• ,i Irno",~. d.v, . ... ) 

"" 

,-

51''''''' 

~~I To,,,, mon ~. WOII'" ,,,,,o/voo (bo "'~ .... y o. n'OU"' o. pou ••• mQun 

d.lloc,k><1., , , 

,.,001'0<1 'II< ~""' r 4PC"~) .'poo"c ,..., ~" • .."y - "". ~":'''''' .. 09ls" !!Ie ""., 14 """,11,.1 0 '" 0 " y~S 0",0 

Go 10 111 Go 10 ' 5" 0..,0 (II Go 10 '5~ 

,- Your S""" .. 

ta' 131". ,,'" 10ll(lw,ng ;"Io"no,ion: 

RUE OF PAY AMOUNT WORKED HOW OFHN PAY OA" OA DATnASTPAID 

I>f:R PAV PfRIOO "",0 o.o.TEP.o.1O ,,,,,,,,110 <101, \'H<I 

,- , 

,- , - - •• pou •• 

I~) Do VOU " ' P<tCl on. ct>ong. in W_ Intorm",I"" Dv£s 0 " 0 '" 0 '" poovidod .. '53101 Go ,,, ~I Go to '5~ Go 10 Iii Go 10 'SA 

iI) ~'''' ''n Ch.~!IO: 

'" You, Spa" .. 

". 1., II"". you _n 'I .,,,ploy~d 0, ""'" """,..on"" .h. g YES 

,- ,-- 0'" g, VES 0 NO bo1iio""'U n l ,he t •• able y.", in whlOh ,,'" r,",, ~ lI t~ ololb, Go 10 '55 lolbl Go ,0 '55 """"h Oct" •• Of 110 YOU . ' POOI'" be .. It,..."pIoy", In 

,ho c""onl, ... !l4B yeatl 

Ibl 13,..., t~. 10Mwing inl",maUO"; n Go to '55 

D.,oI,1 So< &><<>Ioyed )'PO 0 _ ....... t .. ,y •• ·r. ln' f .... ·" 0_- t .. ,y_·., ,"",""'Ii, .~ 

, , , !.I"OI01 ' ·f","",yad lyDOO'I!u ...... 1'111 v ... ·.: " .11 V ... ·•· Th .. V ... ·" 

G ..... """""" No, Ptoli, ~,~ 

, , , ""'nl SSA·8000·8K ,01 -20121 " ()O 18 
37 


dkrause on DSKHT7XVN1PROD with HEARING78762A.029

66.1:: V<lU 0/ V<I'" ""oooe ",. '~'nd 0/ d'''blea , dO VOU 0, 0" poU" """ ....... _CIlo' •• pons" ,ho' VOU pol<! w'""I, 1M. Y~S 0 " 0 '" 0 " ....w ...... ~ 10), you 'U "'0<11 hpla", kl Go 10 '58 E'n'Oln II> Go H, 'S6 

Ro"",,~.; ""'ma,k., Ih""GQ 10 In." Go ' o ". ". 56. ~) DoOI VO<H ~_.~.'.nl W,"" '" ••• wi" , VOU h ..... D YES Go '0 Ib) 0 NO Go I" NOrE I'" pay ""u" ",,,do<M .,,''''',,'' 

~DI G;",., omou", tnd 1f"".......,V 01 .""" .... d.no! 

m""nt: '.n"""~Y · 

, ",mooll PIV",""' 

GQ 10 tel 

11<) GNO Iho l<>IIowinO ,n,o",,",k>n .boll' Iho P"OOf\ 

,- , ... , 

who ,. ,,,ovn Ihv .. PIV'" ..... · 

NOTE: 'f YOU AIlE f iliNG AS A CH,LO AND YOU AIlE EMPlOYED OR AGE 18 · 22 [WHETHER EMI>\.OVEO 

OR NOT), GO f O '57: OTHERWISE, GO TO t~8 

d.,. m",,' h7 57, I~ ' H, .... Vtlu . " . "d .... lel><>o' '~ul."V "'",:ft I~ liI"'II D YES Go '0 (dl 0 NO Ga to Ibl 

eo'..,d .. mon''''' 

I~b) 1"-10.0 voo be .. , ,,'" " I ochuolJo< 'n",.,hln 4 D YES Go 10 (.1 0 NO Go 'Q lei 

leI Do 1'<>1> ". .. , to O"'"d _ ,oill""". dlulny 11>0 D YES E.pIairt .!>&oN ... 0 NO GQ .o ,&8 

no" 4 """".01 .. R"", .. ~. ond Go 10 ,oil 

Idl N_ 01 5<"001 "- o. Sd>col r;o", ... OOIH.'y~OOj 'our .. 0' S'lJdv f,Otn To 

-,- _ . ... n ............. 

PI..,.,;.,g ,,, ... ,,""" 

PART V POTENTIAL ElIGI81L1TY FOR FOOD STAMPS/MEDICAL ASSISTANCE/OTHER 

BENEFITS · II 0 Coillomia '"lld."t, S~lp ' 0 '59 

~ 0 .. "" ..... ~ 

... 101 A,. ~"" .U" ... ~V ,eo".lna 'bOd 31"",,,,1 gm g," 0101111 Q VES g" to I~I "'Olb) "to (el 

IDI po., Hly

31) 

e 

","vol 

V<>u IOO.J\l . I..,o""icl'ion nollee ",i1 in M QYES t" ,.) 0" 12 VES g" Go '" U9 ot" lei 10 '~9 

10) 1"-11. 1 \'()U hlO<l (0' 100llItamPI In th. las, 80 ","1' . ' 12,,'0" (dl g" ,n lo! Q, YES g" ' 01<11 '010) 

(d) H8YO ~ou ,,,,,,,,,'"d.n unlaYo,oblo dll",.ion) gVES 12" ",0 ,., Q YES g" U ", .59 ,,10 (el tong 

101 II OYOfVone it> Ih .. h""oohol(l ' e<:<I,val "t io .~nlv"'ll lot $SI, Go '0 !II: o.h.,w, .. Go.o ' 59. 

III Mov I t~"" C>IlI food ".mo 3l~i<.otlon looMI gYlS '0,59 @" ploin" Igi 

D YES 

Go '0 159 8" "p",., ,II til) 

lUi futl~ •• ""k>"· 

om , . , ." 
38 


dkrause on DSKHT7XVN1PROD with HEARING78762A.030

" iI ., " I you 

""' .. 811'0. IU dO"" Y"<)I 51.,. , 1I\X'«e', ouch .. ,",.".,,,,,, 

IVlllaIlIII ' " pay ,<II VOUI ",..u.:aI car. . ","V"'''''" ' DI ",.,1Iir.al CO/' ,Dr vau" 

M ... 'i<.aid ~J\d I, V"'" legol '.'l"l"slb~i' V 1110 51,,0 coo,oo, ptovi<l~ vo ~ Modloo", I, VIN 

to Ill .. Mdic.id e~"".""'nl . 11 you _ lu""'" ",'",moWn, you ""'v ."",, •• :t YD'" "'",I'c"id 

,ightol I" 

, ",*<1",.' ClJI 

, " "" e~ 100 "'" 

VOU, your '"",'"0. Of. 10""",, OPOU" 10' 

II V"U .,. liIIr1g I •• c~_~1 ""et' 

" 

D YES 

Go ".,111 D~ 

Go ' " '60 

" 

• III ...... , 16 , ONLY If YOU AilE APPlYING ON BEIlAlf Of SOMEONE 

61 . III N ...... '" P ... ",nlllu""cY R_Wlg 

Ben""", Ilol&' '''"hlp 10 CI. Tman, 

Ill) 11 SSA ~el~"l\In .. 'MI Ih" cllI,,"~,,' n""", hell> 

""'MQ,ngl>enotit., o V"" wish 10 b .... lOc'O<I 

,.p .. "",'."". I>'IY"" 

D YES 

rOO! 500.1 Sse"'"'Y No""' •• 

I", EON, 

0" IExpl.in i" A..",. ~., 

PART VII •. REMARKS .. ,Vo ... !n~Y use Ihi ~ splice for any up'on"'i,,ns. En ter Ihe ilem numbe, 

balo •• 98ch explana1ion. If you need mo.e apace. use 8 signGd lo.m SSA·795.) 
39 


dkrause on DSKHT7XVN1PROD with HEARING78762A.031

PART VIII IM PORTANT INFORMAnON ANO SIGNATURES 

" . 

IMPOR f AN f INFORMATION--PLEASE READ CAIlEFULLY 

.. foiur. 10 ,e!»""d: c","ngoo ",ill\in 10 day •• !t., ,h. 011<1 01 'h& ",o.,,,h in ",1>I<;l\ 'hI c!>tn90 """'" 00011<;1 , •• ul!;". ",,, .. II V It(IucHUII • 

.. Tho Soc,,", Secu,lty Admln .. " .uon will thec~ YOUr '!I'''''''''''' i nd """",,, ... in ,,,,,,,,do wHh ,,,,,,,,dO I,om 

other S\~ IO ond Fode,a' 00_. !ockldll'lU ,hIIlnlm"'" R.v",""" S.",;"". 10 ""' ~e ..... V"" e,e pold U'" 

~o,, "'" .""",n!, 

.. W. h.~ ••• k!>d y .... I", ""' 0,,. .. 0(1 10 QQlem. hom "'V .iII.""lo' . ""Mion, ony ""0 ... 11' '""O'd obo,,, yo .. 

",a, '" !>tId bY 'h~ "" " lUll"" W. w'" .. ~ II/I.nci., ln>liMlono 10' Ihlo In.o",,",lon "'" ... "' •• , "' •• l>Ink I. I. 

~_ ,0 doeltle. lI you 8,. oligibt.o 0' I. YOU con,l_ '0 "" ... igiblo'OI SSt _m •. 0"" •• "U,,,,;'o<I. •• "",,,,;.,;00 10 """laol IIrr.nelallrr.ti'uIKIIl. ,omaIn. In ell ae' ,,",d """ 0' 'h. 10110"'"'9 """"". 111 you.' YOU' 

<pUoIH """'y ". It, ",'il"g II,,,, yo" "" """".Iit'll you' I>8Im,o""",. 121 yo"" ""plica!lon I", S51 10 ,"">led .. 8 

.... , ..... _. IJl v"'" 0);01l>11i1\' '''' 55) ,. ,"""" •••• '" 141 w. no ""'go< con.lde,"f1'IJ' $!IOu ... •• i""""", and 

,e_,,,",, '0 be ... ,ilol;)Ie 10 ' OU· II you", Y"'" _ .. do ""' give 0, c.""eI ,Qur perm, .. "," yOU ml, 001 1>0 

oligibl. 10' SSI ."0 wo m. y IkIoV VOIlI cl .... 01 .,<»> you, ,,"VIMIlII. 

". I docl.,. rw><Io, ""na"v 01 ",,!ju'V , I h ..... umin. d ...... Inlormotion o~ 'hi. lo,m. and Oft anv 

oeconop!M1ylng lIatonlO"' ..... Io'm •• ""d It II ''''a and """.el ,a ,tHr boll 0' ",. ' 00"'0.1\10_ I undo,, '.nd 'ho, ... ,01>0 who kn<l"'ir>gIy gi .... 101 ... 0' n~.I .. di"ll ... '.mon' . bo",. mo ' otio! 'u.in ,Il10 In' o""orian. or 

«ua •• '0" '. "'" 01 •• ' 0 do '0. commits. c~ ..... I>!! mey 1>0 .",,' '0 ""1<1,,. '" moy ' OC" 0",", poQlio •• '" 

bo.h. 

OU' Slg"""". (floa' """"', _. IrlHi.~ 1001 M""'J (SIgr>;" ink.J 0 ... _ ............ , 

SIGN 

~ ~.- ""'0.) wh ... w • .,.. ,"", .. ,...., 

HERE <kJ, ""u"" 1liiy' 

I I - Sl'Ou .. •• 5ig .... tur. (~o"' y 11 ooppIy;"g lot pay" ........ ) IFi'" ,," .. , • • n>irtdjel"l"oI. In' ,,,,",,,IISill" '" ;"k.1 

SIGN 

HERE ~ 

" ru •• e bl .... d '" ~,..,I g. +m""~",,. cI""'~ ,he t~ 01 m", you ",I'" 10 ~"" Ir o'''~' "_""""' .... , 0000 0 ____ d "",_ " .,·Dooo, ... ". _ .... _ ,,,, 0 S,"-d ... , .... $ .... CO..,. ... !·C_ 

s,......,.""' ... t .. 'w'"" O _.&!k .... ""'~ •• ","""·o;\oo. 0 5'_04'_...".,.,1:. ~ ......... _._co 

". WITNESS 

You, ."plica'"", <!<le. nO, ,d lna,~v hII ..... 10 be """" .. ed . It. how ..... ~ • • ou hlv. "lI"I'd ~v m.'~ IXI. tWO 

"" .. ",un I., U .. siU<JII>; wlIO " 101'1 yuu, MIUII Slg" """'''' Oiv">IIII .. k 10 ... "<l<Iteo., 

1. S'g,>oll,'. 01 Wit" ... 2. Sr O"OI~I. 01 W,'''" .. 

A""' ... ,~'"" .......... Su"" '''Yo $", ... ",,~ liP CO<IOI Add< ... 1_ ON! S" ... ,. eo ... S,."" ond ZIP Cod.! 

0'"' , _II" II 
40 


dkrause on DSKHT7XVN1PROD with HEARING78762A.032

RECELPT FOR YOUR CLAIM FOR SUPPLEMENTAL SECURLTY LN COME 

fII.m8 Social Secu'ity Numbo! o.t. 

,-, Socitl Stnnr,it1 fIIumber O.le 

111"" h ••• • Q""'''on Of ..,,,'e'hinll '0 ''''''''' CI~: Soc'OI s.c",iIV om"" you may ",o.it 0' .~ vou, ,oq"""l '0: 

I I - ... _01 1<1,...."., "", ,bOUt 5<>00., S .. ,;,y,,.;lIt .... w.boot •• t .. ,. .. oc oo!"CI!'~v'AO. "" , ho I.""",." 

W. w ;M .. "".0. 1'1"" """" ... Iion , .. ~tI So .... ;.,. ""_ ........... .. POO'""'" III"'" ..... "",JbI,o gotting ... in, o< ... """ or ,,,,,,,,d. "'. "'WI .. ~ I"" pit ... _ '"'" .. 01'1<1 ... will .. III YoU 

V"" __ n. .. ~"'" uo ... 11"" __ d •• , .1'" >!'U ~ .... Ir' ....... 011 til. i~,",,,,,tio(I ... '_I .... Somo .. _ "'Ill' . 

w.,... II 0<1";,_ ",,,,,,,,,,lor>;O ... _ "y .. , "".." go" _ .. "","'" 0' ""'_0"'" "'(t.," , ... , _ ....... got '" ,"""" ....... "" M.K, Ioc, 5 .. ' ....... 11 P_wo,k A.""" ..... .lot s,.,_ ~, ......... UN .' Per_ 10, ..... """" 

Soc_ IUI(" 0' "" Soc<A1 So ... "y Act .. _fa. """' .. lot ..... ,. c_, """ ... ar.,..' ...... W. w~ .... 1I\iO .. , .. "",,_ to nolo '" ""If''''''''',,....' tnll\le""n, to _It". F""""",,,~ lit , .... "'or_;o ._ ..... _"",, '-.g , .. .,"" .... "" w,"" ......... ' or tnt _".0 " ' ar.'''''''' ""' ......... , ... I,,,,,, .... 1 .............. " """ ........ <10<...,... on , ...... _. "'~1oI> 

mill' ... 111, "' .... IoU.I ","y_ ... W. ,,,010"" lI>o .. , .. _ you _ply '''' ""v "" __ • • '_ ,,, .. , .. "",or""""" .. _. itt Stool .. s.c..-~y _om •. _ ...... ........... ~ kit Iho _ ... "'U""",,,, lot ....... 0'_ s-",; .. "''''''." .. 

W. m.y"'" '"""-1nI ...... ""', , .. ..." ... , _ '" , ..... thor _ , .. oc«>rd....,. .. I'h """~ , ... , .... UHI, ... t.I<h 1nducIo. bot ... "~,II f\mi,0<1 10 1M _~. 

1, 1" ... "' .............. '" ..... ogene. I ...... , 50<001 s-.r" . .. "''''''.''''111 "<I"" '0 M."", ... I>or>o~ .. _or """'0\10; 

2, I. «>t1'IOIV ..... " f_ .. 'ow. _ ,too "'_. or '''...,...Il0<l''''''' 500:'" Soc",,," ,0<.,,10; I. y " '0 .... C;"""'.""'l! /l<CO<l"'_'Y or .... """ 1M 0010_",., v., .. ""o/lU .. ,,): 

. To ...... . " __ ,, ...... , .. . jjgilollo'l, 10 ............ It> 00<1 """" ... ...... "_00 "''''''_ ot "'" Fodor ... S .. , ...... lOc" ".oj, .. d • 

• • '0', ... ,"' .... ,lo,,,," , ..... <1'1 and _ , "",;"1_ ......... to , .. 'u. 'hO 101"'..-"1 ond ...... -.. ... ,.( 50<<01 

s...nlV"'_"', 

-::::: :~ b":!:::. ~=;n .. ~,,:, :::=: ;:=::''f ,=~ t:~=;;.. ":':.:m~~.=.::=:.:' c:::.do"':"'", .. ,_ .. .... " , • • "",I0Il', oIigdroti'.'or ,_,01',,_ or _ .. , .. "" _hi ",_. "'" '0.- ,Op • ...,.." .. ~ ........ II II< 1IoIi_, _II """"' ,_ .. ""'.,," 

1\ """'9." u ... 1 ..... ' ......... . 0.- " .... ,,,,,,, • ..,.,,, .... _ .. S.""", of ~_ ...... "' .... 6O-0D8i. C-' F_ S .. ,,,,,..--.I 

~:~ ;-:m.,:.::, r:::.::;::'===.z,,~~."::r\='':'= :'=:; ;::~~'!'" ':"-~'1:!~ s.run, ... ttl<oo. 

P."",,, ... ~._""n "", 5 .. 1 ...... " • Tlok "',"' ... ...., ...... ,""' ........ ,100 ' ........... " to 01 44 U.s.I;, • n01 . ............. II.,- _,,,,,,2 of ..... e-rw.dllt<M:tjoo Ati. AI Ins. Y"" "" "", __ ,. on' '''' ,_ ..... ,.,... ............... ot .... 01<1 Dill .. .

• , _"110"""" _ 1Ii>dgo' ."", .... ........... w ... ~mo .. '1101 ~ wil ..... ...,..' 4Q ....... , .. ' o'ood iIlo "'~""'''''''' g., .... .... lot". """ . .. w .. , .... _Iiono, U PfO OR IIIIt~Q THE 1;0MPlHEO fORM TO YOlJlllOCAl SOCIAL SEC\J~IIY OFf iCE. Th • • ,1\000 ;010'0""""" U.S, Govwtl..-, _ .... III y .... , ___ '..... or you ..... CAlI 50<101 s.rur~ " ' ·800-17:-'213 lO Y H I00· n5{I7781. Vou m.v ,_ • .....-t • .,., ..... ...".." ..... _ ,., SSA. 84QI Soc .... ,. IIIoiG .. fIOJ,"""' •. MO 

212JS.6-401 . 5 ..... ~....--" ~g 10 ... ' '''''' .. _ .. '" , ... _ • • no, ..... _tod , ...... R(PORTttoG II£SI'O SI6lUTIU 

'1 .. an_ "'. " .. _""'01""....,. ,S51) " b._ "" ItIO ,.1""".,,,,,, ...... IQ ,,", Vo<> ""'" ,<II _ -.,..ty ._. """ _ •• ""_."",,,,_ "'ocuo ...... _011"" AND II ........ , '''''''''''''II SSt 

R_., 0"'" "'0\''''''''' 'h. SSI ." . ... "'" ~ .... '" "'-... 'm_, ""_, <I'Ior>go, " _ 0' rout """'li .... 

:;,":=~ • .r.~ ,~":':: =""..,!,_.v::, =':100; r·':'~;:':'":': !: ":,:,,01::'..;::::!t ~;:r:~,~1'"" '_1>10 ._ ............ 1IIt VOl!, 

y "., ...... , ,011 ... -., ................ 10" 10 d..,.. , ,, .. tho "''''',''" _",. "V"" "" no, •• """ "",,-. w. m .. too ... ... 101"., ....... " _ 125. _so or 1100 ou,.1 """'. <110< .. , 

H'OW TO IIfJ'QRT 

v"" IT", molt. """ "I>"no: • By ,""'-.. ,too ............ __ ........ -... or ..... III ,oO I. .... 1·aOO-71l-111J ITTV 800·J2~07781 '" 

• "'_000100 • lI"I fNI " III .......... . /.,,,,,,, _'" 

Fo.", UA·aooo·lli! (01 ' 20121 
41 

f 


dkrause on DSKHT7XVN1PROD with HEARING78762A.033

CHANGES TO REPORT 

o WIiERE YOU l lvt - Y ............ epon '0 Sodol s.C<t~ ,y II: 

• You "",.~. • V,," .... "" " " UM.,<I SW" I", 30 r."" .... U,1ItI ~ ...... 

You I"" you< '1'<1 ..... ) Ie ..... yoUr hou .. ",,1d lu' . 

C~"'M .' """,II, '" "'''118'. If ", ~ •• n'pIo. """ ... ".. . V"" .'e lID IOIIl/O'l 0 "'GI l ' '''<lenl 0 1 !I,e U •• ' 1Hl 

tIft ... ,~, or .1Ol, ••• lo,i"o.) $,", .. V ..... "10 odmill&<! '0 lt~, • CIl&l\<Ia, ,"on'" or lo'lIla/!. 

or ,~~ .. "" 100,",. , l,,",pl ... or """.'"I/ ...... , •. Ioil. 

INlto", or 0' ''''' co"..,ttol,oIl"'~I V a, 0' 1>0' '".,i'"' ..... o HOW YOU UVE ·V .... "",,, ,.pon 10 SocI.1 Soeu~.y , 

• II Inyo,," moVK h110 '" .... , 01 yau. hor;HI\vI<I 

It ,"" """",n' 01 moor; you ~.y ,,,wo.d """ .... I0I<l 

oXllenteS eh""tel. 

• You. "",,,'.' a'.,,,,, eMnll""' 

6it'hl . "" de.' ... " , any P""P1" wlih .. tlftm YOU ftvn. 

Y ..... , I POU" "( "'."'." ,po",. din. 

··YoO go. ",", ,,Iod. ""PO.I.o<I. dtV".c8d. 1>1 vou. 

",.,,1011'1 ~ . ...... nod . 

··Voy IM>;lIro IIvl"g wilh oom"""" a. h".""nd.nd 

wil o. 

o INCOME·Vou ........ oporl 10 Social SI<Ullty il vou. v"'" _UHlyo". parl"tI." 

• SIMI,,, .oeol"" mo""y ,1>1 ch"",h 0' '''' 01"", IV'" • Slatl....,. ~ 0'"'''' .. QI •. 

0 1 poymontl Itom _, .. 0' ..,me""""". e,," mor. o. Iou tIIO .. "y. I_ HI' all POV",uh •• IId 

Ii ....... ch"'te"' !hl .""""" o f "",nov V"<I ._v.. p.o.<Ie !h'"' '0 SSA whO!l ,equK10<l.i 

lie"," (0 ,eeetve Chilli . up"Ort ,,&ymet1.J'o, ,Ita." • 6.100 .... tll<ltbll fo, bGtwl"~ oll>Or !hon S51. 

,,"vmonl' go up 01 do-w". 

y"" ."It, •• nt 0 1 hO", I""", ..... 0, fOOd. <I, pO\NMn, 01 

h"" .. iK>kI .... ,,,"""') Y"" ,earlYOII"'" u~ or do .. n 

I., 

Some<Ino 5lo,,", hollJlf\U y ...... 

Som""" . ....... ""'I>ng V<I". 

D THING5 OF VALUE THAT VOU OWN · Vou ...... ,opon 10 SocloI Security II , 

• Tho • I "2000 • V"" ~ • • 0' iii ... ony ' NtKI 01 ~ ...... ow' v. 

I it vou... Y"" ~uv II! .'''\IIv,n . "v!hiov 01 vol,,,,. 

You, co""ili<>n imp""'''' or VOLII doc l'" " V' v"" ctton I.'um 1o wor , 

i : 

o If YOU ARE THE PARENT, STEP PA~ENT. OR REPIIESENTATIVf. PAYEE FOR A CHILO UNOER lB · A 'OI>On '" 

Soci. Soc""'V mOl" boo ",0<10 11: 

• It_ . ........... , ........... _ . , .. ... __ '" II .. 

_ ........... ' .. ........ 1.1_ •. 

· _·,,· ........... ""'·_,· ......... -"' .... ·--1·' .. ...... '01. 

• 1-. . ... _ ........ __ .. " ,,,,,,_,' _,_ . -.... . , '''" .-........... ' ..... -.... .,., ....... ,- - o VOU ARE UNMARRIED AND UNOfR AGE 22 · A .. poll '0 5<>cio1 Soc",ltV m .... '" ....... ,,, 

• You .... " 01 , 1"11 ""hool • V"" ge' ",.,,"'11 01 d"'OIc«<l • YO" S"''' or ",op .. o,~lng 

o YOUR IMMIGRATION STAruS CHANGES· 

• V"" til,,", ~p<>rl ~ny "M"lIO" ' 0 Soc'.1 s&<:u,ity. 

o YOU ARE SHECTED AS A REPRESENTATIVE PAY EE · Vou .... , .. , ,opott ' 0 S<><I-I S"cu,lty II: 

• The pori""" 101 whom you 10<:01". SSI oI . h.. • y"" .. al "" ""","' "" oil", 0, "" lOnge, wi.h '0 "" ... 

"".,. ohot,_ OI'd 11><>. 0. IV"" mov ... hold 1101>10 It .. , ,,",,0/'1', 1.IltI .. nl.,Iv.I><1V .... 

II VOU <lo hO. ' "Il"'1 I .. ,,!/!!~ !~.I""Vkl8U .. , the 

SSI ,o<:~n " P'Y'"",,' .""""', . • ~lI ... 1"10 If 

o_IIOi<I.1 o ,F A WARRAN T .IiAS Bf N ISSUED fOR YOUR ~A~~61 ·You muOi ,.",,'1 10 Soc", 5.",,",.,. iI: 

• v"" .... " .... , IS" lOt. c,ln", Of Ott Ollrmp'ed Clime • 'fOWl ... ".,,1 1& I .... ",101"," 01 "",,,,, ,.,., 

Ih'I ". '. Iony (0'. in ;'.(I"d~ io n. Iho, o nol ~.lIno <K , .. ,ole ,,,"I,, f"""'.1 n, SI.,d to .... 

CI""", 8, flllonin. a t:l1mo lha, IS """",hObl .. b~ _II, 

m ""11'1"","""'" ,1>1. 'elm .' CfII ~lng , VUO;.' 

on" SSA·d06O·RM 10 1 20121 
42 

Chairman DAVIS. Mr. O’Carroll, you are recognized for 5 minutes. 

STATEMENT OF PATRICK P. O’CARROLL, JR., 

INSPECTOR GENERAL, SOCIAL SECURITY ADMINISTRATION 

Mr. O’CARROLL. Good afternoon, Chairman Davis, Ranking 

Member Doggett, and Members of the Subcommittee. Thank you 

for the invitation to testify today. 

For many years my office has recommended that SSA consider 

all available tools and methods to ensure the right person receives 

the right payment at the right time. As technology advances, data 

matches and electronic records are emerging as effective tools to 

improve payment accuracy in Federal programs like SSI. 

Financial and other nonmedical factors can affect SSI eligibility, 

such as earnings and income, resources and assets, living arrangements, and presence in the United States. 

SSA’s Access to Financial Institutions Project, or AFI, is a datamatching initiative we recommended years ago that helps the agency prevent commonplace SSI payment errors. AFI allows the agency to receive data directly from financial institutions, rather than 

relying on recipients to report assets that may reduce or eliminate 

the benefits. Self-reporting, or the lack thereof, is a leading cause 

of payment errors. AFI is now in place in all 50 States, and the 

agency anticipates $900 million in lifetime program savings for 

each year it uses AFI. 

My office has also recommended that SSA expand its use of electronic databases to verify real property and assets. Last year we 

estimated that SSA has made improper payments of more than $2 

billion because SSI recipients did not self-report property ownership to SSA. In recent months, SSA used a real property database 

in its stewardship reviews. The agency reported the records database was an effective tool, and that SSA would use the database 

in all SSI reviews in fiscal year 2013. 

SSA is also working to collect transactional-level data from foreign ATMs. This data can identify ineligible recipients because 

they were outside of the United States for more than a month. We 

recommended this approach in a 2008 audit, which estimated $225 

million in overpayments to 40,000 recipients outside of the United 

States. We are working on a review of SSA’s progress in addressing 

this issue. 

We have also made other data-matching recommendations to 

SSA to identify marital status, workers’ compensation, and vehicle 

ownership. We in OIG use data matches in our work as well, but 

the Computer Matching and Privacy Protection Act requires formal 

computer-matching agreements that can take years to complete. 

This prolonged process can delay or derail time-sensitive audit and 

investigative projects. 

In 2010, the Department of Health and Human Services obtained 

a legislative exemption for data matches designed to identify fraud, 

waste, or abuse. We are pursuing a similar exemption, which could 

serve as a vital tool in our organization as we combat fraud in 

SSA’s programs. 

This office also continues to encourage the agency to seek funding to support key improper payment-prevention tools. For examVerDate Mar 15 2010 08:06 Mar 04, 2013 Jkt 078762 PO 00000 Frm 00046 Fmt 6633 Sfmt 6602 I:\WAYS\OUT\78762.XXX 78762

dkrause on DSKHT7XVN1PROD with HEARING
43 

ple, SSA has reported that it saves $7 for every dollar spent on redeterminations, which are periodic reviews of an SSI recipient’s eligibility. 

In conclusion, it is critical that the agency makes certain that all 

SSI payments are correct and timely. SSI recipients depend on 

these payments for basic needs. But it is equally important to protect the integrity of taxpayer dollars through data matches, electronic records, and traditional reviews. I applaud Chairman Davis’ 

proposal to expand data-matching across the Federal Government. 

For now my office will continue to work with your Subcommittee 

and SSA to ensure SSI program integrity and increase taxpayer 

savings. 

Thank you again for the invitation to testify, and I will be happy 

to answer any questions. 

Chairman DAVIS. I appreciate that, Mr. O’Carroll. 

[The prepared statement of Mr. O’Carroll follows:] 


dkrause on DSKHT7XVN1PROD with HEARING
44 


dkrause on DSKHT7XVN1PROD with HEARING78762A.034

u.s. Uouse or Represeolati ... e~ 

Commitltl." (I n WIIY~ and Mrwns 

SlIbc(lmmiltce nn Human Resourccs 

~le enl for Ihc I{ ~conl 

llcarinl: (In Ihe U~(' (lfT('chnology In ImproH'-

Ihe f\dminislrwliou of SSl's Fi ,, ~ncill l EligibililY RC(llIirl."mcnb 

Th~ lI(l norablc I'.urick I'. O·Cllrrnll •. lr. 

In lor Genenl. S(lcia l SccurilY Allmi(lislrlliion 

.Iuly 25, 2012 
45 


dkrause on DSKHT7XVN1PROD with HEARING78762A.035

GIX1d Bftemoon, Chainnan D,w;~, Ranl.:ing Member Doggeu. B!ld ml~nben; ofth~ Subcommillee. It is 8 

picasofl: (lJ arpcar bcfQfC you, ~nd I thank you f..,.- tru, invitation tQ t"Stify today. I h~v( appeMl.'d be!<m: 

ConWl'SS man y timL'S to di.o;cus. issues critical to Ihe Suoi.1 Securily AdtniniSlrnlion (SSA) and the 

sCniiccs th~ Agc~y provides tn American citil.~ns. This yenr. I have h:stifted nn SSA's Di .... 'bility 

Insllrn,,,,. program. Ihe Death M~Sler FiI •. and Social Sc.:urit)' num!!.!r misuse. Toduy. we ore di!l>.:uS5ing 

the Suppl~m~ntij) S~urity Illcnm<- (S5J) proyam and weys w improve the udminislr:uiollofSSJ's nOllm..:lieal eligibility ~uirements. 

Th 55. t·mg ....... 

SSI is a n3tionwide FedernlassisLancc pms",m that guar:mtc'eS a minimum level of income for needy 

aged, blir><l or disabl~d individl~,ls. General tax re,·enue .. nol Social Security ta.~es. fund lite SSI 

program. which ali()w5 individuals 10 meet ba.~ie n~ds Ii),;e food. SheilCT. and d01hing. According to 

SSA. in May 2012, the'. Agency nlOwe $4.5 billion in SSI payments to about 8.1Illillio" recipients: the 

tlwt1:lge I'e<kral P«Ylllcnl ""~s $516. 

J)ccause SSI is a n<'Cds-uJsctl and means-tcste<! program. lII~ny llQn·mroical fJc ~ can a/Teet SSI 

cligibilit)' and pa~mcnl aml)Unlll: ;noo"'c. I\'sollrc<'$.li, in~ 8111l"I:Cm('nlS, cili;rensl)ip, and I"l'<juiromcnlll 

to r.1~ for olher progr.tm b;,,,,,l;t~. n,e SSI pmgrnm requin:.' Ihal S5A periodically re-8s!;I!SS individ""ls' 

eligibility Dnd p!I)m nt amounlS b.,,,,,d on th !Ie non-medical factors. Exe~pl for cmain rn,tilulionulfl.l'(/ 

iodi vidua lr.. ~JI S5! rc<:ipi~ms PI>' ptriodk~lIy scheduled for 3 rcdelenninutioo. EveI)' year. SSA 

ilChedul.-;o for ""detenninatiOIllhe C3Si:S mo~tlikdy tQ have a paymenl elTt)/"", bill e"~n t~S unli~dy 10 

11.::1\"1' payment ~1T<)flI are sched uled for review at leaslorn:e ~v~ry !i" yean<. In addilion. unscheduled 

n.'(/~"tL"1lI1in"tion~ 01\' l"{)mplelcd un an as-nce<led basis when re<:ipie'nts report. or SSA discQVL-r.;, eemin 

chang<-s in circumSlanCC!llltal could affeet 55! eligibility or payment aIllount. 

S5A also uses a limited_issue pro«~s 10 d~~ct situalions thai ha,~ the potential to all,-"'t SSI digibililY 

Or the SSI paymenl amoum. As part of thIs p~s... SSA conducts periodic computer matches b.:1"'~n 

i15 OWn syslems nnd Ihos.: ofolher Federal and Slate ageneic! 10 detennin" if the inL"Omc "nd reso",,,,,~ 

infonnniioll on S5! recipienlS' =()I"ds contliCIS with dala ubtainccl from lite other sy~tcms. 

SSA's process of ensuring SSI payment accuracy 8100 relies in part on SSI recipimr.s. .... poning chan>'.L"S 

in their incom~, resources, and/or living situation. Un fOflunalcly, SSI =ipi~nts do not alWa}5 .... port. 

thC6C changes-includinglltosc chanlll"S ,hal afTect 551 dillibilily or o.."<luce ","rllll"1l1 amuunts. For Ihi ~ 

rea"..,n, tm, !>ell~Y·S sr<'alest p"ym~nt accuracy chaJien!le is SSI ov~rp"ym~ms. S~A reportl"<l $50.3 

billion in tOlaI SSI payment. ror Fiscal Year (FY) 201(t-\he 1110>'1 1"1,....,,,nl reportingyeDr- "ith S3.J 

billion in o"~rpaymcnts. 

We h8"( made nl:my fecOlmncnd~tjons in recent yean; 10 SSA th:" sopJlOl"l too Olliet "rthe In'lX"cIUT 

G~ncral's (DIG) primary focus "" pru!;f"'1m i"lfgril)". For U8mpl<-, we have cnc"u",gcd Ih~ At: .... ,Cy 10 

seek funding to sUJl!>Ol' key improP<'r payment'Pf\'venlion tOOls. such Bs inc",~scs to lite v~ral! numbe, 

nnd fo..'qUCllCY ofredctcrm;naiioos conducted. SSA has rel)()fh"<l that It SIIVCS S7 fnrc\'ery 51 spenlon 

.... tktcmlinalion •. lo"~"(r. tho: Ill'mber ofretletcrmin~tion:i 55A conduclCd dc.::1\'IlSCd by mote lhan 60 

p<'I"C.:fIt from FYs 2003 tu 2008 (25 million to 900,00II). In July 2009, we ""t;mated h~ Agl"1lCycould 

ha,·t!.5avcd In additional $3.3 bil!;on dllring FYs 2008 and 2009 by cood""ting ret!;:lennin:uions 3\ the 
46 


dkrause on DSKHT7XVN1PROD with HEARING78762A.036

sam~ k"cl il did in FY 1003. 5SA complct<1l more than 204 million 55J redelcm,inalion~ in both 

FY~ 2010 arn.l2011, .nd;\ bas stated plans to cornJuct more thall 2.6 million in FY ~012. 

h)l" mallY y~rs. my flilitc tws encouraged SSA to "'" daw mat~hins lind to ",,(en simililr private 

d~laNoses 10 etlSU", pt"UW"dm ime!;,fily lind protect Agcl\t:y funlls. As t'"\Iidem.~ by Ihe coS! savin!l5 

gcncl"Jled by redet~nninations. il is i,tl ponam (or S5A 10 utiliu :,11 tools Ihat can prevent 551 pa~mcnt 

erro,.,. bt.t"re th~y occur or detect th"m quickly ",h~" they 'ICcur. We boli~\'c the increased 11."" of pri\"at~ 

and public database>< eM help 55A boner id~ntify when non-medical faclors e~isl that may aJf~t 5S1 

ellglbility nnd po),ment ~mounts. 

om ~ And !teoourc,"", 

SSA rcduccs SSI p"ymcn\:i by II rc':'pien('s mQt,lhly "'ullntablc incom~ame,J, uneamc<J. in-kind. and 

deemed. 551 ,""cipiems mn ha", $20 per monti, of mos, income recei""d in a montlt. 3S well as the fil"5l 

$6S of caminlls phIS half of earningS! IWCr $65 in II monlh. Any ndd itir",al earning,;. nr olher Fedl,rnl or 

SlIlle benefits toUected by tm- irnlividUIII. reduce his or her 551 payment 

SSI "",ip ~nts' ",aimen"",:e oi"u"'""poned f,nancial ~ccount5 i$ un~ of the nlajorcauses ofpaymclIl 

errors in Ihe SSl progmm.ln 2008. 'w cSlimat~J that ~09 miliion in S51 overpaymenls wenl undetecli.-d 

t:.:causc 69,ono r"",pi~nlS did no! tn lnnn SSA Qfthelr cMnlle~ In income ~Il!!lnr re!'Ourees. We 

re«lmmeuded SSA obtain bcmdidari<-5' oonk aCCOUnt inf"m'a!ion. r~\h~r than rei} on 5S1 =;picnts' 

self-repllninll. 10 identify additional income ,nd resources. and inve~\iJ;:lte possible violal ion ~. 

SSA tUrTl'n!l), re<:ei,'cs data from Ihe hnemal Ktvenue Service (IRS) \0 verify i""ome, and in =em 

ycars. theAg~ocy i01plctn<"nted the Acress 10 Financial inslilllli<llls (AF1) J'rojecl. wnkh allows it 10 

check an IIprliC8.IlI or rccipi cnl'soonk ae~ounlS to verify resources. In June 2011, S5A tumpleled lhe 

AFl mlloll' 10 all 50 SI.1\0:5. Ihe Di~lr c\ ofColutnhia, and dIe Conllno"w~a l\ h oflhe Northern MJriana 

Islands. The Ag~'1ICy h~s ""id AFI has I""",'"n 1000 vt'ry ll",ful in identifYing prcv;ou.,ly undioclo ......! 

""counlS w,d reducing o\"erp.aymcnt~. SSA I""ojcct ~ 3pproxim3\cly 5900 miliion in lifelim,· pro!!",m 

~ving:l for e~h )'ear the Agency lLWS AI'I. 

As with unrcporlcd financial ~ccoun\s. S51 recipienls romelimes slso conceal real propl.'rly and \'ehici~ 

thai afflS:l S51 eligIbility. W" haw enc"um~c,,1 SSA 10 e)(~nd its usc o f el""lronicdatlllxlscs 10 .. ,;rify 

SSI r«ipiems' real prOperlY Md ~IU;U,"" payment ;u,curacy. 

In a lOll FCl'on, malching a sampl eofSSr ,""cipienl records asainst a real properly database. we 

estimated Ihat at:'M 320,000 ll.'<.:ipienlS inaeeurat~ly rcportffi to 5SA tM! they did out own I\:al property 

OIh<:r than lheir primal)' l"Cl;idcllcc. which led 10 ilnproper fl'l~lnen s of mOrt' than 52.2 billl<lll, 

In r ....:cn\ monlhs. S5A conducted 1.000 551 st~wurdship reviews u$in!( B commercially available 

e!e.;:\rrm;' dJtabo.sc as 6 SQU"C l)(undi""lo>ed prope"y. The Agc'flcy ")IIciudcd UIUI the database ,;cried 

a, a viable tool 10 identifY non-resident<: real proP"" y. and 8ntlQUncNlhal ilS om" .. ofQunlily R~, ew 

would use lIIiJi1e Ihis 1001 in all SSI re,'ie\_s in FY 2013. SSA is assessin!! ho'" to int<'gnu" (h~ use of 

Ih~ r"eords ,nlO its regular opcml\;onal processes. 
47 


dkrause on DSKHT7XVN1PROD with HEARING78762A.037

Li ving Ar .... ~m nlJ 

SSI (\.'Cipicnls' li vinll. HIl'II"I','"J11~nIS can Bn"'Ctlh(:ir eligibility and paymenl amounl- for example,l i, inl! 

with unother SSI re-:ipicnl. liviog "'Ih n spou~ ",ho MS enminj;.~()r olher In omc, 5pcnding lime 

outsi,u, ,he Uni,ed St;}\t's for 8 givrn month. $<'rvinga pri~n semenc~, or residing in nn instilln;o" like II. 

nunin.!! home or an immediat~-c3re facility, 

In 2008, my ollice 1'<'iell.<;cd a repflr! on SSI =ipients with AT" I withdra".-al~ Ihal indicu!ed thC'y were 

n"',<i,l ... !h" Un;!~<t S.n.~ ~_ licdf'i"fl!$ whi> """ ""I.<id~!1u> I !"i.N! S.al"" IN mn~ Ih~n ,0 cM _,"",,,tiv,, 

lLty5 are nOl eligible for paym~nts. Weissul'tl subpoena.s to obutin fin~ntial informatioo ofSSI 

=ipienUi and ~n8Iy7.i..-d the " .. "uiting dala: based 0" '53mplc. "'" estimated SSA failL-d to d/.'l""'t about 

Sn5 million in ov"rpaymcnts bccau$eaoout 40,(1()() n.'Cipicnt. did not inform 5SA ofth~ir 3b""nc~ from 

Ihe Unlled St31($, 

We recommendL-dlhal S5A explore oplions that m;ghl help detecl u=ported ",sidener violallons; for 

""ample. obutining eI~nic bnnk Slatements with 1riJJ1!;11ction·jevcl d1ta: or emering imo D d~l:J-sharinl'. 

agreement .. ilh th ~ Dcp"nm~nl of Homeland Security fi"ll" ;lC~CSS \0,) il~ Tl1Iveler Enforcemenl 

Compliance 5YM~m (TEeS). In 2011. Senator Tom Coburn ""1U<'!itW an updat~ on S5A 's progress in 

alidre!;l;ing Ihi ~ issue, Iltld we plan 10 complete IMt rcvi~w this year. In adiJitlon, 5SA has said it; ~ 

wurking on an iniliati ve 10 collect IransaC1ion·ievei dalll from foreign ATMs lu idenlify S51 be neficiaries 

wllo left th~ country for more than ~ month; the ;\ gency i~ seeking vendo", who n.i&ht have ...,I"vam 

cxpcric,,,-,,,. 

Also, ;11 a 2011 follOW-Up repon on 5S1 O\'t:rpaymenlS to reeipi~nts in Title X IX institut;ons (nur:sil1g 

humes, intennWiar.,..,;al'l! faeilil;l'l; , atld rsychiatric inSI;tutiolls), we f(lund thai .ince we is!;uw (he 

original report in 2006, SSA had madc improvements in collecting oW'l"'}"menls made to these 

re<:ipienUi. Iluwe.cr, wc als" fuund that the,!" institutions were still f~ilin g in man)' CIlSI'S to report 

r.:cipienlf ch:mg~ in li~ing arrangemenls to SSA_ as requir;.'{! b)' law. Thi. h;,d cau~ SSA 10 identi£) 

M additional S I91 million in owrp.~yment . 

We recommended Ihal S5A con,idcr implememinl', a wcbsite ,hal would allow Tille XIX instilutions to 

I'I!porI SSI recipI('fIt admissions I'" SSA. The Agency 53111 Ihc$t' instill!llon ~ ~Irendy hu, e imilor Mline 

reponing r<:quirements ",ilh Centers for Medica", & Medicaid Servie<'!i: Ihu~_ 5SA 00.,. 001 w'an, to 

<'re(Ite a ""pelili ve wcbsi ~ ,hal ,h~ in~ti Ulion~ might nol "'I>ularly update. T he Agm.::y said it would 

<'Qn,idcr working '~ith Stales 10 idenlify llu> Tille XIX in"imlioM within llu>ir j urisdiction and I'I!m;nd 

lhem oflh~;r t"l'fl'-'ninl! J'I"S])U11sibilil;"s 1(' rtdu~c paymcnt ~rro _ 

itil hil l 

To he eligible to.- 5SI. IIIl oppliellllt must Ix' j) a Cilizen or a national Mlhe Uniltd States, 2) 0 noneili;&n lawfuJly ndlllill~d for pe""~n,,m rt~idence in the Uniled S'n"'.\.' or 3) 8 IlQn-CiliZen ""MIlaJK'ntly 

rc iding in thl' Uniled Stmes under oneoflhequalijicd non r.:sid~nt t'IlIegoriC!i. In additi(ln, r<:fitb"'es and 

oth~'T non-cilizcn i in a 1'<'fu!l~c-likc immi!!f;ltion &talUS meeting incom~ and rcS01.l)"Ce rcquircml.'TllS muy 

ix' eligible for 5SI. 

Since lilecnaclmenl Oflh" Personal RtJf'(J'I)'ibilily a/ld WQt"k Oppommil)· //<,«>, ... -i1iali(Jfl ,kr t.>/ 1996, 

1lQI'-cili"",,1S arc eligible for SSI for a maxilllun. of seven YC""l_ Afterthc sc\""n-y~ar period. noo_cili~cns 

we no loo,ger elig ible unk'ss tht:y bccume naturalized U.S. cililcns orcan .how they m....,! eligibility 
48 


dkrause on DSKHT7XVN1PROD with HEARING78762A.038

"'rlk'lia for continued ben..'fits. Our 3l1dit on this tOpic . Issued In 1009. found S5"", controls OVer SSt 

p"ymCIU3 tu R!ful!to:~ and other rw.n-cili;ums wen.- g~"el1l ly cfTe<:live; Ihe Age""y mlKl<: I'f"OIl'!r 

p"ymc,,~< 10 digibl~ lIon-ciliUIl5; in 311nO$1 all cases. 

R~'1"ircmcnt tu File fur Other Ben lil s 

II n'cipicnt m~y 1>01 bedigible for S5l ifSSII ddvi$<'s hinll>l" her orpotemi~1 eligibility for uth~r 

b ... "e/ilS-"Joch os Title JJ b.:nefilS. v~ertul'· bcf1(:fil$. worker.;' com~nsation. or uncmploym~nt 

;n,ur:lI1c"........nd h.· ur she d""" ""ll ak~"1I slep-' to ,,!-.tain such I"'Ylnents wilhin]O ,bys 

Another type.ofbcndil that falls into this cotegory i~ a f~ign-b:tsed pensiQrl. We currently have an 

~udit in process that i~ examining Ihc issue ofSSI recipients who are digible for or reccivinga pension 

rrum Russia. Fu ... ·ign cnlitil!S that pa~ income I<> indi, iduals livjng in Ih ... United Stales do nOi usually 

make this infomost;on available 10 the IRS; therd""'. SSII cannot Jelcct thcse pensions as il can with 

domcslic <'lIlitjc~. [n Russia. pensions may be payable 1<1 individuals with as few os !h ~ ~aJ'!; of work hi 

1M country.~' t:1lthough lhe il1dividlla!~ ~i<k in the Unilw Sillies. 

Thruul!n d.'t~ analysis. , .. , idtnlili~-d a populRlion ofmnn: than 25,000 SSI ",clplcms n!nionwidc "h.u 

m'!;hl be cli\tible for RlIs.ian pensiQolls. We plan to "","pIc lhe populalion to identif)· ~ny .... --cipi""ls "ho 

urecollcctittg Russian Il<'nsion' lind 0")' "'~ulting SSA ovef]Xlynlcnts. 

Iluta MaIChi"~ 

As secn in our ",oommcndstions. datu matching h". b.:cu!n~ II critical tout for SSA ,md uthcr Fede",l 

agencies ss they si,,,k ways to impro\'~ payment accuracy in prognuns like SS!. SSA's and the OIG's 

dtpn~ 10 expond Ihc usc ofSSl-redpicnl oonking And l"C!;()lJ",e data have .... d~ed pl1lgr,lll1 

l'uln~l1Ibililies Wid achieved significant I\j;cocy ~\ ings. This successful ;nitinti,'" lC1ldl suppon 10 II 

suggc'ilioll from Chainnon Otll"i~ for all gO\'~mm~nlllgcl1cies 10 develop cummon daw ckmcntsund 

createU cen\.l1l1 point f<ll" agencics to 5h4!"e ;"fonilation. with the g\)9! of..,du<:ing.impropcr payments 

and improving Cllstomer serVice. 

We have ~lso ,","'\:ommcnd~d SSA obtain dL'lIth lnformUlion de<:tronkally. as I,ell as infonnaliol1 on 

bel1cr.ci~rie$· m~ritaI5I.atuS; esplore daL, exchangu with St:ttcS th~t maiotain automated wor\.:ers· 

cOOlpens.3li011 dalab3~~; ~nd l'(lI1sider obtai ning vehicle infonnati011 from States to wrify the ~I't".-s 

ofSSl n:cipicn~ ... AddiliQllally. we ilave sc\"Cral ungointt "tid plKnncd audits on SS! issUC'l. i"c udi~ 

SSII's "'~thod for sek"'ling redelenni'U1tions. pa~n,enls to multi·I"\.'\:ipicm househOlds. and ""'ipiems 

With e.~cess uru;\.:lted inc!>I11e.:. 

While .... e do umlenake d"t~-m~lching dTorts. the.Comp"ler A(a"'hing mill i',"im<'J' I'ro/,,,,,,"on AN OftCIl 

re<!ui"", forma l computer-matching ~I:"'emcms th31 can lake )'C3r!; to Com pie Ie. This prolonged process 

can del~y or derai[ Ilmc-sensi!,vt ~udil and inveslig:ttive P(()je.."'t~. In 2010. the Department ofHcal1h and 

I [uman Servlce~ oml ilsOIG obtnined an exemplion ror <lota mal~hes designed 10 idcl11ify fruud. waSle, 

or abuse. W~ are pur~uing a Jimii", exemption through a lel!islative propo$:ll, 

nc(u ion 

By 2031>, SSA eslimntelllhl1tlhe SSI mipienl POPUI~t;M will surpass to million, ""Ih ann",,1 

e~p<:ndiIUre5 increasing 1.1 $64.6 hillion. [I is crilkallhat the IIgency cnsure IMI aU SSI pa) menl~ urt 

, 
49 

f 


dkrause on DSKHT7XVN1PROD with HEARING78762A.039

comet ~nd (in,ely. becal)Sc tM individuals "hQ qualify for SSt depcnd on tho5e ll'IlymcnlS cv~ry day for 

food. shdt~r. and ciQ(hing. It is ~'<jually imponunt to prule<:llbl' inleg',I)' ofwxpayer dQllars and ensu\'C 

lhat only tho'l<' who are eligible l'or SSl =~ive paym~ms. 

'flle OIG hM done. and continues 10 do, significant audit "'urI: (0 idenlify areas where th" SSt rrognm 

can be vulne~Jbl~ tQ improper ~ymcnlS: and w .... ~ommcnd actions to ... '«lICe lIT elimiMlc lhos~ ('''0J'5. 

My "fljc~ comi",,,'S 10 sire", lh~ imponBnce ofstcw.rdship revie,,"s IiI:" ri'tle!em.inatio"_Jnd ru; I 

han: outlincd. we have TlIsdc many ,ecommendations to the AAeney spcc ilic 10 Ihe many non· medical 

fui:lOrs that can afl'Cct SSt eligibility. with an cmpMsis rnt IJlililin~ (\;jill matches and cl""::lmnic flUblit 

records. 

We .... ill conlinue to provid~ infonnation In lour Subemmnill<...: and In Aileney dccision·mfikers abellli 

this "itical issue. l'hQnk you again fo' Ihe opponunil)' 10 ~(l(ak "jth )'ou today. I am happy 10 an~".·r 

an)' queSlion~. 

; 
50 

Chairman DAVIS. I still remember that meeting in January of 

last year that was quite eye-opening on the complexities the agency 

faced with data-matching. You put a little Irish on the spin of the 

whole thing for us. We appreciate that moving forward, as Ranking 

Member Doggett and I began down that path, with data standardization. Thank you. 

Mr. Soczynski, you are recognized for 5 minutes. 

STATEMENT OF PAUL F. SOCZYNSKI, 

DIRECTOR OF GOVERNMENT SERVICES, ACCUITY SOLUTIONS 

Mr. SOCZYNSKI. Thank you. 

Good afternoon. My name is Paul Soczynski. I am the Senior Director of Government Services for Accuity, Inc. Chairman Davis, 

and Ranking Member Doggett and Members, we are grateful for 

the opportunity to provide our views on technology and how they 

might be used to improve public benefit programs. 

Since 1911, Accuity has been the official registrar of the American Bankers Association U.S. Routing and Transit Codes, a role 

that requires us to assign and maintain ABA routing codes to every 

deposit-taking financial institution in the United States. In our role 

as ABA registrar, Accuity is required to maintain up-to-date information on the 117,000 financial institution locations across the 

United States. As such, we have earned a unique reputation as the 

trusted source of information about and for the banking industry. 

As you have heard, Accuity currently manages a technology solution to facilitate the eligibility process for the SSI program. In September 2003, Accuity was awarded a contract to develop and implement a pilot proof-of-concept program designed to automate the 

then-existing manual financial asset verification eligibility component of the SSI benefit program. We designed the asset verification 

system to include three main components: number one, a secure 

automated gateway between SSA field offices and the U.S. financial banking institutions; number two, a comprehensive and accurate database of registered participating financial institutions; and 

number three, a Web-based and direct-transmission Web service 

technology platform with sophisticated message-routing logic designed to speed the process and mechanism and optimize the detection of undisclosed financial assets. 

Following several years of the pilot, for all SSA field offices in 

New York, New Jersey, and California, a national rollout did occur. 

It commenced in July of 2010, and all 50 States are now operational as of June 2011. Leveraging our longstanding position in 

the banking industry and our unique trusted relationships in the 

financial institutions across the country, Accuity has successfully 

recruited and registered to participate in the automated solution in 

95 percent of the financial institution locations nationally. 

Accuity’s asset verification system has successfully processed millions of automated financial asset-verification requests and responses utilizing our comprehensive database of financial institutions. Instead of mailing a paper request form to a general financial institution address indicated by the SSI applicant, the request 

is now sent and received instantaneously through Accuity’s asset 

verification system. By ensuring the account balance search for 

each financial institution is inclusive of an institution’s entire 


dkrause on DSKHT7XVN1PROD with HEARING
51 

branch network and not just a single location, the canvassing and 

search of financial assets goes beyond local and State borders to include regional and national searches regardless of where the applicant process takes place or where the applicant resides. 

The system automatically routes alternative multiple requests to 

financial institutions based on geographic logic and account detection probability parameters. The search algorithm, refined over 

many years, ensures the additional financial institutions that are 

canvassed for possible undetected financial assets. This added step 

creates stronger program integrity by improving the detection of 

undisclosed application assets instead of relying solely on the bank 

account information provided by the applicant. 

Accuity has successfully coordinated and implemented direct 

transmission automation with the largest financial institutions in 

the country. This direct, end-to-end technology reduces the need for 

human intervention in a high-volume environment, resulting in optimized efficiency, reduced costs, and high-speed response turnaround times, thus accelerating the overall determination process 

for program beneficiaries. 

Accuity has been pleased to partner with SSA in proving the 

value of technology and serving beneficiaries, while preventing 

fraud and abuse. Based on the success of the asset-verification 

technology, Congress passed section 1940 of the Social Security 

Act. This amendment to the Act requires States to implement a 

comparable electronic solution for the aged, blind, and disabled 

Medicaid population. While the legislation included the requirement for all States to have this implemented by 2013, States have 

been slow to implement the solution. We are hopeful after initial 

implementations in various States, that will become a different reality. 

We appreciate the opportunity to inform the Subcommittee about 

how we worked developing and implementing a new technology to 

provide greater efficiency to taxpayer-funded programs. I would be 

pleased to provide additional information regarding Accuity’s asset 

verification system, and I look forward to answering your questions 

today. Thank you. 

Chairman DAVIS. Thank you very much, Mr. Soczynski. 

[The prepared statement of Mr. Soczynski follows:] 


dkrause on DSKHT7XVN1PROD with HEARING
52 


dkrause on DSKHT7XVN1PROD with HEARING78762A.040

Jllly25, 2012 

4709 Go~ ROild 

Skokie, Illinois 60076 

PiluLSoczynski@AccultySolutions.com 

The following Statement is submitted lor the hearing record and references the Hearing on the 

Use of Technology to Improve Pubijc Benef,t Programs dated July 25. 2012. 

Paul f . Soczynsld, on behalf of Accuity Inc, 01 Skokie. IL, is submitting this Slatement for the 

hearing record. Mr. Soczyn~ki Is the Sen",r Director, Government Services al Accuity. 
53 


dkrause on DSKHT7XVN1PROD with HEARING78762A.041

Sin!;6 1911, Accuity has been the Official Registrar of the American Bankers Association U.S, 

Routing and Trallfiit Codes. a role that requires Accu~y to assign American Banking 

Association routing codes to every bank. credit union, and savings and loan and deposit taking 

inslitutioo in the United States. In our role as ABA registrar. Accuity is raquired to maintain up 

to date informatoon on the 117.000+ financial institution locations across the United Stales. In a 

commercial capacity, Accuity provides the most comprehensive databases and software and 

professional services to assist financial Institutions, corporations and go ... ernment agencies in 

efficient and cost effecti ... e processing of financial tranS<lction wh,le helping institutions comply 

WIth Ihe ... arious know your customer. anti-money laundering and anti-terrorist financing 

regulations w~hi n tM U.S. banking industry. As SUCh, Accuity has earned a unique reputation 

as the trusted source for information about, and for, Ihe banking industry, In addition 10 

proViding data solutions to Ihe Federal Reserve. the FDIC. the U_S. Treasury and the Small 

Business Administration. Accurty currently manages a technology solution to aid the Social 

Security Administration's Supplemental Security Income (SSI) benefit progralTl 

Accuity stroflQly supports the use of technology to imPfo ... e public benefit programs and 

de ... elop greater program integrity. We clearly understand the challenges associated with 

determining eligibility based on the ... alue of applicants' financial assets held al financial 

institutions. Our experience with SSA has led to projectJons 01 sa..-ing $900 million annually 

with a systems generated sa ... ings 01 $20 dollars for every $1 dollar of expense.' 

In September 2003, ACClJfty designed, developed and implemented a pilot proglam 10 

automate lhe e~isting asset verifIcation eligibility component of the Social Security 

Administration's (SSA), SSI bene"ts application and re-determination approval process. 

Prior to the Accuity solution, the SSA's asset verification process deployed paper-based forms 

filled In with Information prOVided by the SS) applicant The SSA would mail an asset 

verillcatlof1 request form (SSA Form e4641) to the finanCial institution indicated by the 

applicant, Under thiS process. response time to the e4641 raquest form averaged between 30-

60 days while ttle financial institution response rate varied from 10% to a rate less thaI) 50 

percent. When the financial insUtution response time e~ceeded 90 days, wnidl was a frequent 

occurrence, it was SSA policy to approve payments of SSI benefits to the applicant without the 

requisite "nancial asset verifICation (with a re-determination to be performed alter one year). 

In automating the SSt Asset Veri"cation Process, the stated goals of the SSA were. 

1. To increase the efficiency of the account verificaliOl1 request and response process 

2. To maximize financial institution participation and response rates 

3. To minimize the paperwork and paper flow through automation 

4. To Improve the appHcant experience 

5. To provide analytic tools to measure efficiency, effectiveness, cost, lind oo:rt sllvings at 

the "nancial asset verification process 

6. To accurately verify "'lane,alassets and improve the ability to detect undisclosed assets 

, 
54 


dkrause on DSKHT7XVN1PROD with HEARING78762A.042

The Accuity Asset Verification System includes three main I;omponents! 

1. A secure automated gateway between SSA fletd offices and the U,S. financiat institution 

community for electronic processing Qf asset verification requests and responses 

between the SSA and the financial irlst~ution community 

2. A comprehensive database of registered financial institutions panicipating in the asset 

verificatian prQgram 

3. A web· based and direct transmission web-services system with sophisticated message 

routing logic designed tQ speed the response mechanism and optimize the detection 01 

undisclosed financiaJ ilsseiS 

Accuity designed. developed and Implemented in Februilry 2004, as iI pilot proof of concept in 

the states of New York and New Jersey, an ilUtomated, secure, web-bilsed application 10 

facil~ate the e4641 asset verification request and response process. The system supported an 

automated paperless transmission of all asset verification requests from an SSA fteld office to 

the respective financial institution and the correspol'ldll'lg response from the financfal Institution 

back to the SSA field office. The financial in5t~ution received a request via a user fr end~ al)d 

secure online interface that notified the financial institution immediately when a request had 

been submitted from the SSA. The information provided is an electronic emulation to the 

original paper form used by the SSA. After retrieving the account information related to the SSI 

ilpplicant, the financiallnSlitul>on electronically submitted all related ilccount informiltion which 

was then instantaneously delivered to the SSA through Accuity's secure gateway. 

System security for the Asset Verification Solution was designed and implemented to comply 

with SSA security requirements as defined by the U""ed States Commerce Depanment's 

National Institute of Standards and Technology (NIST). Leading up to the national rollout of the 

solution which commenced In July 2010, two independenl system security audits were 

conducted by leading third-party aud~ firms ul'lder the supervision of the SSA. Addilional~, 

Ihird party penetration tests and mu~ple financial institution audits were suocessfuUV 

completed. All such audits received positive opinions. 

Accuity's Asset Verification System has processed millioos of asset verification requests 10 and 

from the U,S. financial institution's community and the SSA. The system includes robust 

ana~lics and melrics reponing capabilities that allows SSA 10 analyze volumes, hends, costs, 

and statistics on both a macro and micro level, 

Following, a successful pilot 10 all SSA fiek:! offices in New Yorl<., New Jersey and California, a 

national rollout of the system commenced in July 2010 and was compleledin June 2011 , 

Leveraging our long-standing pos~ion as the Official Registrar of ABA U.S. Routing and TranSit 

Numbers, and our unique INsted relationships w~h all U,S. financial institutions, AcclJity has. 

successfully recruited and registered 95% of all finandallnstitutions to participate in the 

program nationally. 

Accuity worked closely With the larger financlal lnstltutions to c.onsolldate multiple-Ilrandl 

processing of verification requests to iI single centralized processing site, thus further 

streamlining the end-to-end process. Each 84641 request for asset verification is electronicaUy 

, 
55 


dkrause on DSKHT7XVN1PROD with HEARING78762A.043

sent to the correct OiIss;gned processing location specific for eOilch finOilncial institution, Instead 

of mailing a paper request form to Oil generOilI finantial insmvtion address indicated by the SSI 

applicant, the request is now sent and receiVed instantaneously through Accuity's Asset 

Verification System, reOilching the correct processing location at the correct finOilncial institution 

location. In all cases, Accuity's comprehensive finanCial institutions database and message 

routing logIc drives the routing of all asset velification requests to the appropriate financial 

institution location. The account balance sealell for an institution 'is industYe of all owned 

branch locations across the country, thus ensuring asset verificatiOn canvassing goes beyond 

local and state borders to include regional and nOiltionOilI searches regOilrdless of whare 

application process takes place and where the applicant resides. 

In OiIddilion to Oil stOilndard request being sent to the financiOilI institution accounts that are 

designated by the SSI applicant, Accuity desiglled and imple("f1ented geographic-cenlric logic 

IhOilI allows the SSA to drive altemate request routing 10 Institutions nol disclosed by the 

applicOilnl. The system searches Accuity's co("f1prehensive database and routes a~emate 

multiple requests 10 financial instiMions based on geographic logic and distance parameters 

from the designated applicant and jnst~utlon . This process ensures that addiUonal financial 

institutions are canvassed for possible undetected financial assets. This added step creates 

stronger program integrity by optimizing the detection of undisclosed applicant assets inslead 

of relying solely on the bank account information provided by the applicant. 

Since implementation of the national program commenced in July 2010 (and completed in 

June 201 1), Accuity and SSA worked collaboralivelv to expOilnd the OiIssel verification program 

to all 50 slales and every field office in Ihe United States, Our shared success indudes the 

following stOiltisUcs; 

1. Overall finanCial institution re!!ponse rale of 96% versus previouslV experienced 10% to 

50% response rate 

2. Average financial institution response time of 7 days versus 30-60 days, With more than 

25% of responses received wfthin 24 hours 

3, Participation of 95% of financial i"sltutions In the country enabling timely and accurate' 

provision of financial informOiltion 10 assist SSA slOilff to mOilke eliglbllity determinOiltJo'l 

4. Complete automation of the end-ta-end process signific<mlly reducing time and effort 

required fmm SSA personnel to process verification requests and responses 

5_ A 100% reductioo in paper flow to and from the SSA 

6_ An average of one of six- asset veriflcatlon requests disclos'ng an undetected accounL 

thus f Jelding potellilal annual sailings through reduction of improper benefit payments 

The detection of imp(oper benefit payments Is projected \0 yield improper pavment 

savings of $900 million dollars annually wfth a systems generated saYIngs of 520 dollars 

for every $1 dollar of expense' 

Accuity has coordinated and implemented direct transmission automation with the largest 

finaf'lCial instftutions in the country. This direct end-Io-end technology reduces the need for 

human intervention resulting in optimized efficiency, reduced COSIS and improVed timeliness of 

• 
56 

f 


dkrause on DSKHT7XVN1PROD with HEARING78762A.044

determinations, We continue to drive this response time lower with each suc;c:essive month of 

national operations. 

SSA and Accuity have c;ontinued to make successful progress on Ihe integration of Accuily's 

asset verifi<:ation application into SSA's eligibility system. This c;ooperation has led to 

increased efficiencies for SSA customer representatives and program beneficiaries. ACC\Jity 

has been pleased to panner with SSA on this on-.go,OQ integration, proving the value of 

technology in serving beneficiaries while preventing fraUd and abuse. 

Based on the suc;c:ess of the asset verification solution, Congress passed Section 1940 olthe 

Social Security Act. This amendment requires states to implement a comparable electronic 

solution for the aged, blind and disabled Medicaid population. While the legislation Included a 

requirement for ali states to have Implemented a program by 2013, the states have been slo\ll 

to Implement such automated solutions. Accujty is hopefuj that after a successful 

implementation of the Asset VeriflCa\ion System In Florida laler this year, other slates will 

move forward to reap the benefits realllBd by SSA both in increased speed of approval for 

qualified appticants and In Improved program Integrity. This proven techno/Qgy can save the 

states and federal treasuries hundreds of millions of dollars in improperly paKi benefits each 

year. 

Accuity's Asset Verification System can be implemented to assist other pUblic benefit programs 

by providinglhe secure technology to connect the government sector to the financial institution 

c;ommunity. The Accuity system <:an allow federal and state agencies to simply and effectivel\' 

provide program oversight while improvtng the efficiencies lor applicant and lor recipient 

etigibility determination, 

We appreciate tIlis opponunlty to inform the Subcommittee about our work developlr1{l and 

implementing new technologies to provide greater efficiency to taxpayer funded programs. I 

would be pleased to provide any additional information regarding the Accuity Asset Verification 

System upon your request and I look forward 10 answering any questions you may nave for me 

today 

Paul F Soczynskl 

Accujty. lnc_ 

Senior Director, Go~ernmen! Servlces 

, ReI" e"". u.o. written 1.'Iim<>"V to un~~ Slot •• ~<""" of .p<""M~ I\lM; Co'"""n •• D<1 A?propri.>tl<>/l ~ 

Sobcommi" ... on La""" H •• ltllond H"ma" "' i<6. £duut"",ana R., .. ~ "1~J\6H: 0", ." "'.!C~ 11. 2011' -w __ ,_.~...., ... ......". .. _ .. __ *'«1 ""_ .. __ ... '''' •. '''''' ..... _._, ___ _ __ ........... 1<0< ....... ., ___ ......... __ •____ ... _ ..... __ .._. • 

... ,_.' .. ~_....."f*.*_., ... __ ............ _ .. , ... ,,."""'l'_ l?IIo_,,_4<U .... _ ............. /NoJ. __ ."',. .. ....... _ .. ..-,-...,. ......... fIo<>n<iOI..-" ..... , __ "" .. .. " .. .., ...... _ .. ,_ 

.. _O/ .. w_ .. w._ .. _A" .... ..-...... .., ....... _., ... _ .• yl'''''_''' ___ s- _ .. _ . __ ,...'-'O,...._ ... , ... "", __ ""'." _ _ . JH .. _ .. . _ .... 

.......... _, .. _,.. 

-.-......... 

; 
57 

Chairman DAVIS. Ms. Ford, you are recognized for 5 minutes. 

STATEMENT OF MARTY FORD, DIRECTOR, 

PUBLIC POLICY OFFICE, THE ARC OF THE UNITED STATES 

Ms. FORD. Chairman Davis, Ranking Member Doggett, and 

Members of the Subcommittee, thank you for the opportunity to 

testify on the use of technology to improve the administration of 

the SSI financial eligibility requirements. 

As you know, SSI benefits, along with related Medicaid benefits, 

are the means of survival for over 8 million people with severe disabilities. SSI benefits help people meet their basic needs for food 

and housing, secure medical care, and pay for medications not covered by Medicaid. SSI also plays a critical role in helping people 

with severe disabilities live in the community rather than in institutions. We applaud SSA’s continued work in improving its technology infrastructure to improve services to claimants and beneficiaries even during these challenging economic times. 

SSA has recognized that the SSI program rules are challenging 

even for administrators of the program. The program is many 

times more difficult for SSI beneficiaries to understand and follow. 

Beneficiaries are under tremendous financial stress when they 

apply for SSI and while they are using benefits. SSI pays only 

about 75 percent of the Federal poverty level for an individual. 

Beneficiaries often experience food insecurity, possible homelessness, and personal and family crisis due to economic hardship. For 

some, the disability itself adds its own pressures and makes navigating the complexity of the SSI program extremely difficult. 

The CCD Social Security Task Force generally supports SSA’s efforts to use technology to improve the program so long as the improvements do not infringe on claimants’ rights. We have always 

supported SSA’s work in conducting continuing disability reviews 

and redeterminations to ensure continued integrity of the SSI and 

Social Security disability programs. 

We recognize that technology can improve the Administration’s 

efforts in these areas; however, many SSI applicants and beneficiaries lack electronic access to SSA or may not be able to understand or navigate electronic communications. For example, a recent 

study by the Department of Commerce found that in 46 percent of 

households headed by a person with a disability, there was no computer at home, compared to 20 percent of homes where the head 

of household had no disability. Sadly, our fast-growing electronic 

world is creating new barriers for people unable to cognitively or 

financially keep pace. 

The complexity of the SSI program and the requirements for reporting and maintaining compliance with the rules, combined with 

the push for increased use of technology, will place increased pressures on those SSI beneficiaries who are unable to navigate in an 

electronic world. For these reasons we believe that SSA must exercise caution to ensure that beneficiaries are protected. This will require an increased commitment on the part of the Administration 

and the Congress to recognize the increasing difficulties for these 

beneficiaries and find solutions for them. 

Improvements to the process will save time for both beneficiaries 

and SSA, improve accuracy and timeliness, and hopefully assist 


dkrause on DSKHT7XVN1PROD with HEARING
58 

beneficiaries who are exploring opportunities to work. We have 

some very specific recommendations. 

Most importantly, SSA requires adequate administrative resources to effectively administer the program, including its financial eligibility requirements. We urge Congress to provide SSA with 

adequate resources at the level requested by the President. 

Additionally, SSA needs to develop a better earnings reporting 

and recording system, including providing an option for online 

wage reporting, for those recipients who can use it, that allows the 

agency to promptly adjust benefit payments to help reduce overpayments and remove barriers for people who want to work. 

SSA should also consider using its continuing disability review 

enforcement model to help prevent overpayments before they happen. 

SSA also needs to enhance the use and operation of its toll-free 

800 number. 

We support continuation of the WIPA and PABSS programs that 

have already been commented on. That is very important for those 

people who want to work. 

Congress should raise the SSI asset limit and income disregards 

and index them annually for inflation. While the SSI program has 

numerous work incentives built in to encourage people to work, the 

extremely low disregards mean that many SSI beneficiaries’ earnings trigger an overpayment for even relatively modest amounts of 

work. Nearly half of beneficiaries who work earn less than $200 

per month. Increasing the disregards would help beneficiaries and 

at the same time reduce SSA’s administrative workload. 

I will end here and am open to any questions that you have. 

Thank you. 

Chairman DAVIS. Thank you very much, Ms. Ford. 

[The prepared statement of Ms. Ford follows:] 


dkrause on DSKHT7XVN1PROD with HEARING
59 


dkrause on DSKHT7XVN1PROD with HEARING78762A.045

CONSORTIUM FOR C ITIZEN S 

W ITH OISABIUTIES 

Hearing berore the 

House Ways and Means Committee 

SubcoOlmiltee QIl Human Rcsonrcc$ 

The Use or Technology to ImprO\'e the Administnstion or 

SSl's Financial Eligibility Requirements 

July 25, 2012 

Testimuny uf Marty Ford 

Sudal Scc uril~' Tusk F"rcc 

Consortium for Citizens wIth Disllbililiu 

C<M)I'<C 

M""y""'" 0; .. <10<. J>ubh< I .... it)' onie. r .. 1\", ..t'1 .. U",,«I SmI ... 

PI,,,,,.:: 1'(02) 78J·!l.:9 f." \2(12) .J7JI 

[ ... iI: rc>rd ;;- ,-'.""lI 

ON BEHALF OF: 

A$social;U" (lfUniwr.<;\,. Coolers on j)iSlibililiL"; 

O:).l'don Cemer fQr "'kll\al l kalth I,.aw 

Communll)' gal ScrviC<$uf I'hil~ddphia 

Ens l~' s..... I, 

Health and D;'ilI~ilily Ad"oc~k;: 

N.Lional Allia"c~ on M('fII:illlim:,;" 

Nnl;',MI As."IlCinlion "f('oun~il, on 1).:"dilpmcnloIDlsabililics 

~li(tl\al AlI!lOCialio" QfDil'ahilil)' Rcpn.,;.,m3li,'C:S 

Notional Organization of Social Secu,;\) Cbimanls' RcpfeSCn'3ti\ cs 

1nc Ar.:oFthc UnitiXl SUII"" 

Nat;o"al fJlsu bilit) Righl~ Nelw"'~ 

UniK'd CL-n:bml l'aby nil~d Spin.aJ Nll)'UCimi,,,, 
60 


dkrause on DSKHT7XVN1PROD with HEARING78762A.046

TESTIMONY OF MARTY FOR I) O N UUIA LF OF T H E SOCIA L SECURITY TASK 

FORCE, CONSORTIUM FOR CITIZENS Wll'lIl)lSAlJ tLlTI ES 

Chairman Davis. Ranking Memocr lJojlSCI!. and Members of the SuocomminCt:. hnn~ you for the 

0pp<Jnun,ty to pr<:widc lesl imon} ror thi~ hearing on Ihe usc Mlechnolngy to Impmvc th~ 

admil1istrdli(1n orillc Supplemental SL-curity Incoln~ (SSI) nn~m'ial digibitit~ rt.'quirt.'mcnls. 

I ~m tile DircclOTUflhc I'ohlie I'uliey Olliee orThc Art.' of tile Uniled SImes. I ,nn al~o a mcmocr of 

Ihc Consonium tor Cili:1.cns wilh Disabilit ~s (CCD) SQCial Sl-curity Tusk Forc~. ceo i~ u working 

coalition ofnali.:mol consumer. adl'ococy, pml·idcr. and pmti:ssionnl oT$3n ~nt ons ",)rking toscll1cr 

with and on behalfofthc 54 million children Jnd 3duilS with disubilitie5 and their ramilies living in 

Ihc l)nit~d Slales. f he CCD Sucial S«,urily Task For.:e ilCu~" on dis.abilit)' policy issues in the 

Tille II dis-1bllit) pmgnlills and the Tltlc XVI Supplemental Seeurily Income (SSt) pmgram. 

The focu~ oIthis hearing is extremely impo"antto pet,pic with disubilili,.". SSt cash ocndils. alung 

"ith the related Ma!ka;d bencl1t~. ~r;: the means ofsorvival for Mer 8 million lndi"idU:lls wilh 

~e, cre disahililies. SSI bI:ne f,ts hclp people with si~n;t;eant dis:lhilitics l11eel th~ir basic n,· .. '<Is for 

housing. fll\l<I. and elnthing. and ~cure .. ssential 'iervic~'S und medical eare. SSI benefits alsu play u 

c.:ntral rolc in hclpiog people with significant disabilitieslh'e in the community. rath.::r than in 

restrictiv ... costly institutions. 

PTOper nJmio;stration nf SSI benefits ~ crili;::al and has long been ofi"tert:<t to the CCI) Soc!QI 

Security Task forec. Other "';\l'esses on this panel ~n: abk to tC3tily aboutlhc more technical 

uspt:cts oflheS<!Cial S~'I.·urily AdminiSlrdtion's K-chnologica l iu'limi,·cs rcialed Iu th~ SSI prugram's 

lin~nciul eligibitity requir(mcms. My t~'Stimo y will i)(l1~ 011 the pcrspcc!i"e orSSI bendiciarics 

and On th" rcct>mmcndati,ms "fth" ceo 5,1<:;31 Security T~sk Force rUf wuys 10 enhanc~ SSA's uS!: 

of!~chn(\logy 10 impr(lvc the cxpcricn~ and OUlt'OnK'S uf SSt hcndicimil'S, 

I. "rOI)er Mnd timelU l!I!liu tion or lht SSI fi ~ia l ti ihitit y niter; .. ~ illll!Ortllll1. Tht 

SSt program is g nry eomptn program IO lIdm;niNter. 

As Sneial Sccurhy Administration (SSA, Deputy Commissioner Carolyn Colvin hru; noted in past 

lcslimon),. th~ SSI pmgrnm is very eompk.~ und benefits epn chlm£~ ench momh du~ 10 inl'Qm~ und 

ri.'$Ource flucluations Bnd changes in living u=n!l~mcnt~_' ~'" W'l.\ compl~..: progrnm rulc.s and 

delays ;n receiving incOlnc· dala. rile agency has stNggled oyer Ihe )C:II'$ to impnl\'e ilS aecurac)' 

rnt~ fr,r SSI paym~l1ls - ooth for o\,\'fpuymel1ls a'ld for undellla) ml'l1ts. P.arlitr this ~e~'r. [)~puty 

Comm issioncrC..,lvin noted that " In the SSI pro!:r m> II),) pen;cnt llrall pnym~nt:; "~I'C frec of an 

OI l'fP~ym~m. and 97.6 p"rcem or all paymeo!S wen' fr~~ of an undelll8>ment. a significant 

imprnv~mel1l rrom I'Y 100g.~l She als,) noted Ilmt giwn the eomplc.~ily Mthc ~tolUlCS gOI<cming the 

dioal)ility pn'g.r~01S und thc volume of wllrk, some QWlll3rmcnt:; arc unu,·oidublc. The complexil) of 

Ihe 1'I:l!Jrn'lo-work provisions is e:.:uccrbated "hen ~ beneficial)' rcctin." both ssm 3ml SS]. b<.~ause 

lhe ben~fieiar) i$ ~ubjcctlo two difTeN: nl ~elS ofndes. About 30 percent of ]'itk XV! ~nefic uriC'!i 

ug~..t 18-6.4 at,,', Tt.... ci, ~ Tjlt~ II ocnctil~? 

SLa'om~t orCaroll" w. Co!~in.l)(,put) CllO"n'»;"",r. So.:ipl s..'<:Urily i\tlm;n;smd;"'n, I,(,fo ... t"" Ho .. ,. 

Cnmmi"c'C 00 Way$ fIIl Mo.n", Sulx:OIl1min"" "" Soti,! Sc.\lfil)' and Sub<;o/mnil1e.: "n o. c~gh'. j,Uk' 14. 2011 . 

, St.lOmcn, ofCarol)n W. Cel.in. Ikpo,'Y Co",m;Mloner. Sooial Sc<:"'i(~' AIi,n;";",,"iQn. bef" ... "'" House 

Com't,i,,,.., "" WO)" and Mo""s. S .. b<","miuee "" Soti.! s.",,,';L). ja,,,,,,,y -24. =O!2. 

l Toblo Ft~Pc"'.nt"b'" ,,(SSt hdc"'lly_AdlO;ni'l~rcd R",,;pi~nu. in Cu""n'_P'l.)·mrnLS)31'-"l ""h 

ranicipalion in SclcClod rro~"'ms Ila..,d on 5SA Ad'",n;"mtiH Re.. .. c.xb. 00::«ml,(,, 10It . In Sociat ~cu,'t) 

.Adnlinos)ra);"" (201.). 201! Ann"oJ RCl"'rI "fthe SSI PNgram, 

, 
61 


dkrause on DSKHT7XVN1PROD with HEARING78762A.047

While SSA n:~o iz~ s Ihllllh<' SSI prul!Jurn rul~s lire ehallen~in!:\ for atlminislmlors- uf lhe prugrum. 

we believe Ihatthe prvgrum i~ much morc tlimeull ro. SS I bcncfici3riC$ 10 Undel'$lantl and IQllo" 

~ccu :ncly. 55! uPlllicMt5 and bellcfidari~~ art under tremcntlnus financial lre~ ~ Wh~"llt <!)' apply 

for SSI antl ,\·hile they ure using SSI benefits (Ihc ma~inHun f~d~r.ll S51 b~ncJ1t ofS698 p"r month 

plIys only uooul 75 percenl oflhe FcdcrJI poverty level for un intlividuall. ·nley orten cxperkncc 

olher sIr.:sst"ul situations. including f{~ insccurily. pM;;ibk mcltss n~""Ss. nod pcrson~l and fgmlly 

"i~is due In ecollomic hardship. For some. Ihe ,·cry tlisnhilil)' for which Ihey halc lumed 10 Ihe SSI 

program adds its own pre.sures 10 Ih" silUali'nl ~nd. in sumc ca>;<:s. mal:~"S navigating Ihe c<lLnplcxily 

of the SSI progrum e~tremcl) dillicult. 

2. Tr hn v a rule in hcll!l.!!r.1u IIccumplish I!!:!!Pcr and lime'" IIp'plicaliun uf 

lhr 551 financial tllg~ 

CommiSliioner Michael Aslnlc and DcpulY Commi$sioncr Colvin havc Il'Slifll.-d abool.5SA's Ac,·css 

10 f inancial In titut io", (AI'I) prt,jctt und the S5) fdcphonc Wagt Reponing (S5ITWR) ~r~lcm . 

Commission"r Astruc has nmtle ~ Slrong "om",i!m"nl to imprOI"" and e~pand the tcchnology used in 

Ille di s~ bili · delerminution procl.'Ss. SSA has implemenled a number 01" s\gnifi~am tl."l:hnolugical 

improwmcllts that how helped cluimnllls and their reprdtm~ti~cs and hu\·c m~dt the proces~ mH'" 

cffiti"m fnr SSA emplOyees. 

TheCCD Social Security o.~1: Forct general!) suppons SSA 's cnons 10 imrml\"" the disability 

claims process. SO long as thq do nOl infring"'111 ciain13nls· rit hlS. We have also a lll"3Ys suppmtctl 

SSA '$ work in wndueling continuing disability twie" s ,md Il.-dclcnninatioos tu ensure eonlim,cd 

imeyil)" ',flhe SSI und Social S~curit)· disahility pnlgfam>. vic recogniu thaI technology CUll 

improve tbe Admini$lr:llitln·s effon s in Ihese Orx.:BS. 

110""I·cr, il i$ imrorl~nl 1(1 remcmb<:r that OlUny S51 app)ican\:j and b-cncficiuric~ luck cicd ronic 

access \Q SSA Qr may not he able to underslamJ or navigale elcclronic commontcalions. for 

cs~mp1c. a recetli study hy the Depanmcol ofCommelX:e found thOl46 percent ofh, u>ch!lld~ headed 

by ape"'''''' wilh ~ diSli bilil)' did nOI hal'(> a COmpl.lkral homc, compared 10 20 pt:rccnl ofhomeS 

"hne the head ofhlluschuld had no di$ability.· Sadly, our burgeoning electronic wllrld is creatin.!! 

Ill'\\' barricl"!i for p • .'nplc unabk til cOi\llili,dy und/or flOnntially keep pace. 

Th<· eomplexily oflbe SSl program and the rel.luircmc11lS plae<-d on bt:ncficiarics lor reponing and 

maintuioing. ~omplian'·e "ilh SSI rull . combined with a push for ioercaS<.-d usc oftcchnology. will 

placc inncascd I'rc :lS ur~ I.ln tho~ 5S! b<.~lcliciark~ who on: unable h) nm·;g:lIC in an clc.:lronic 

"orld. This will ll.'I.Iuirc un incrcasl.'O.l i;ommill11Cnt nn the pan {.Iflhe Admioistrution and thc 

(.:l)llgres. 10 recognil.c the inc reusing difficullil'S for Ihese bcnelieia i~'S and \0 wmk 10 lind solulions 

fnnbcm. 

For Ihe~ reusons, we helieVl: Ihul SSA must cscrti~e C'~ utjon to ell>urc thm beneficiaries are 

I)rokcl(>d, p~nieula ly "he,c th~y ~re unal}1c t" nilVigalc Ih c.S~·S I"m ilntl need a~ $t a.nec in cOrri:cling 

crrors. While Ihere may he ways to impro'·c Ibe process from Ihe pcrspeclive or lhe AdminiSlralion. 

Ihe ~ltom line evaluation mUSt he bo\\' the pl"(l(:t""S5 an·cn . the "cT)· claimants and bendiciariC$ for 

Whom the ~)'s m cxisls. We belicv~ that Ibe crilical mci'lSurt' for S$(:s~ in ~ iniliMiv~""S fOr achieving 

'u.s. tk""nmef\l "rcornm .... " (21)11). bploring Ihe Oig;181 N.I;On: C""'put., ~nd Inte rn., Us< allIl)m ~. 

A«usedJul) 1~.2\111.1 

hnp:lI ... ",w.nlil.d(>C.So j·lfI""'nliafpubli<:llim,veKnlorl!l1:, the dlgillli nUlk", «Impule. "lid lowml U"" ul Mnle 

LLQQ10IJ.OOf. 

, 
62 


dkrause on DSKHT7XVN1PROD with HEARING78762A.048

:Idoninislrmi,'e cOiciencies onUSI be Ihe polenliul imp~cI on clQionam~ and bencikiarics. Pl'llpo!HIls fill' 

incrdSing adm lni~tmli, ': el1icien~ics musl bend LU the realilies of ben dici aries' liyes and a~~cpl thaI 

pI:oplc face innumcral>lc obs13e1cs when Ihl; apply for and reb upon di~abilily benefits. SSA muSI 

euminue. und improve. its ~slublished role ,n ensuring Ihol bendici6rics nrc: fu U)' prolecled in Ihe 

proce~ and on uSI dcsi~Il ils rules amI priJ<:cduT\!S lu reflecl this adminislmlil'e r~sponsibilil)'. 

3. RCClllUmCIldlllillns. 

SSA and Congn...,~ call work I"gelher IU mllke it easier fur SSI beneficiaries 10 n~I ;guje Ihe ~y~lcm , 

Impr.)\"emenls I(Ilh~ process will reduce Ih" lime lind elTort Ihal bolh bcneficiurlcs and SSA mUSI 

d"I'olc 10 Ihe Iinan~iHI d;g.ibilil~ process. i1llpruv~ ~ccum~y nnd I;mely aCCeSS 10 b~l1ctitg. and in 

particular will assisl 5SJ beneficiaries who arc e.~plo ing opportunilk-s!U work. On belmlf uf1hc 

eCD S,>eial SecurilY T~sk Force. I ~m plea~d 10 olTer Ihe fl,llo\\;n8 recomml~ldatiull~. 

a. Pr(lvide ~deQlIalc atJminislralin S(l llrc l'S for SSA. 

ForemOJ'1. SSA n:quirc..~ atJcqu31L' rulminislrali\"c n:SflUrcCS 10 crr"clivcly 3dmilliSlcr Ih~ SSI P"'1:13m 

including the program's fimmdal eligibililY n:quircmcnls. 

Fur mlUl)' } earS'. SSA did nul receive sd~qualc f,,"ds f(lr iL~ m~ndal~d scr"i~"s. Bct\lccn I'Y 2(1(10 

3nd I' Y 2007. Ihe I'(.~uhing adminiSITlLI;ve funding shortfall \\"3S more Ihan $4 billion. We Ih:mk Ihfs 

Commincc fnr ils cfTtms 1<) pn)vide SSA \\"ilh adeljuale funding for ils ad",inisl :ui\ ~ budge\. 

[k!wccn 2[)1I8 and 201(), Con~rcss provide;.l SSA \\'ilh Ih~ ncceS5Dry TI.·~Ol,rees 10 Slart meeting ils 

serviel' delivery lI~-.:ds. Wi,h Ihis funding, SSA was able 10 hire Ihous;Lnds of n~..:dl'(/ new employees, 

Thert cun be nu duuhl thut this udd iciunal stu/T gn:utly cnhuntcd SSA pnlgr:lm operali<ms. 

Unfortunalely, SSA 's adm;nisll'lIli'e budgct (!.imitalion on Adminisll'lIli\'c &pcn5Cs or LAB) has 

been inudequalc in recent years. SSA ha~ received virtually no inerea>e in ~ l.AE since 2010. In FY 

2011. SSA's appropriation Was a small tJccn:3se fro m the FY 20 10 level and Ihe I'Y 2012 

apllroprimion \I'as only ;liglnly abo~e Ihc I' Y 2010 lele!. 

Commissioner ASITUC recently testified abilul the ncgalil'e cfli:clS Ofculbaek,~ in SSA's 

admil1isuali~c funds for Fiscal Year 1012 un the agency's abililY 10 COntl)lc\c all or its poslcmillcment wurt. including SSI Sialus cllanges. and on Ih<' ogcncy'~ resourees for Infonnaliun 

Technology liT) im'eslmenls.1 We urge Congre~s 10 ]'I«)' ide SSA "lth adequate r~50urccs 10 con: 

OUI an ncc~'Ssal}' rrogr~nt ftmctions. 

b, tJse tnhanted ~ulomation 10 iml'rO\f customer service and outcomes for 

enefk ~r fli, 

As hi~hligh ed du ring Ihis c~ri g, in rec~n l carS' SSA h:lS dcvelop«! a number offlllimnalcd luols 

!U inen.:~sc cniek-ney in handling an c, ~,.,illcfcasing \\ortloud in ,im..:s of d~clinillg udmillisll'll1ivc 

resources. SSA can expand un ils e/Tort." to usc Il;'<'h".)1118> 10 improve the e~pcricncc and outeomes 

ofb.!nciiciarics in s.e~eml wuys. 

Firsl. SSA ~ho ld pro~ide ~n uplill11 fur illdividuab III compklc an applic8lion for SSJ onl in . 

Currently, applicanti lor Social SL'CUrity itl~ II di~bilily benclilS cun tile online. Appli~w,lS lor 

, SI"lOmCIll or Mkh.d J. """'C. Co""", ... i",,,,,. Social s.:CU,;I) Ad,n;"i'U';I(;on. bcrOf~ Ihe Fina",c C~"'n>iLlcc."r 

Ih. U.S. S." ... , M~) 17.2012. 

• 
63 


dkrause on DSKHT7XVN1PROD with HEARING78762A.049

Title XVI benefils cun fill <lUI ~ DisohililY Repon online. hut mUSI s.:hedulc:1n nppoinlmcnl wilh 

their local SSA fiell.l olToc.:: Iu eumplcl~ Iheir 3ppli~ation. "hh"u~h Ihe SSI eligibility ailcna an:: 

eomple~. bolh SSI applicants ~nd SSA \\ould hcnefil fmm Ihe a' ai l~ bilit) uf an uPlion to com pi etc 

Ihe ~nlire SSllIpplkation unline. This uption would be pnrticul~rl y helpful for individuals filing:l 

"oncum'nl application forTi ll.:: II and Tille XVI h,·ndits. 

Additionally. SSA needs h) develop ~ hclter caminw; reponing nod recording S)stcm - including 

prm iding "nnption for online ,,'age reponi ng. for SSt recipicnl~ _ thaI allows Ihc a~cncy to pmllll,lly 

adjusl hcncfit payments. Unlimul13tcly, adjustment .)f hcncfits is l)nC areu thai has slipped due 10 

stnning ~ho agcs. When a beneficiary faithfully nntifies SSA of C"Ilrninl!S or .1lhcr ch:tngc~ thnl mny 

rcdu~.:: benefil paymcnl ammmlS. il nmy hi: months or }can. be"m: SSA monds an ovcrpnyrnem 

nutice, demanding repaynll:nl uf sU111et;mes tens uflhuusands of dullar.; Qfaecru~-d Qverpaymenls. 

Oencficimies ~re ~hockcd to I"1:ceivc. these noticcs. when they reu~(>nably a~sllmcd thill SSA Imd 

pruce~ cd Ihe ;nformut,(ln Ih,'y submillcd. It is ~haIlCTIging. lfnol impossible. for M.me(lnc subsiSling 

on bene fIlS :llonc 10 rep~ the ovcrp:lyment~. Many peuple wilh disabililil'S all! wal)' of allempting to 

work outQff<'1lr (hallhis may giw rise 10 an Qvcrpayment. his imponl>nt to nOlclhal. in and of 

Ihernsdvc~. overpayments do not indicate fraud or abuse as bencrlciarics arc encouraged 10 ,,·ork if 

Ihey are able. 'flIe probkms arist "h(.11 reponed earnings arc nUl propaly recurded an d monlhl)' 

tWer,JllymCllts nrc flOl propcrl~ ndju,t~-d, Improving SSA·s cnmings reponing and 1\.'\:(lNing S) Slem 

will reduce n"'."rpaymcnIS and "mo,·c ba".i~ rs for bendiciarics who wish IU Hllempl II> ... "rI<, 

SSA also should consider using its COIIlinuing lJisohiliry Rcview Enr.)rcell1~m Model to help prevenl 

[",,,rpayments before th~) happen. 'Il,e Cuntinuing Oi:;abilil~ Il:cvi~w EnFllrccmcnl Model is a 

cum pUler al~orilhm that d~t<'rminC$" h;eh disabililY ea~ should Ix: pr;uriliLed lor Tel';':'" 10 

minintil'.l" I~rg~ IlVcrpuym.;'l1IS due 10 ill~omi' from c:lmings. and initime recI\\"el)' clTons. fhis 1,,,,1 is 

an excd ~nt e~~mple tlfho,v tcchnology an increase efficiency llOd prugrmn inte~rily. SSA sh"uld 

also usc itlo largel rn:ncficiari~"'S nl\1sl in need of c\lunscli"~ Uboullhcir henelils and rqJOning 

",~ponsibililics. 10 pre,·cnl uVC'1"')'men~ bcr..,rc Ihey bappcn. 

SSA ~Iso nced~ 10 enhonce Ihe usc und "p~rotion of ils toll free 1·800 telcphone number. SSA directs 

lOony activities 10 this loll free number, lrum initialing 9 claim for Ix-n~fitS \U repOning 8 ehangeor 

address. CIlITCl1lly SSI-only bl:neficiarics can us.: ih.' 1-800 nomber 10 repon earnings. bUI SSDI 

beneficiaries cannol. Addilionall}, thlTe is no ' handshakc· ht1wccn thc computer syslem us~-d by 

SSA·s l-~()() numh~T staff and th~ systems used by local field rutd hearing ofliccs. As a restllt. 

repnns mad,' by daim~nls via Ihe 1-800 number onen fail 10 be relayed 10 local lield office and 

om, .. c oflJiSllb;lity Adjudicmi\,n and Re"'c" (ODAR) per>Onncl. This can hu\"e lerrible 

ctJn~Ctlucnccs. I'or e~u111plc, if a cluimnnl·S change "f~ddn."$s is ",)t CI'n11111lnkated tQ Ihe local neld 

ur hemin!:! office. the cI~;mant rna)" fail 10 receive n(}lice ofa h,·aring or ofr~quired ap[l<.iOlmenll;. 

which Clln resutl in dcl~y and/or denial of bene fils. CUrTeIll hencficil1ric~ may not r~ccil c notkc of 

SSA'~ inknlion Iu terminat,· bendi[.,j. Enhancements to Ih" I-RCNI number can hdp pre, enlth~""" 

kinds of problems. 

Additionally. as SSA ,.,.mps up its tcchn\llogy lor id"ntit,.ing [l<ltenti31 ineiJme and "."~ource 

eligibiliiy issues. Ih,'I"C is a longo\'erduc need 10 CSlablish an aU\(lmalcd proCl">S for lugging;n 

~ppetlls ofod\"CT"Se dCI~'nl1inntinns WId for having an automated prllCess thai a~~urcs CQntinU~li(}n or 

b<:n~fil.i unchanged '\ hen an appeal or requC'i1 I;" "ai~~r j~ timely filed. 

I'inally. I would like 10 reitcrntc thut SSA "ill need ~qllale ndministrntiw fundinl!.l0 make munrof 

11K""" improvcmcn\, in Hutl.1matiQn pus~ib!c . 
64 


dkrause on DSKHT7XVN1PROD with HEARING78762A.050

AdditionAlly. liS nOl~'\I "ll\wc. mlm)' p.:(Iple will! di~uhililil'S I~ck Inti.'rnl"l O~CC!'iS and ri.'main unli~ely 

It) <Jbtn;n ;nfumull;on and occ~s~ scrv;tts Ihro,,!!,h SSA's " ellsitc. E\'cn as SSA see ks 10 di,eel 

claimants to ils "cbsitc, il $huuld conlinue 10 display and plllyi"c "'rilll'n publicalions in hxal I1dd 

offices 50 Ihnt individuuls lucking IIMmet uceess or cOlllputer plllficicllt)' urc nnt at 11 disadvantage. 

c. Ellsure ,'ulilililiUlion ur Iht Work Incellli,'" Pilinning lind Assisla nce (WIPA) 

and Prnltcllon and Adyo~acy for Rcnrlidarlf~ or Social Sctllrily I PAnSS) 

prug rllms. 

The WII'A and I'AB$S progrnms. esUlbli~hcd in 1m. providc critically imporlnnl cmplo~m~nt 

sen'ices that hdp hcnelieiari,", "fSQl:ial Securily'S SSDI and SSI dis~bilil~ pmgrams auain "'r 

cconom Ie scli:sufficieney. 

WII'A grunts go 10 l"c~1 non'pruf'''' ~n<.i othlT ug~ncics 10 suppurl oUlreach .• 'ducalion. lind ""nefilS 

planning SlTvices fur SSJ and 551}! beneficiaries about wur!. inccmivcs and scrviel'S for finding, 

mijinl~ining. and odvuncing in employment WIl'A gl'llnt~es inform heneficiaries about th~ iO]p~cl 

lhal <'O]pl~m~nt willlm,e on Ihei, di~abilily incum~ and medical co,'emge. and add","S many I)rlh~ 

n.'a! r~ars Ihat Indi~jduals have about going 10 work at Ihc risk of Josin~ hc~lth Covcr-lge. 

I'AIJ5S provides K" ide mnge t)f scrvicc~ 10 S5t and SSDI hcmcliciarics. Thi. ineludes i"f"m,aliun 

and lId,'icc aboUI obtai ning v\lCatjun~1 rehahilitation and l'fllployment scrvicl'S. informhtiun and 

",ferral ~cn ices on work incentives. Dnd Mmcac)' or olh~r legal services Ihat a h.:n~ficil1r)' n«ds In 

5«u"'. maintain. or repin gainful trnplo~ O]enl. 

The clllltinucd e,~istc cc ofthc WII'A and I'A!lSS pn)grams is und~r .'I<'rious lhreat. Although 

aUlhorizm;on for both programs c~pired on 5c'ptcrnbt:r 30. 2011. 5SA "as abk 10 sClllSidc funding 10 

SIISlu;nthc PABSS progrJrn until Septl'mbcr 30.1012 and Ihe WIPA progmm unl;1 June 30. 2012. 

The r;:cenl expiration IIffunding fill lh~ WIPA pmgram already hn, rcsullc<.i in \hi' larotTs Ormlln) 

\\Cll·lrnincd employc"-~. The impending C~pirJlion of funds fur the l'ABS5 p'ogrnm makes il 

impussiblc for I'ABSS agencies to engugc in budgel and planning activilies and ercales signilkanl 

employmenl uncenainl~ for the I'AIJS!l ad\'ocute:<\, 

Thc CCD Social S~"Curily Task Foree SUpporl5 measures to continue the WII'A and PABSS 

prognuns. ueh as ILR. bObL \he IVIPA ""d f'ABSS Crmrim/{lIi()// ofServicts ACI <if JOI}. which 

II ould ensure S$A'~ au\horill' 10 continue to provide flmding for the proyums. 

d. Upda lc Iht 5S 1alis 1 ~nd ~a"ing~ limils. 

Congress should Illise the SSI a$sct limit and income disregards and in<.ie." Ihem annually for 

inllution, Thl' lI10mhly une<lrned incom~ disregard for lin in<.iiyidual hll.~ n .. maincd UI S20 and th~ 

c3rncd income diSregard for an i"dil·jdual has remained Dt $65 plus onc·halrofrcmainin.s camjngs: 

since lbe inceplion of the SSI progrJm in 1<,)72 ." Similarly, lhe SSI assel limil ot" S~.(j()() for an 

individual or S3.000 for a coupl" h~s not ehungcd since 1989. Neither the income di~N.'gards nor the 

ass.cl limit arc ;-ndc.\ed fur 'nllolion. 

The cSl ~n1dy low in,:omc <.iisn.·gards ml'llIl lhut mallY $SI benef,ciaries ellfnings tr;gg~r an 

OWrpH~ menl fur ~I'cn relativel)' mt}d~sl amllunts of lYork. Nearh hnlf(aboul 45 p"n.:~nl) of 55 I 

• U.s. !-ioo"" cfR<f""""OI'u;,·u. C:om,nim.'" 00 Wa)' •• nd M •• "'L~()()8. O/l,·kx,.""",I .t(""",,,/ ""'//)IIW'''' 'm-

/, .. "gN'~'r IO'lihiR tl~J"_"""''''i'''' IJ} ,"" ('"",m,,,,,,, "" 1I'''' ~''ml M~"N'. , 
65 

f 


dkrause on DSKHT7XVN1PROD with HEARING78762A.051

benefic-iari" "hu "ork cam ~ thn S2<tO f>l'r mO;)nth .7 !ncr,,~>ing the earned incom~ disregard and 

ind~xing it for inn~tion ',ould help h~nefid,tries and make il ca$icr for Ihem hl work. For SSA. il 

has the potential I!> ",duce \he agency ~ udm inistr~li"c II"llrklllut! for Ihe.'e low·w~gc earners. rWun· 

overpll} m(·nlS, and perhaps lead to administrati ve SlIvings. 

Raising thc asset limil and income disrq,ards will ulS{) pn:,,·ide 1Y0r~ing bcnl'liciati~s the.upp0r\unity 

to sa,C for hO",e 0\\ ncr,shi[l. educalion. or ri'liremenl, and" ill pn)kocl their ~Ccc'Sl; I" Medicaid. 

Fl'lr IMeso: 1"I:3SOns. we ",comment! nli~in1!- bmh the assci limit ant! income di.lrcgards wthe unlnunlS 

thalth,·y "ould hnve b£'cn if index-cd sincc Ihci, inception. 

1'. Support ll lrQ!i I1 J lhal wo uld ~n lit cuncurren! l' lIdi dll ri~ s. 

Concurrent b£'neficiurics ofS$1 and SSDI t~cc a rmrticulurly COlli pie>; SCI or cnmin""s und a,SCI nob. 

[kmonstrJlions u!low $SA t<) I(.·st a<lditi{)nul ways t.I help bcneficiutiL'S IllIvigate th" S)SI~In. 

including. Ihrough progmm simplificDtion und the use oflcchnolog)'. Currcn!I~ . SSA has 

demonslralion aUlhbrity F{)r ils Tille XVI f'rognuns. bUI dL111OnSIrniion aUlhority rur Ihe Title II 

progrllll1s need; 10 he cXle"dcd, Conl!f\!s~ should eXlent! SSA ~ Tillc II demun~tralinn DUlhority Dnd 

sh(>uld ;!:IUpport inno,alil';' pn)fIO~;als Such II.~ Ih~ Wor~ Incenlives Simplifidl,on Pilo\. 

In su,"mJry.1 w,wld like to cmphllsi~~ the need for SSA 10 h~vc udcqUllle adminimalivc ",sources, 

to uw technology in ways thai i"lpml'c Slomcr -",rvicc and uuli:(lmes for Iwn~ficiari .. s. to c\lnlinu~ 

lhc Wlt'll Dnd f'AB55 progrJms.ln look at ma~ing it easier for 551 bcndiciaricsto "ork by rnising 

Ihe SS1 illCOInC c~clu~jo s aod asset limit lind illdc.xillg Ihem For inllnlioo. and to .supf'Ort 

demonSlrations tllat would benefit concum:111 SS1 and SSDI beneficiDri~s. 

Thunk you for the !Lpptlrtunit)' \() tC"Slify on b£'hulf urlhe' Consurtium for Citizens with DiSlJb;liti~ 

S()(:;al Security T3sk Force on this importlll11 topic. I look (o",ard 10 lInswering au) questions) uu 

may ha'·e. 

Suhmill cd on behalf of: 

Associ:.lion ofUniVl'rsity Cenlers on Disabililil'S 

l3azclon Center for Mcnl3l Health Law 

Communily Legal Services or Philadelphia 

East!!r S~als 

Health and Disability Advocates 

National Alliance un Mentallllncss 

National Association orCountilson Developmcnl.ll! Disabilities 

Notional Association of Dis:lbility Representatil'es 

National Organi~31ion ofSociul Security Claimants' Repr~ntmi ves 

The Arc of the United Stmes 

Nutional Disability Rights NctlVor~ 

United Cer~bral Palsy 

United Spinal AssocimiolL 

7Tabl• ~6. OIind .nd ~i .. bl<'il recipient, who wol1< . nd th.ir Hm~ ••• 'nin ". by .. t",,{od ,ha",,{cri.ti<s. In Sotiftt 

S..~rit y Admlni'{'"tion Pill I). S$t Ann~ t SlaliSli<·.tll."""n. 2(11(1. 

, 
66 

Chairman DAVIS. Mr. Besharov, you are recognized for 5 minutes. 

STATEMENT OF DOUGLAS J. BESHAROV, PROFESSOR, 

SCHOOL OF PUBLIC POLICY, UNIVERSITY OF MARYLAND 

Mr. BESHAROV. Chairman Davis, Ranking Member Doggett, 

other Members of the Committee, it is a pleasure to be back. 

It was a great pleasure listening to the other speakers because 

it is rare that we have this kind of agreement about the need to 

move forward, and I was really impressed when I read about the 

bipartisan work of this Committee on the data-matching and the 

modernization of means-testing programs. 

I think I am here a little bit from another world, but let me tell 

you why I think it is all connected and why I think it is so important. In the other means-tested programs that I watch, whether it 

is food stamps, WIC, TANF, and so forth, the process of eligibility 

determination has become so expensive, and so much of that cost 

is on the States, that the States look—that the Federal Government helps the States to do everything they can to do less eligibility checking. So, for example, we have 1-year certifications of income in food stamps. So, for example, we don’t have asset tests in 

food stamps anymore. Maybe a little bit of it is ideological, but the 

main reason is because it is too expensive to do those things in the 

modern world, the modern world where data processing and data 

searching are the low-cost answer. 

My question is why should both liberals and conservatives want 

better eligibility determinations? And I want to spend a few minutes on that because I think that is the crux of this discussion. 

It is not that everyone gets more payments under disability or 

everyone gets more payments under food stamps. It is a very haphazard process, and there is great unfairness. The technical term 

is horizontal inequity. That is to say, if I am lucky enough to be 

with a caseworker who says, ‘‘Oh, let us forget about this income,’’ 

or if I am lucky enough to be with a caseworker who says, ‘‘Well, 

you deserve it even though you don’t formally fall into the rules.’’ 

That is just unfair. And the thing about automated systems is it 

becomes less possible for there to be that kind of unfairness. I 

think that is very important. 

The second thing—and I am struck by this—is the possibility to 

do serious reform of the system as a whole and especially its disincentives to work. I was struck by the comments of my colleagues 

and also Mr. Doggett about the earnings limitations, the set-asides. 

Let me mention a few things about that and talk for the 2 minutes 

I have left about the U.K. 

These programs are all interconnected. About 36 percent of SSI 

households also receive food stamps. If SSI goes down $1, food 

stamps go up, I think, 33 cents, if I remember my math on this. 

If SSI goes up, food stamps go down. And this has to be done by 

hand. I was going to say across Committee jurisdictions, but it is 

really across agencies at the State and local level. We are in the 

21st century. We shouldn’t have to do it that way. 

The U.K. has a process of making real-time eligibility determinations. And it is striking only when you think about U.S. Government actions, because, of course, when you use a credit card to buy 


dkrause on DSKHT7XVN1PROD with HEARING
67 

something, it is real time. And so the idea that we can’t match 

what is happening in the U.K. is striking. 

What the U.K. has been able to do (because it had a process of 

systematizing eligibility across programs), is to deal with the work 

disincentives embedded in these programs, whether it is the income set-aside, whether it is an earnings disregard, and whether 

it is the effect of food stamps. 

As you probably know, depending on the family, and depending 

on the income, marginal tax rates in this country for means-tested 

programs can be over 100 percent, which is you earn 1 more dollar, 

and you owe the government more than $1. In the U.K., they have 

been able—and it started under the Labor government, not just the 

Conservative/Liberal Democrat coalition—to reduce the maximum 

marginal tax rate to 65 percent. Many of us wish it was not that 

high. But I think this is the promise of modern technology. 

I hope that this Committee will be able to pursue this topic this 

year and in the years to come. Thank you very much. 

Chairman DAVIS. Thank you, Mr. Besharov. 

[The prepared statement of Mr. Besharov follows:] 


dkrause on DSKHT7XVN1PROD with HEARING
68 


dkrause on DSKHT7XVN1PROD with HEARING78762A.052

.f<"itimonl \\.~y J/>l .... ns_U".. •• f r."'Iu>o~ (0 lmlPfOw 0.: Adminislr.>lio.>r!of 

ssr. rlt.,,"'ill.IIil[gi,"I"lllc~":;f'tlnc" .. _12})1 19A.wpd 

SCHOOLo( 

PUBLIC POLICY 

Douglas J. Buharov 

School of Public Policy 

Wnil'ersilY of Maryland 

tJOI}405-6341 

bl.'sharov@umd.edu 

Testimony 

Subcornminee on !luman Resouree$ 

Com.miltl''' on Wnys :md ~~ans 

U.S. Iiouse of Represenullil'cs 

July 25. 20 12 

Chairman Oavis, Ranking Mcmbi:r Doggc1!. and mcmbers orlh" Subc(lmmillcl', IhanR 

you for inviting me 10 tcslify on Ihis imporlanl lopie. 

My name is Douglas Besh~rov, and I am 3 professor ~l!hl."" University of Maryland 

School of Public 1'01'I.""Y. wherc I leach cours~ on pollcny aUeviaJ!on. program cvslualion, and 

policy analysis. I also dim::tlhe universilY's Welfare Reform f\eademy (WRA) and Cenlcr for 

lnlcnmtional l'ulicy Exch3ng~'l; IClI>E). Of puni,'ular rell'vanee to Ihi$ h,'aring is our project on 

"Leamln& from Abroad." wmch is dc:;igned 10 glean polk')' id~1lS from (llher nallons. Our w"b 

site is w\\"\uHndeiN.('Jrg. 

The lopie ofloday's hearing is the "Usc ofT.:chnology to Improve Ihe AdminislrJtion of 

SSl"s Financial Eligibility Requlrt'ment.~.~ Mod~m \(ochnology, of course, ean be 8 mixed 

blessing, and in ewry (."oIse one should weigh the benefils against thecost5 of adopting II new 

system. 

My ICslimony focuses on the human side of program impl~mentation. and 11('JW modem 

ttthilolugy can be lIst-d IU limit "eligibility crc:ep," eligibility Cr1;'1.'p is Ihe process Ihrough which 

program's are successively cxp3ndl'd through a series ofs!1l311 swps. many of whose impacts 3re 
69 


dkrause on DSKHT7XVN1PROD with HEARING78762A.053

i!llpi.'r~eptib\e at the tirnc_ 

I Ilouid like tu t1iscus~ tWO aspects of this procl·SS. Th,,}ir.!! is the. progre-ssil'e Statutory 

and administl1lli\"e expansion of eligibility through small changes in law or process tbat. on their 

oll'n. might 'e!ll a reasonable ndjuStmcllI to the circumstances, but thai have tin,' cumulmive 

ciTC{;t of dr~malieally increasing eligibility, 

TIte secolld is the documented tendency for eligibility ml.:s to be applied in a 

progre,~s iveJy Inore generous manner by lirsl-kwl agency ~t:l T. Those who deal diJ\"ctly Ilith 

progr.lm rttipicTllS ("sm:ct-lcvcl bure~ucrals" and their sUjX.'rvisors) geTlel1llly have wide 

discretion in del .. nnininll program eligibility, Thi~ discretion SIems from two ~Ourc("S: (1) the 

ari~bilily nfthe circnmst:m~~5 of clients n.oquin.'s Ihalthe slreel-iewl bUn"dutral usc discretion; 

and (2) Ih(' complex and ,;omelimes <'ontr.ldielOI)' Il!l!ulations and policies thaI are Jl,ivento 

slreN·lewl l)ureaUer:l1S for implementa tion allow "fronl-Hne wo",ers to selectively opply rules 

lhat are too voluminous to enforce in their totality:" ' 

This is t'Spt.'ei ally true in meanS'I~stcd programs where the detennination of income Is 

often baSi.-d on a scr ~'S of difficuillo monitor decisions, ( it often ~o applies to the 

detenninmion I,>f"disability,", i\lthl,>ugh the$<! realities are usually vicw<,d as genemting 

inappropriat .. govcmmeot sp"nding. al a d(,>eper IeI'd, th .. y can l\l ~o gCHer"le "".ious probh:ms of' 

horizonlul equity, Ih31 is. giving bendilS 111 some who nre relmivcly beuer otYthBn olhe rs simply 

bcraust;'c uf the particular prdcrences uftl\<! street-level decision maker. 

La;;1 September. I lestilied before this subeommiu.:e about the expansion ofsafety-nct 

progmms <':Iuscd by eligibility ('>xp:lnsions both bcfort;'c and IIl\er the I'(.'(;cssion, as wdl as by the 

continuing high level ofullemploymenl. D.:p"nding on whnt programs one counts. the fcdel1ll 

and state governme nts art' now providing the high"stlcv(.>ls of melmS-Il'$tetl assistance than at 

:lIly time in Illlt hiSlory. 

Many ~ thes" e~pansions as a long overdue increase in aid to low-income AnK'ricans, 

lind thut mayor may not Ix true. Uutlhe I~rger point is 1h'l[ selling and implern.cllting e ligibility 

ruks-eonceming income and asset!l-lQr IlleS!: progralrui should be an explicit dement uf 

na lional IXlliey nmki!)g. not the result of picci'll)eal, un"xm:.nin"d d"ds;ons. On this point, I 

believe that this COIlIl"il1tt'5 work on the upplication of mild em tcchnology-faciJit3led by data 

st3udardil'':lIion--can hclp enonnollsly, I knoll' tbat this has been a bipartisan elTort, diffkuit in 

these times. but much appr.;cinled by those of U~ in Ih .. lidd_ 

I hal'e Sp<'lIt mun.' time studying tht' Suppl<'mrntal Nutrition Assistance Progr:lm (SNA I') 

("hat used to be called "tOud t~l1lpf'l and Ihe Sp .. cial Supplcment~1 Nutrilion l'rOgtam for 

Women, Inftlilts aJld ChHdrc,t (Wlq eligibility tlnd cnrollmcnt Ihan disubility progmms. but the 

c){pcric!1l'Cs nfthcS<! progr.lm~ pro~ide uscfullcsscllls for disubility prollf;lms aboulthc 

'Marcia Me)'c ..... "d SUS"" V'''''',,>,C'T-Sl<'eCt·l~ \.lllurc"''<M,;&nd rubl;, Policy" ill rio_ I/omlht.><'*'i 

r,.hlir-,U ... i"isJNJ';'III. No, lI, Ouy 1'.1.", I.I"dJ"" ri."-e(11,.,.",,,1d ., c,,: S.g~, 2003 . 247. 

l 
70 


dkrause on DSKHT7XVN1PROD with HEARING78762A.054

importance ofwell-establi sh~d T\llf'$ cQncerning in~o01e find as~s-systeruati~e.J and monitoml 

by modem technology ~ystcms. 

Since 2000. SNAP and WIC casdoa~ and expenditures have iocreased dramatically. 

B~tw~en 21)()O and lOll, the SNAP casc[Q..1d incl"t.'ast'\l by (IOOUI 160 p"rc~I1I' from [7.2 

million individuals 10 aOOu144.7 mitnoll individuals) and c;"pcndj(u~""S rose by abtlut 234 

pcrecnl (from $22.6 billion 10 $75.7 billion)? 

In Ihc same period, Ihe WJC caseluad increased by 25 petccm (from aboul 7.1 milliooto 

about 9 minioo women. infanls, and children) and WIC expenditures ros.: by about 36 

percent (from $5.2 billion t<) aboul $7.2 billion)' nOt (\luuting lhe rising eoslS 10 Siaies or 

income fomlUl:1 reimbun;emcnts (from aboul an additional $1.7 billioll in 2000 to aboul 

$1.9 billion in 2007. Ihe last year for which th= dam !In' uVlIilable).' 

This risc in cascloads in the SNA P easeload is g.rcat<'r than tlK"" increase in the number of 

eligibles (through incre:lSing poverty and lh~ number of new mothers, infants. alld ehildren/ 

would predict. 

Between 2()OO and 20 10, Ihe nl.lmbc:r of individuals in ra11li!i~ $ with incomes bclo\\' 130 

percenl of poverty incre'Jscd by 17.1 milli,)n, from ubout 45.8 million to ~hout 62.9 

mi[!ion."In Ihm samt' period. Ihe nurnbc:r QfSNAP m;ipic111S increased by 13.1 million. 

'V..\i. Dopot\"""" "r "sriculn",,- Fn(><!!Ind ~u,ri,ion Sen'kc. ·Sul'I'lt'meO" ~! ~\Ilri'i,," .A..~iS ~nce ~rlIn1 

raJ1i~jr"n;,," Qnd Cos,,,··It\tp,'lwv.w.fn,.u¥4 gMlrdI91.\!'~wnn'~" htm (11<:,..,»<"<1 J"I~ 13. 20)2). 

' u.s. IJ<."anm"" of Agri",II",., ... J.<to>J onJ Nutrilion $.",.;0", ··W\(.· 1''''8n"" Parti,·i]l:lti"" a.1d <'"0>1.:. bun· ""' .... In., "W.en, ·u<l"j.l,mm_ry.btm ("",,<"SSC<l Jul ~ 13. 201 n 

'Oougl .. J. II..!""",, on<! I'><"'BI",'\\. C.Il. ~ u""".i/Jn nI SI/Ie £1iJ;.lbi/(O '''~1 £"roIl""III.· CooJ 

f"'~J\I""U. ro"'mil~,f I.oN.I Df"·l"f'lil)n. "",fCumpUfII" Ft<kml 0fJl~ii.l14t("ull<1'~ par.:. )"1D: w.lr.,..... R.rom, 

Aolidtmy. MW"Ch 2tlo~). 

btl ~ l\Iel f",,'ac,d.my .orM>ub'lifl)(l(lassi,lIi"b<-J "" p",,,ioo,_ ut. IV I C _ bligibil1l)' _and _ F..nrulltncl\'_ lI'I _ OJO<; A_pdf 

I",," ~d Juty IJ. 20\2\. 

AO:U\il t~.l>e'''ffit 2000 ""'" 2ij j I. ,he", ""~ a$I;~' dc<line in bin"". from 4.1)6 million 10;>3.% mllliM.. 

(D,win! thO! po.";O<!. ~~ al:l<) rvst lOan oil-lime h;~ nf4.J1 million in 2007.) Urad~ E. 1!'millOn dOO Paul D. 

SUlion. R«em l W,wb In Birrh, ulkl ~-<l'Iili()" R<JI,)j 1'/ir()"gh lNc.·nobi,·lOII (Allant.: ("cnt~'" tOr m"" .... l ·ontrol 

an,l Pr~w~t ion. M.) 1012\. 

htlp:!"'''"'' .'''"'.fO\ ' ""It!lidalalbc';l.tlbin.hs J.'ft\llt~ _ d..-(~r;....,. _lOl ll1olnl!s J<nll1l) _ d«:,'nber _10 II pdr(":<c~d 

Jul! 12.10121. 

'UO,,,,",,ill ofMol:'oI.oo I'nwrly Anal).;; and "r.b"]lIIi,,,, Tnol. ,·."i,", 4.7.1:!III!! U.S. C,","""" l1u,."" •. "I\so:ll>\l So" or All p..,plc. f"",il) .nt~ al><l Unrelated !ndivid,,,,I. hn:l(,,<! b) It,,~,,,",·,,, rn. .n) R:u,o and 

R"".: 101/)." bttp:/' ''''''' .oollll"".l!-" .. Ihbc""'",,/q"tablc • .'UnO I 1/1"',","",..0 1_ 1)0_0 I.h'nt j;tc"C''''''''') J"I) 12. -::!OI2) 

l 
71 


dkrause on DSKHT7XVN1PROD with HEARING78762A.055

from aoout 17.2- millioo to aOOllt <10.3 million.' 

Why have SNAP ami WIC cJsdoatls aod ex~ntl;tun.'S incl1.'asctl so much'! Although a 

siruggling economy and an incre"se in povcrty certainly conlribule 10 the increase in enrollmenl, 

SIDlu(01)' antl adminislmlivc expansions in eligibility and l005ened criteria and proces,es for 

dClennioiog.il1c(llne have also been major contribul,mi. Here's what has hllppen~'d undcr SNA P: 

SNAP 

Nulfijil.'u //'i)'I.'f!i fl'~·1S. To meel SNAP asst:t n:quiremclllS, J household must haw below 

52,000 in assetS ($3,000 for households with a disabled individual) Hnd no mot\' Ihan one 

vehicle (worth les5 lhan $4,650). IlouSC'>. retirelllcnt aCCOlintS, and personal property are 

not counted as assets. 111(,' Agr;euhur.Jl Appropriations Act of2(){)() allows Slates the 

option (It'usinJ:: the ~ehicle Ill!sel lest of their Temporal)' Assistan<;c 10 !'Iced}' Famiji;:S 

(TANF) proJ::r31ll for SNAP r~ipienlS in,lead of the SNAP vchide llS;;ct <;St.~ As of 

November 1010, thirty-three states and D.C. exeltllkd the I'alue of all vehicil'S and 

allother /in ... cn stales exclude the I'alve of UJll: vehicle." Using Ihe cul<;gorieal eligibility 

provisions created by USDA regulations in 2000 (described below), states 31so hal'1: the 

option ufusing the llS.'icll"SIS in their TANF progl1ltnS in pbcc llfthe SNAP aSSCt lest, 

Thirty-si:>; $Ial~ <!~ereisc th i~ option and do not hRV<! an asset kost for SNAP 1l:<:fpienls,IO 

Vtrijj"i/l!; illrfl",e I'Ii/:ihilif)' (lrIfr "" I'I! u yeur, Prior to the I'atm S~~'uriIY and Rur~1 

In\"~suncnt Act of 1002 ("2002 Fann Ilill"), all households were required 10 re<;ertify 

their earning clel)' Ihre(' monlhs. For households wilh camings. states had Ihe oplion of 

u~ill£ "sinlplifted reporting," whiCh increased lhe ccrtijicalion periods for households 10 

up to one year (wiill h{)IJschold, rcquin-d 10 report a change in earnings only iflheir 

~ilming~ esceeded th" gro:;S ine(lme Ihnil (If 130 po::l\:t'nt or poverty), ImXJIIlc was 

'us, C~Jl$"" flure,au. -Ag~ IUld S<:< "r All P.""k. F~mit y M.m""n.. lII1d li"I'<'I,"od l~di "jJ",,!;- h<rulod b) 

InNmc_l ... P~""ny R!Ili ~ and R,,",,: 2007." 

hllP,'/""".cC"l1su"/!'!,iIlh<>'\"'.w/cpst:lbl ..... II>I><."tUI03100Sl"'Mnc,,QI lJS O\.hlln (~J July \~, 101~):.r!<1 

V.S. c:~s""' I!ureau, -Al!"~aJ !k.\ of All l'<'O\lk.I'dmity M'~nll<'n . und tJ~~lp!<:<1 lTl<lhiJuab ItmllN 1'» lnc"mt'-

l()oP",-m) R'lj~ "J 11."".: ;0 lO,- MI':II" "-.. C<n.t».II"~ihh<~ I ... w ... I<r'IlIblts/()32011/i"'>,·/1lC"'01_1 35_0 l.htm 

lac<e>."'IdJui) 1<.20121. 

'o..v,dSupor ond S.aII)' Ikon. N",, ,~~ {)pI""l< Ii> I~,prt> •• .' Ii", f 'UiJd SlamI' 1',hI"', R,d, (\\ 3Sllinglm~ 

IX:, Conler {"O" llt>dgo • • aJ »,,]j ~) l'ri.:lri.i .. , January 2001). /lIIP "'''''''W.d'rn {l [Hmsn a"'ticw&id lu (",,<~ 

Julf 13. 10(1). 

'u.s. DCJI'llIm<."" ilf A~~ullure. S..",J",,,,,,,j/1ll N~lrlllo" ,b,i",lti<...., 1'rG<g"'m: Slnl. OpIwm R,,,,,,,, 

(Alc_"'nJria. VA: II.S, i:kp<lnfTlO'nl of ApjC~ltUN , No.. C1l1b.'r~nIO). 

hllp;/lw"' .. ' .. ,f"s,u>d ... l!ov :maplrulcy <mOIS~18lc _ OrtiooYY-SIlUC _ Opliom.pdft ... -.:nsc.l Jul~ 12. 2m n 

''Gcmc F.lk OOilI\.ody A. A""senlle'll. nwS"PI!I.mwmf No"ririon AsSl:sr<,,,,,, T'",'/!",,,,. C",rf9O'kll/ 

Ellgihilily(W;o.,h inglOll. DC: C'"'lV""i"",,1 1I.~"" "",h S,onic<:. Marth 2\!(1). 

blIP: " ""'''' ,nB]i,m,/og l!ruUIMt,l"" ~'!CI ""' !li ItJ20~~,pdf{"" ••••• ,d ltd) 13, 2il 12 j, 
72 


dkrause on DSKHT7XVN1PROD with HEARING78762A.056

,eqll,red 10 be re-ver,f!ed t>very six months. The 2U02 Farm IJili gave siaies (he oplion Or 

using silllplif!ed reporting for nil SNAP hOlls ld ~. nOI j1l511iwse with c:tmings. As of 

NOI'ember 2010 (the lalcst data a~ailable), forty-seven stales and D.C. u:sed simplific-d 

,cportinl;. " 

What impa.'1 do thl"'~ rult'S have on .. nrollllll·nt and progmlll COSts"! 1\.1111'ia Hanrany orthe 

Univcr!;ity of MinllcSola found that " 'Iaxing of certification requirements in th" food 

stomp progrnm-that is, eSlending certification period,; to i,~ months and requiring food 

stamp rt'l:ipients to repor1 a chang .. in im:OI1ll' during th .. cenilkation period only ir it 

';"Stllts in thdr im:omc cxc"eding 130 perccnl of p.weny- Icd 10 a 9.2 p<:I'Ccnl incr .. aso;, in 

food stomp participmion between 2001 and 2003 {using the 2001 p.md of Ihe SIPP)." 

11:" 0''-''1: I/II! i/l ~·tJ e "/ ,j/I,en.·;11 rite "1)1~"elt l)ld_ A SNAP l1ou:sehold is dclioed (\$ "a 

group nf individuals wlto live together Ilnd customarily pUrdtRSe food and pn'p.1Tl: mcnls 

together for home consumptiotl.""· Some Slates, hOWI:'I'I.'r. impleml.'fllthc statule in a way 

tilal allows for brOllder eligibility. In Massachus<:us., for cxample. SNA P applieams selfreporllh"ir houschold composition nnd SUIte agency verification of household 

composition is only ri.'quin'd iftherc i~ somdhing "4u~slionable" aboutlhe reported 

household wmposition. In udditiou, M9&58ehu:ietts doe~ not require tMt th~ Ilou:seilolds 

store food SeJl.,ralc!y frol11 olhers who live in Ihc Ilou.s~ or that Ihey usc sCp:lmtc cooking 

fa~iliti~s.I' 

Comlli,,/.: less ilICllIIII! omi u//" "';" I: IIIOl'e dedllcl io"s ill m i<"IIlul/l/g Il/ coJl/e. To be 

eligible-for SNAP, recipicllts must hal'c WII.I·s itlcwlle below 130 perccnt of the poverty 

linll and tlCI im."o/l!1! below 100 percellt orthe poveny lille. The gross income 

I\.'quin'mcnts arc waIved for ,,,cipienlS who are categorically cligible for SNAJ' benefits. 

Net incaml.' i, caiculalcd by wking gross irn:amc ami subtracting n nllmber of deductions: 

a stalldard deduction (for ··basic. unavoidable costs"'). a 20 PC'fCL'II1 earoing.; deduction, u 

dependent care dcduclioll. a child support dcductioll fOT recipients p.1ying chilli suppon. 3 

"U.S. lkpanmem of Agrlcu lw .... $ullpk"""II'" N#I'/Ii,m A,$I.h" "..l'rogr,tl/l. Slm. 0",1(>11> /(<"1>1/1"1 

,A~J<aIl<lriIL VA. U.S. lkpanme!ll of "gricuIH"", No,·.mb<r'1\fIOI. 

hllp:tl" """ .fns.u><la.~"imaJl'tulc.n.t.~uppooiSf1I\C-'Jplionsl9·"'I.I. _ Qrli()lli.pdf(tc.."'I:Sscd July 12. 20 I 21. 

" Mari. Ila"",llr, "111l' th<: F",,.J S",,,, 1"<>JIFo\ITlIl<:<:-<>mc M'I«: ACO,'l;liblc1 tmp"0l0 ,,(Il"' ... '1<1 Chan~." in 

Rt"ortina: R"'Iuin:mtm;; and Assel tltigihilil) I.imi".- ./0111'",,1 nfl'oli"", ",/O(r'''$,,1td A/(mage"",1J( l"QI.l5. no. J 

120(6): 6OJ~ 1. ntlr;I",,..,,, 3.inl~""i.f1u." i! oY.<"l11iq~i-binirutlw~t111 1M 1()6.IIPI))'S'I",'R'J" ",, ~< ..... >J l'o'owmb<> 

14. 200~), 

" f'wt/ Stu"'P ,I" ,,(1911. ali .mornlod Il)rou&h I'ublic t all I(jS l~ . I O~lh ("",,&-. 2d .... "". UuJ) ~. 201J.l ~ 

.ce. 3,;)\ I lJ~ hllp:llogri<ullllr<." ... nJlc.""V/l.osisI8lionIC"'''pit.liun.tr:N$II'SA11.pdf(oc."" .... <llul) 16.2012). 

" PJlridJ UnIo:.r. Ikl:>orah Iloni!o.l""ra G~llanl_ R<l<hClk: ~hn.. ... d l'cl _l"o"I":'~"HAth¥N'IJ":" 

GHhk 10 til. SNAPiFood Siomp.lSllprl~fW'"'~ }'"""lrioJl "uMm,,,,,, i'rt>pwl' in ,1/.ns,)</,,,,etlS (Bt>stO<l. 

M""s:.;huset1S Law Refonn truth"I"_ J<\I1l/;lry 2012,1. hllf':t"'''w.masslcgalhdp.l><"8lillC'''''C·b..'''''til$ !ro.J~l~mJlS""a.j' <'<'''")'-SuillC/ ( .... ce,<"'-'<1 July J 6. 2012). 

5 
73 


dkrause on DSKHT7XVN1PROD with HEARING78762A.057

sheller dcdlJ~liQn, and a Illc>tiicul expe'lses ded uclion for lhe elderly or disabled. TIl{' 2002 

~nd 2008 F~ml l1ill5 (ollicinlly Ihe "Food, ConseNntion, tlnd En .... rgy Actof2008") 

increaSl:'d the amount ofthl.' standard dl'duclion. removed Ihe cap oflhc d\!pcndem cal\' 

dl.'duction. and ~lIow~.,j .statc$ to 1101 requirc reeipi .... nts 10 report ehang..-s in Iheir 

deductions umil their ne:l:l n.-eenificutioll." In 2010. the USDA n:poned tha, SNAP 

ret:ipicl1ls with c;tm<,d income had all :tvel'llg~ mOllthly gross ;Ilcoml.' of $1,174, butllet 

incomes of only '544, a diITerencc MS630 dul);tr.i," This h~s Ihe en,:c1 ofillcrcnsillg th~ 

Ilumber of eligibk households mId incemivizing <,Iigible non-recipiem huuseholcls to 

cl1mllto take advantage ofhigl1<'f benefits. 

lI.crtHJIillg 111 11 '//t101II1I ofbclIl'fits. The 2008 Fann Bill inere:tSCd the minimum monthly 

SNAP benefils from $10 a month 10 ~ percenl oflhe thrifty food pl:'n fot a household or 

one" for one- and two-penon households (about S 16 3 month in 2012)." The 2009 

Am<'ricall Reeo\w)' and RcinveslnlCnt Act (ARRA) inclt.'ascd the maximum benefit 

umount for <,~ch size uf SNAP households by another 13.b percent.'· These increases 

nm)' havc c<)ntribuled to the innease in th(' la\.:C-UP rJ1C of SNA P benefits I!ccausc Ihey 

increased the amounl of SNA P benefilS- f<'lreligib!e households with <,umings (Of \\hom 

the initial benefit olhtT\\'ise would h;tve repft'se1;ted II negligible ;ncrl'Use in their incllIne. 

Ac(-ording to ft'S~an:h~rs at the USDA, -'TIlt: pi.·rcl·nlage of eligible individuals <'hoosing 

10 participate in SNA P also rose from 54.1 percenl in liseal ~ar 2002 \0 72.2 (Xrcenl in 

fiscal year 2009." " 

"u.s, /kparI",,-~,, ,.f i\gri~\lI'"",- FOOIJ ""d Nulri"oo ~,, kc, "2002 Famo tllII: S«"<)JI-by-S"",jOl' 

Swn",~ ofl'ro>i,ions A{f""inj; F<;IOIl S"""P r'ro,i:,;iOllS." 

hllp:/lww" .fns."s .. b.g(,Wlcgal100lJ"",,_bill/food_s''''''p!' .html (o<cC'S><'d Jul) 13. !OIZ>: and Dunl~ lI.o.o:nl;oou,n, 

Ft>Q<ISlu~'p ""'.',"Q'18 .. {II", Fil.a/ !1)fI~ Fu'~' Bill (W..sh'nl!'on. I)C ; C.""-.,.",, S".!so-~ 0IIll p"',cy PriQriljes, lui), 

2008), hllp'{IWW" sliM' 1'r1l ~D1< iJ'~;s " (01'/11 >lcw&:i~,,1IQ (~ed July 13. 201 ~J . 

''r: ... 1),1.", •. "Di Filioo. and ~[ar\; S-,,1I)'.,.-, ChoITjCI""'IC$<>fS~/If,Je,...."'1li Nu,ri'woA",,.WlICt PI'QfU<>m 

1f001~ I")"'J: FI~,I Yttlr ]010 (AI"",,,,dri .. VA: U.S.IkP""mom or Agricul1U1i:. S''i'tcmber:'Oll J. 

hUp;/A,,,,,.(n~.usdlt.!l.o~ '''Wmtlnuipubli''''''dI~.II t.r:SJl'ani~ip;ilinnl:!() OCh""",k-ri>li<,.pdrl""~ July I J. 

20m, 

Doul~ R....,nb:lwn..FOiNlSlanip !'rtIy/JilJIUO!'M Finilf 1//IM FiN'm Bill (WII>hing'u,1. IX: C~n'<r"n 

lluo.1g" 1lI,cl l'Olit)· I'''""nos. Jul)' 200B •. hnc""' ~\'\\' RI>!!!>">!)!lo,n.<'igd,, 'tm .~v'''''&I~ .\ I') (""",,"sed Jul)' 13. 

1012): ""II C"",mw' tyR~...,,,,,,,,, l"ronn:ujOl'. -SN'AP Pood Strunl": Whs,Il~II"fi,~ Willi 0<," hlm ~I\\'II''' I\"S"'!rh ... ,>]); 'm1p:I>s:""fi" ktml ""<c.<c<l Jut) 11. 20121. 

" MlII1; Nord ar.J MIlfk 1""11. FO<JJ St«l"'I)' InI/>tVI'ffl PoJIGII'''gl/,,> 21)(19AIUU /'><:rMse ill S:"A!' &""J;I~ 

(1I1~ VA: U.S. D.:pal1ln<Jll Qr A~<uhUk. A"";12(11). blla'I""'"", ,;r;. ulOJ ,s\') nsd !2 ~1J qtl !~.Nf 

(acc''SSrd Jut) 11.2(11), 

''E.. 1:,1 ...... ";Ii Fili" .. ,.1Id Marl: !>Ir~l 'f. O"""';lrri.<lics<1S,,,I(1Ie,,,,,,uul N~'ri'i<>nA""$IU'tN' I'",g,.,,,, 

lImuelwl<ls Fill"'" rour .'0/0 (Alc'lUI\lri ... VA;U,S'. [}qmnmcm or A~<ull""'. s.."Ic",bo.:r 2(111). 21. 

hll p:/'''''''' . f""II'idJ.g<>. ""'~II''IIu1puhl ;sh<>l."'.pll' I t.1!.Sll'on i< i,""jont:!O I OC"",""",,"''' io.o.pd ({ oocoSbe<l J Illy Il. 

:W12~ 

6 
74 


dkrause on DSKHT7XVN1PROD with HEARING78762A.058

fI,,1t //I/Jlllhs IJ/lrllm'ilionlll belll:jilli "'gurJI .. 'i~· I}f illt~mle, TANF recipients whu an: 

leaving wdfarl' for IWIO: arc eligible to receive "trJnshiunal SNAP bo:-netilS" even if they 

no longer met'tthe income requirements. Th~ <llnount of their bo:-nefil's is based on the 

OlfIlount they m:ei\,.-d (or would hJye n:cciycd) in Iheir l,n31 month ofTANF. adjusll'd 

for the loss in TANF lncollle. ~· The 2002 Farm Bill e.xlcndcd Ihe number ot months of 

1r:1I1 sitional SNAP benefits from thrt...: to live. 

Cutt'gIJriml eligibility 10 ;'rCI}IIIe:.· /If zoo pltrt·It,,, I}fprwt'rl)\ Categorical eligibility tor 

SNAP was fir.;l ill1roduccd in Ihe ood Security Act of 1<;185. Rl'eipii."nrs o f the old AFDC 

prOgr~111. SSI, and st~ ll' general nssistarwe ptOgr:lIn~ lYeI\' made eligihle \0 reedYe rood 

slamps simply by v;nue of their being r~'l:ipi'''n1s oflhcs<' olher govcrnmcil! program:>. 

When T ANF replaced AFDC as Ihe cash wei fan: program oflhl.' United SIRleS in 1996. 

T ANF r~ciflient s were also I>il'l.'n c-.. tel>orical eligibility. 110w .... "~·t. bI.'i::wse T ANP mane} 

CQuid be used for man: than just cash assislance. it W8$ unclear who constituled a "TANF 

recipicnl.'· 

t:ligibililyfor II/Jll cil;~/'II ¥. The l'e!"SQnal ResponsibililY and Work OpPQnunit) 

Reooncili~lion Ael \ PRWORA) or 1996 made- nonciti ~~n.s ineligible 10 ~ccive SNAP 

bcnents. Tile 2002 Farm Billn:stored eligibility to legal rtOllcitizens "ho ~ I) have be ... n in 

tl1~ United Stales for five years. (2) arc under age eightf"l'n, or OJ reeeil''' disability 

bencnr$.'1 

In 2000, the USDA issued n.'gul~lions (l.'g~rding TANF categ,oric:lIl.'ligibility for SNAP 

th~1 allow siaies Ihc opliull ofconferrillg calegorical eligibility fur SNAP on a T ANF 

family if nt least one member oflhe family n:ceil'cs or is authorized to reccil'c TANFfunded cash ;l~sisIUUC.· ur ~nonass stanC ... ' ill As of J~nunry 20 1~. nvc SlaWs reslrict~-d 

categorical eligibility 10 Ihl.' n.'l:I.'ipt of cash assistance and fiyl.' stalt'S rl'Striel categorical 

eligibility to the receipt of c~h assistance or sped iie.:! nonDSslstallce stich as child care: 

th~ I'Cmain;ng fony stut~'S and D.C, confer cutcgorical eligibility thmugillhe r~cipt of 

either cash 3ssislarn:e or any non3ssislance provided using TANIO funds. including such 

minimal el ... ml.'nts as pumphlct~ describing benei,l programs. 

The SNAP n.·guI3Iions als.) impo5C a cap o f 200 percent of poven)' on income-digibility 

ror SNA P categorical eligibilITy ... slllblisrn,d by the r~cipt ofTANF non3Ssisrancc under 

"'u.s. 110\1'" QfRc-presrn13IiVl.'$, Cm~milltt u" W.),s ond 031". Baettro,,,,J ,\lim,la/,,,,il Dota "" ,ht! 

l'rogro" .. ,,.lIhf,, ,MJoJmd"·Iw.,l>{II,,, C""""I/lN'Of/ w"J"lI~d M~""sIWashi'~I""- DC, U.!>. Hr.use uf 

K"l'rd,,"'ot'''s, 200n Mp·,r.!sm«t!LI.wil'I3!l!lmO;!!IS h~UiC en, !!'<!llI!, ",,('1 "~I"N ]'>dt(""~tsS< d Jut .... tJ, 2(!12) 

"u.s. Ikpol<1mc'll' of t<1!'k~lmr~. S,oppI'''''''''1fI1 Nfdrillo" A.sIJrl)...-t /'rognu.,; G~i<""k'" (m M:w-CII&: " 

£liglbillly(Altxondria. VA: US. U'p4rl"'<n' of A~c!lhu",. June 1tJI J). 

hllp :l"'w" .fn~.u~o.s"" ,,,,,pI~m .mn"'ntlpdfIN1ln ·rlti%<fj _ Ouldancc _(16,0 II pJf(IX~O<S<d SUb 13. :!012). 

"Tt<NF 1",,\ ... i"~Jl<"coal ' i""I"'\c"""·<I'''''!TC111. r"mtl .!On bc""r.IS, child "are, ""'''1'<'''''''00 and "''''\.; 

",bsiJi ... "'"'0 ca"led i""""", lax <1\.'\1;". ",,<I rooUlSC.' li llg. 

1 
75 


dkrause on DSKHT7XVN1PROD with HEARING78762A.059

pllrpo~S Ihri'e and four ofTANF (to previ'1l1 and ,edu~e Iht incidi'flCi' of out-of-\\'i'dIOd 

pregnancies and to encourage Ihe fonmuion and maimenance oftwo-parcnl families). 

The SNA P q~ulalions do n01 il11pose an ineomi' eligibility cap for T ANF pLtrpoS<'~ one 

and IWO (pfOvide asSislancc to ne~-dy families and reduce the dependence of n~""dy 

families by prol11otingjob preparll1ion. work and maTTia.ge). bLllall stales lhm confer 

TANF through mmassi,tJoce hiLv<' iL1 titul~d unt'o As of January 20 12, Ihirt ~en ufdlt's<' 

~tatl"5 had ~I their gross i!!Com\." cnps to JJQ pcr .... :nl orrowrty; Ihe remaining twentySt'ven SIOICS ond D.C. hove gros.~ income. caps higher Ihan 130 p.:rcent but no more tball 

200 pt'rct'nt of poverty.!.! 

Thc fori'going conelusions arc widely shared by careful observers oflhe program. A 

USDA report ~"()mes 10 a similar conclusion: 

TIlc inerease in SNA P panicipants sinet 2001 coincided wilh expansions in SNAP 

eligibility, such us Ihe relu~mion ()f vehicle rulc.~. the re~H)Mion of eligibility for many 

kgal noncilizcns. mId Ihe l'xpansions in calegorical eligibility as well as outreach d lons 

promoted by FNS. From 2001 to 2003. Ihe inc rease also coinciMd wilh a rise in Ihe 

uoc!nployment r"~le and a weakeninJ; eeonomy flable 2. J). FrPm 2064 to 2006, even 

thOl!gh Ih~cconol11Y improvcd. PIInicipalion continuoolo grow as eligibility expanded. 

In panicular, 01) Q.::lobc( 1,2003, all legal i.mntiSr:1.OI childrcn became eligible fot SNAP 

In nddition, Sbl~S continued to reJa~ vehicle rule, and e~p.~nd categoricul eligibility. 

From 2007 10 2010. panieipation cOl1linul-d 10 grow as Ihe economy wl'akened and thl' 

uncmploymem rule began to risc again. The number ofSNA P panicipantS continued 10 

rise during fiscnl yem2011, rencbing45.1 million in June 20 11. 

At tltt: samc lim~., two other factol"$ that likely contributed to the sizeable rise ill 

panicipalion were the iocrease in ma~imum iJ.;,nefil allQtmentS undu ARRA in April 

2009 lind the increase in the number of Stotes odnpting BBCE [brond-b."l.'ICd categorical 

digibilityl policies. The percentage uf eligible individuals chOOsing to pal1il·ipalt in 

SNAP also fQSC from 54.1 P<'n:cnT in fiscal yenr 2002 10 12.2 percent in fiscal yc;Lr 2009, 

TO\al SNAP COSIS inc!\.'3sed from $53.6 billion in fiscal ycar 2009 10 $68.3 billion in 

fiscal year 1010, largely as 3 rc~uh oflhe inl"rt.'asc in SNAP panidpanu; and the annllal 

increase i.n rna~jm"m alIOlmi.'ol$, which "ere driv~t) by Ihe inc,",,(\$<' in lhe TFI'.'"' 

" OcO<.' falk ond Rl!r.ly A. AUS"""''''''l!. n,., S"l¥I~~m,1J .v"lril;':"' __ h,i$IO'k·~ 1'roj;J_: C"I~lYH"it,,1 

£1i/libililytWashlngk"lfl.. DC: l"~i""lll R~h S ... lce. M=h 011~ 

hup;/t...""',ffi!tlOO3lm;" ~ ... "Unl • .,. !Ki:'H>,,"I ler:< IIA 11 ~4 Mftact~ July (~ "012). 

"E.. I:.lami. Ka; l'ilioo. oM ~I:ttlt SID)·"". Clw,",,"'''i>,kxofS''f!P/''''Mwl N"lrl1'QII.4s.'"'''''''' Progrom 

lImlCie/wl</s. F;IIl..,,1 Y.,,,. 2MO (Ak>u,>dri .. VA: U.S. rx"..,tn"'''I"r Al:rie~l(u",. Soptem"", WI II. 10_11. 

hit p:/I\\"" . fn'.II!idJ.!!.".r .... " ""11'" publ ish.."<IilIn'I>lFlI.ESII'IlII ie ip,,,;, lw.!O I OChlmel ... i."i c •. pdf (0<0<."SSCt! Ju I), !). 

:W12 ~ 

• 
76 


dkrause on DSKHT7XVN1PROD with HEARING78762A.060

WIC 

The e.~~ri~nl·e under \VIC of loosening the' application of eligibility ruks is similar, 

Acoording to calculations by Douglas Call and nil', modllications in lhc \VIC progrorn 

suDsJ.antinlly increased Iht estimmcd number of \VIC digibles. Across all cale'!,!oric;; of \VIC 

eligibles. the ~rcj..11t of the fe'leV:\I11 U.S. population eslimatl'd 10 be eHgibk for WIC ;n1oo3 

rose from aboul 33 pcrc~nl to 3boul 54 ~fj..'cnl. Tht: proportion of digib)';' infanls ro>c from 

about 40 ~rcent to about 63 perce lit; tor children, it Illcr=d from about 31 percent 10 nbom 53 

pcrcenl: and for pre!;nanl and postpartum WOlllen, it ;l1e'~ao>t.'d from about 34 pt'rc~nllO abuut 49 

pcrct:nL" 

Iglwri//I; Ifll! iJl( "'l· II/"'fl t. ,~ ill tflt JW14l'efli/lil. To d~lcrmine inC1lnw eligibility. \VIC 

agencies are suppostxl tu counllht: illwmc oflhe CTllirc household- ifil is shan.x1, Many 

agcncics do not do so. however. ami instcad oount the income of only the nudcltf f.1Il1ily, 

lc3ving oUI olher StlUrcCS ufhlluschQld income-for example, from gr:tndpan:nL~. 

siblings, and boyfriends. Thc lililun: 10 count all of the houschold's iooom ... can. by itself, 

expand digibility o\'cr the b.'lSC.' of those with annual incomes below 185 percent of 

poverty by about 20 per.:ell!.'" 

Chlw.~il/g the tillle period ... itl, tf, .. llIli·est iI/cOllif'. Beeallse incomes run rise and fall 

tllroughoulthc y~,Lr, \VIC ~gendcs ~re allowed 10 chooS<! ,lInong anllllal, mOl1lhly. (IT 

weekly income. USDA rcgul3liolls 31lQII' (but do nOI nl3nd3lc) stmcs to r.:quire that 

agencit:s select the period tlmt '"more accurately refl~'Cts th .. family'$ statuS."l' (The one 

t:~ception, Md it is substanlinl, is lower currenl income caused b) unemploymenti' 

Most \VIC agencie., however. simply S\.'O:m to IISl' tile lo\\'e~t incOl11e. whichever il is, in 

order 10 lIlax.imizc eligibility. 111;5 failure to IISC Ih~ lIlosl 3ppTOp'rimc in<''<llllc period can, 

" In a, .. rlkf<:Sl;mIllC ba>ed ","Similar bu1 II\)] ldont;CIIllI\I]ullI""nl!l. B;II~, Currie, ~OO g.,boll ~in"'lc 

Ih~I.;n lQ<,S. appnlKlmal~ly S8 I"'IWIll "finl""tJ;.. ~4 pcn:~nt O(1"'1!1IlI01 and 1"'>ll'Ilnum v.omen. anJ 51 pcn:ent 01 

chlldmllag'" one ") the) , .. ,.ro "I~;I>I . foJr WIC in • lOi '·on """,lb. MIUiruw: I'. lIillcr, J"'O:L Currie. and 101m Ku.t 

Scllolz. "WIC I;tlSibilitrand 1'..,1<iI'"IIOI1," ./(m",01 o/Ihl""'" R~sllll'"Ce 3~. no.4/Septomb<r 20031: 113Q-1 179. 

hlLr :!I"<b.~b:;c~I.<~]lr>Ilr!'ld 3&bid;O.j \i "<ld4~ 1 .Q3-.c6l>t>-41l>t>-t>d9d·.~607SI~~ffl~~""msrl 0 

ll.c.."t!I$<J (),;Iobe. 13. 20(181. 

»rIIi. i~ an iod~I>\. ... d<:nI .n"o<:1. gild c~"lcl w ""all("J "hen I"'~,':"I in "',mbirulli"" ",Ih Ih. <xhc( f'I'I''''k~~ 

di><:lW<"d in 'his [l<IpCf. 

"u.s. lkp.111>U("J,l of "gricu llL~e.. t ood """ Nuuillon Sff\'''o. -\VIC f'rotnull R'f,ul'lim,,,,- C/Xkor 

f~".·"" ~g"IOI{o~~. ,ille 7. sc". "2~6. 7(cl~2I(i). (20117): J3!. 

hup~I \\w\\'.fn •. u.<d:l.I:p. ,",'<lI~",~ulmicns WttR'1lul:lliun<-ln R246.pdf(3I...,,,,, .. d Jul)' lb. 2lK11 J. 

" s .. U.S. Dop.vtmorn of Agrk"ltur~. Food aooNIIIl'li"" S.'n ice.. "WIC l'rogrwn R.~ulall""'." C",t,. <Q 

F~,~ r(li R~ii''',~iO~$. lille 7. So.,<. 2~6.7(cl~2 }( ). (20081: 354. 

htlr :!l"w" Jil'u>oJa.govMtlk1WW1<1",,"laliOn.<I \\'IC~lotion>-7(TR246.pdr ("<."""'''' July HI, (~18~ 51:011 "11: 

-llo",,",'.r. p..'fSOIIoJ fh'loo, far"ili ... "ilh nJo"ll ",embom. \\110 a", u/lCmplo)oosbatt Ix .1l1!ihJ~ ~'d on irn:on", Juri"1I 

III< pm"" Munempk>ynlOnl if Ill< I""" ofine""", .'UU>CS II", curnnt ral~ ofinromc 10 N-I~ lhon Ihe SIal. <)11""",1 

1I8Crn:)'~ ino"",", 1!lIi~cllne. Or l'rosmm otlgibitiIY." 

, 
77 


dkrause on DSKHT7XVN1PROD with HEARING78762A.061

by ilself, e~rand eligibilily over lhe baJ;e of those with an~l.l!Il iocmnl:s below 185 ~n: .. r\l 

of poverT)' by ~bou120 perccnt.'" 

Verijj'illK i/lco /lle l!IiKibililJ' 01.1)' ,}lice II yellr. Onc,", fouod incoo1<: ..... ligible. succtisful 

applicaJl1s do 1\01 have lheir income C'tigibilily recertified for six months or mon: (up 10 

onc year ror infant!ir<-ven i(incomes rise during Ih:ll "cl'rT ilierllion period" which 

would ntake tl1cm ulhl'rwisc ineligibi<:. WIC's 5i:<.- aud tWl:lve-mQluh cl:rTification 

periods can, by lhcm~h C"S. c:<'PIlnd eligibility o\"er th ... baS(.' of thoM' with annual incomes 

beluw 185 percent nfpoveny oy as mudl as 30 percl'll t. ' 

CfJfeg<lricll/ tdigibilify for ; .... "mrs lip /0 ;00 peN.·"'" of f'U,·trl)· or high"', As wiCh 

SNAP, eligibility ror \VIC is also cst9blished eU1l:gorically; loat is, it is aulommically 

grJlllcd to mL'mbcrs of thmiliL'S who are I"\:eeivillg" SNAI', Medil'aid, or TANF (ifilley 

can "provide docunw1\Iatiol] or J'\."I;ci pl Of as~islanCc'·)." Whcn this provision "as add~-d 

to the law. income eligibility r..,r these programs was SCI below 11\5 percent ofpoveny. 

Hen ...... , th ... ()rigillal pllrpoS<' of cmL'gorical digibi lily was ROt to ~'xpnnd eligibility, bllt 

simply 10 facililatc!.he enrollment process. HOwever, rcccnl exp~l1sioHS of Medkaid and 

SCHIP-fonded Medicaid cxpansions have bcguI110 mise income limits for those 

prng.rnms \() as high as 3(}() percen1 of ptll'erTy, m;lking c3tcgorical eligibilily a potential 

source or5ubSl~ntially gri:atef WIC eligibility. Under current Medicaid eligibility rules, 

categ.orical eligibility "nn. by i!Self, I!.'(pand eligibility over the baS(.' oflhosc with annual 

incomt's below 185 c(.'nt ufpov(.'rTy by as mu"h as 35 ~~cnt. And, barring legislative 

change, there is no lilllil 10 how Illuch \VIC eligibility can e.'(PIlnd-via furth,'r 

expansions of Medicaid and SCI·IIP. 

""l1i~· is .., ;"dcp"!nl,'nl "n""l. anol cQIlIJ IX' ~'.Il .... ..-lIon rftwnt in c"mbin~liOl1 "ilo the ()It\<"! f"l'CticC$ 

di:.t...s<J in tltis pIOpI't. 

"ni, i •• " i!)ol<:j ... ~,dc",' ~tT""l. ""d c"uld be .. nail ... "hen 1"'"""'" in """,bin .. i .. , \\i,h IIH: od,cr pnoclic"" 

di,cuss<d in !hi. (IIp<r. 

" AI'WlJlll ..... .,n'Ule US<.~ d,. w<l<"d ··rtod, ing." 1'0'1(" ",~"lall on~ dn TI<'I "'<lui", "1'I'Iic~n!.s ,,, 1I>:Iuaily re 

r<:<:('lving """>!""CO.IIS Ions-d' the)' h~,c I>ee" """nWed ell~ h"'lo ",c~r'e usj,,:Hlo."<1·· ur.der IIH: rrovomi.. US. IHrenmcnto>f Agrkullunl. F<>Od and Nutrition !>e"lee. "Wle l'rOjpt1nl R"1!"I~li fll1l'.." C!Xk<){F~(4· .. ~1 R~g."atioll$. 

"tlc 7. ,;c~. 2~6. 7 (2007). hllp:ll,n\'" .fJl5.I!!Id •. ¥oYlWi<lIa"S1\noIro:t> "I ~ti()lIS ICRc~ulali""J- 7CFR246.pdI' \,,"~<>o:d 

lUll<" 25. 20(7). '1"11< c"n;r."~tion is maJ. b} III< FoodSI.."p. TANF. or ~t.><IIc.JJ prog"lIns. 001 WIC. Zot 

Ncubcrl!cr. Cc.."te," M 6~eI .nd rt'lic~ rriorili~ e-mJII m~ 10 sulhor. l"n~ 2~. 2007. f'n:su",a~I}. Ihe 

dm."""",, is "" minim"" o"d mo.ll rc:sear<"l>en oslimalc ,'''lell''''''c,,] cli~ibm ' on IIH: baSIS of bein8- "enrolled in" {Of 

t;..:in~ "panitipwlls" in III< tOOd lta",p. MNk.id. orTANf prog .... "s. s.,., ~lkl"'lc Vcr rl"" ~ <IIId Do,id Il<1SOO . • Js ~ £'II/lJ~li"J!. £11...~ibilily,I/l" f'i.Jllic;p..,II'",jiJrth<, W/C P'<;j;",m: F; • ..:;/ R~pW"IIWosh"~IQI" IX': Naliooiol Academies 1'rt5S. 2001}. 50: MlLrilnO< Bille, aI\d Jan.>1 Currie. ".\.1cditaiJ ~I [lirtl~ WIC ~k"'lf", 1InJ Child",n', 

OlDC"",,,," (di<;<1($si"'lI"'PC"r. IIUlitUlc tho' R=h £m I'(,..",,}. Unlvcr.sil) "rWitc"",s;'l·.\.1J1diloo. MaJiliOO. WI. 

A,,>"-usl 200(1). 2. hllr=JfI.\\ V. .j 'l'\\ i>< .• ><I" 'publi".,i(lru.ldpSl('df'-'<lp l1t6().t.pdf (ac.,,»N JUne 25. Jotl71. 

" Child NUlrll!"" .-1,1 <if 19M. os ~01"rnkd lhrot't>/1I~iblk l..aw 1119 S. 10000C""g .. tst!iC8:l. (Octob.:r4. :!otlS~ M"C. 17(d). hllll:lIBJriC .. lh"" .• ,.""a\e.8",II •• gj,l," onl(' ",pil.'ioo,y'~·"'SICN ... (.().pdr (.'''· ...... d II"'" 25. 2(07) 

!O 
78 


dkrause on DSKHT7XVN1PROD with HEARING78762A.062

Nutritiortal risk n"llllcti. In addition 10 bo • .'ing incollle-eligible or categorically t:ligible, 

WIC applicants ,ITe supposed to b<o II! "nutritional risk.~ It nppc.'aJ'S, hO\\'ev~r, that this 

provision has lillie pl'll(:tical impacl Ull eligibility delemlinulioll5. In a I"idely n(lted 

prJcticc, WIC agencies find almosl all 3pplicants to be at nutritional risk. " In 2005, the 

Food and Nlltrition Services issued WIC Polic)' M<'mornndullI 98-9. Revision 8 which 

redun-d the Ilumber or dietary risk criteria fronl nineteen In five aoo pml'ided ddinitiuns 

for .... ach oflh .... livc criteria. Mosl (mportHllll)" in accordan .... c wilh Ihl' l'C<.'<Jmlllcnd3lion 

from the IOM's 2002 repon, FNS included "presumed dietary risk" as a pan ofthc 

criteriol1 "Fnilure to Meel Diellll)' Gllide/illes/or Amerieu,,~." This criterion indkates 

Ih3t "wol11<'n and children two y~ars OfHgC' and old,'r who tlle<'llhC' digibility 

r..--quir~mcnts of in eo me, C'atC'gorieaJ, and residency status may be presumed to be- at 

nutritional risk.")' This criterion \\'as 'Idopled in nccurdJnce with Ihe findil\!l.-~ of the 10M 

Ihat "nearly all U.S. \"om~n and children usua lly consume few .... r lhan Ihe recomrnendl"<l 

numb<-r of ~rI'inJ;~ spt'Citil.'d by the Food Guide Pyramid and. Ihcrciorc, \\'ould be III 

diet.1ry risk buSC'd on the I.·riterionfililllre 10 ,/,,,,,1 DierlllJ' GIli(k1illi!s:' 'Tlle failure 10 

assess actual nutritional risk can. by itsc!r, expand eligibility by as much as 2j percent.'" 

As I mentionl'd above, mAOy ~~ th('$e cXp."lllsions!lS I()n~ ol-'erdue increases in aId 10 

low-in .... ome Am .... ricuns. bUI [do not think Ihal is the point. Token sepamtely, il W'~5 difficult 10 

predict how large an impacllhcy would have on "nrollm"m and spcndillg.-or on Ill,' horizontal 

inequity and work disinccnli,'CS Ill:\! ol1en res ult. Senior policy makers should have rnor.:- control 

over suoh significanllx'nefilaJlocutioll d~'Cisions. 

The use of mooern k'chnolog), could enable us 10 do betiCI'. Firs!. a runy 3ulomak-d 

system uf incornl.' rcpor1in~ and eligibility calculation would reduce 13hhou~1l nOI eliminate) the 

discretillll that ~strtet·l l'vel bureauerats" twvc to slretch the nIles. Sec(md. uch automaled 

systems contain Ihe program modeling louis that would haw enabled llS to predict the individual 

'; hllflitUb!"ofModfclno, ~ldryRi;k A ..... ,.,. ... " /11 I~ W!C f'r(>grm~ /Ws,hln8lO1l. 1)(': N~lion~1 

A~!ld.:lni.:J f'ross.loon tll, ".llng: -t'n:>unu' lhallil "'''nl<l1 IIIId ~hildr<n og"" 1.10 5 ).ars ,,110 m..,1 TIIiI 

.Iiilbllily ",qui",menlS or Inco",,,, ""'o:gorkal WId "",;'k'll,,) Sial", also 1""-'1 lho ""IUiremenl "r nutriTion risk 

llvoogh tl>< C'I~"'Y di~al) ' ri>1; I>.i.o;"d Qn,fo,'/.".IO ," ~," DieklryGujokll,~s, "me/aU"". k> urnl Did'~· 

G"id.!U"" Is defined lIS c<onsumins r""~r 1""-" tho ""-'Ornmc~>do:d numb<r of""I"i1l/l:' rn)," """ or ll)onH'f ll,~ Ii." 

bask food p<>Up<! IS"';ns. fruilS. "cgotabl,'S, milk proJ1I<1j.; <Ind ""'al or beans) b/ol.ctJ <>I, ..., lndivld ... l' ~ (-Stihl.IN 

.""'S:- ne.ods.." 

"u.S. lkf'lUlmenl of All,Jiou\l1." ... h>Q<l ond t-I,~rili"" !knit •. "\VtC Pulic'), MOtn<>I'aIldnm 98-9. 11,,,,·i,;,,,, 

8: 40t roil"", Iq ~k'" D;C1.<Irj (;.i<l<li"" r.". Amonc;m'" I.x.ncln~. VII.: tiSDA. ~l a"'hZOOS ~ I 

"ti.S. I><parIln..'I1' of Agncu l(urc, I ood :tnd NllIntion Scr\·i ••. -W 1(' Puli,) Mc..,mr,llIdUl1' 'JlI-'l. lie, "ion 

8: 40\ F.illll"'-.IO M~I Dl,,~ (\"10.1,,,. for An"'ricans~ /AlcxMdria. VA: I.ISD,\. ~1an:h 1.00H 2. 

'"fhfs is "" Incl"~l dTw.1UId .oo)J b.! .. n. l~r "~n pn::IeI1lln ,,,,,,binadon Wilh llleOlho, pnI<1k"" 

clis<uss:ed in IM$ pap.:r. 

" 
79 


dkrause on DSKHT7XVN1PROD with HEARING78762A.063

and eol!t'(:!,ve Impac! M!h" ~ario"s Il'gislative lind !ldmini lratj~1' changes that so e~panded 

enrollment on programs like SNAP. WK, and SSDlfSS I. 

I nlenlioned in opening th~1 I lead II project on eros5-!lational studies of social policy 

issues. In Ihm project. we have been followi ng devclopmem of the UK's "Uni versal Credit." II 

illustmlcs the promi;;e ofharol'S5iug te.:lllllllogy to eligibility and award·selling dctcrmill~ ion . 

The crt;<uion ofm.: Universal Credillakes ~dvnlllagc ofll simplified payroll repor1ing 

system Ihat Ihl' UK will implement nalionwide in 201 3. UK emplo)'l'rs :Ire required 10 withhold 

cmploycl'S' iJICome la ~es <lnd Nalionallnsumnce axe~ and submit those lUxes 10 the nationa l 

governmenl each month. Althc end orlhe year, Her Majesty's Rl'v~nuc and Cusloms (HMRC) 

C'oIlculales the :lmOUl1t of la~ owed WI"SUS the ;lmoUltL Oft:1K p,lid for !o'aeh individual and then 

eilher issues a tax bill Of refund. (111is clld-of-Yl'ar process is calktl ·' rcconeilimion." '~ 

The I IMRC is currcn!ly piloting a ncw p3)'roll ~)'S tC!l\ cnlled the Rwl·Thne Iniomlution 

(RTI) system that links with employer payroll sofTware to 3U\ommically tmnsfcr employee 

payroll inlo rnlalion and tnXes eaeh pay period (either bi·\ ... ~ckl)' or monlhly). In 20 13. all 

employ~'T5 will be requirt.-d 10 rcpor1 a the R1'I. The Dep;lrtnlent of Work and Pensions will link 

h~ p3)'roll infommtion from the RTI to the niv~n;31 Cn:dil sY$ll'm to automalieally calculate 

th~ amOullt o f ebimilnlS' UC b<'oefit~ \I'hep employers BUtOl\liltic:llly submit mOnthly e:unin!!;S_ 

(Claimants are olso required to report any uddition .. 1 income.)" 

The model, ofcourw, ~ not directly trlln:;plantabl ... 10 th~ milch larger and dl"e~ U.S. 

economy. but the possibilities opened by Ihis kind oftechno!ogy are lunlllliz ing. 

A not-so-sccondary ix'rmtit oflhc "Univel"Sal Credit" is thai it will ,,'{)rnbino tax credits, 

sOi'!l3l assistilJ1CI' (inclUding bendilS for the ro,,·in~ me unemployed), disahiJity bl:nefil~, and 

housing credits into <I ,<ingfr benefil. This will creale 0 single phase-{lut mte for hcnefits, reduc e 

the high lIl;lrginalta>l rnw fur low-incollll' workcrs. and eliminate the duplication and complexity 

ofprC" iously exiSling bene"l progrums. The govern"'enl tjrnalc s thaI combining Ihese 

programs will creme II margin~1 tax mIl' of65 perccnl.)O lower nnd more str3ightibnVllrd Iha nlh~ 

current yst~m. First pa m~nts under th~ Universa l Credil progl"Jm will bt'gin in 1013. 

The U.S. hll' a similar prob!~m wilh high marginal tn~ rotes under muny rneans-te,lcd 

"O"""red Inshlurc uf1""a';<lO. " PA YI, R«o"",ti~~oo: Q...,.,ioll> ""d .t\J!S"' ..... " 

hUrW\'~'~' lj,X,£",p#lnt<h •• nrn·Il>I(!I'I' f<bn,ruVI'A),f .. Q~ """d;~d JWl 16. 2{!1~) . 

"Departm<1ll. tOr WorI; ar>d 1'en>11H>'. UniwrsQ/ CH<lit: W<//iin I"al w~'*. fl.CJIkli)n: lkparuroo"l lilI' Wos~ 

GnJ 1'.'11>;00;. 10101. hll!>'I,'WW\l dwc g,"" "~ '''''' ylUli''!'$IHmn r,,\J:9<'CU!r.nl.Mqac~~~ lUi) 16.20121. 

'iJ<'fl'IfI',"cnl fC)( W,>fk ",~II .",i(1M . Uni,-.r:w/ C",,/i,: It'~Iforf! n"" W,,,,*, (I.oo<lon: Ik'flO""IOf1\ ( .... 

w,'"' ond 1'""'"00'. 20101. hUI),I'"" l1,dwC.I,'f1v.uI./dg<""l'i, fNPI:J.'I'-'(\jHj'lh!!l!:l,mrn! pdf i"""'<lIS<J MIY 20. 

"011 1000 f.ltl",n""" " for W",k;o.nd """. iooo..'1" C~~""'J' /fou (1.<"""",: tkp;ltlm<'nt (or Work;o.nd I'.",i"" •. "(10). (orlo:I,",,"\\"\\ ,11,,1','''' 'I'~ '~ 1!;,~ ! 1!!!"5,n",,' ·"rt(~<S:_!l!lr (oc~ ... ,C1l Jul) S. 201 I J. 
80 

f 


dkrause on DSKHT7XVN1PROD with HEARING78762A.064

gOllenll11erl( ~nefjts \especi3lly 95 Ihey interncH- "hieh treale subSlaJUial disil'lc<:ntilles for 

low-income Ameri cans (0 work. 551 recipients, for el(Ample, hnve thcir first 565 in earnings 

disregarded bUI thcn los<: 50 c .. m5 in benefits for ~ilCh addition~ 1 dollar c~mcd ulltilthe ir 

earnings c)(c .. ed the maximum aUow .. d amount. 

Considering ail the progrnms for which H family could be ciigibk (T /lNF. SNAI', Ihl' 

EITC, UI, child care. hOllsing bcndiu,:. 31ld h<'3llh bc\ldjlS), Ad~m CarnSW and EUgCllC Slcuerie 

of the: Urban Instilutc e!;lilllnic th31. in 2005, the ullemgc marginall1l}\ rate for households 

making bctw~n $10,0(}() and $40.000 WllS about 89 p"rcell(.~' That is an adm;u .. dly Cl(Irt.'m .. 

case, but consider Ihe much more likely possibility: according 10 Olkr Urb.ln Institute 

rcscarchef5. ifll mother working tw.::my OOUf5 a week in.::reased her houf5 to thirty· five hours a 

week (10 all allnual income ofaround $1 3,0(0). her in('()111C would incTI",JSc by only 20 pen~nt 

becaust o f contspondin{! dcdillCS in I:o\'cmmenl b.:ndiLS.' > 

t\ S Ihe UK·s new Ullivcrsul Credit program illustrates. mod~m Ic ~hnol()g,v holds Ihe key 

10 llntanglingand rationalizing marginalIa;.; rntes-so Ih"lthey an: less of~n obsta~lc 10 

cncournging recipients to work. 

Before ~Iosing, J want to congratulate [his subcoillmillec for its bipartisan a~hic~cmenlS 

in the area of data standardi-.ration. Without the progress that has re~dy been maclc-nn<l l 

hope. will be mad~'-mQdem t~chnology canllot e;I.~ily achieve its promise II> re~mlil1e systems. 

The prOct:ss of dam st~lldardil:al ion bcglill by this slIbcommille.: will gremly f~cililBlc the 

implelllenJalion of aUlomalCd cross·progrnm eligibility ~nd Pl,Ylllcnt systems.l1)c coming }'caf5. 

I ~rIl sure, will Sl.~ th.., fruit oflhi 5 lillldamciltal wurk 

l'Imnk you. 

"'''dI", C._~r.d Ellfone Sle .. etlo. TI,..l/r!il' f''' ''''fI''~' .II""''''l~ F""'''Il'\/ulI).I/OIlulllJld''''·i,h 

t'MJ,.." t\\,..rung,on. DC: Urn ... h"lilU1~, l00S1. 

hup:llf uuu',..,fchlldrcn.orgi fU"'rtQ f"hi Id ...... lpu hl;o,,;on~ do<"' t 5_ OJ ~ (!\I.pdf (B«e"",d J uno I iI. l(ll n 

·'Gn.1l<":" """' NMTl. Coo. Keith \\'aIWfl.:oM Roben L L.'rman. Dou W""'l'oy.' tM ,j' ~II."./SQj ''''' Ji'<lI'i 

Io ...... mh ... U"Jdli1Nf' \ \\'1!ShinIlIOtL IX': liman tlWillne. 19'1h I1n"· ..... "'''' ,>!'tI!!/vull'OI'/'!j;C!I'J.Nt 1"''C<'>Md 

June!2.1ot21. 
81 

Chairman DAVIS. The trend in some means-tested programs like 

food stamps has been to waive complex eligibility rules, especially 

asset tests, in order to speed eligibility determination and expand 

benefit receipt. In the manufacturing world that I grew up in, in 

business, we call that expediting, where you step aside from established processes and rules, and in the long run you can actually 

create more cost. And thus, the more you process, the higher your 

cost per item until it completely flips the cost structure upside 

down on what we call customer service or the equivalent of a banking transaction. 

States, especially when spending Federal, not State, dollars, 

seem less interested in making the administrative effort needed to 

effectively verify income and asset levels, thus suggesting they 

need a stake in this game as well. But as a result, today one in 

seven Americans is eligible for food stamps at a cost of over $70 

billion in 2011, three times what it was in 2002 when the asset test 

was more consistently applied. 

Listening to all of your testimony today, it appears technology solutions exist to overcome these administrative barriers, or islands 

of excellence in various parts of government and out in the State, 

but not connected in an integrated manner yet. For asset 

verification under AFI, banks are responding in an average of 7 

days, with more than a quarter reporting back in 24 hours, which 

is a big step forward. Meanwhile, the United Kingdom is moving 

to a system with real-time wage data. 

Mr. Soczynski or Mr. Besharov, are any of the issues and solutions we have talked about today unique to the SSI program versus 

other programs? Go ahead, Mr. Soczynski. 

Mr. SOCZYNSKI. No, actually they are not. And I think that is 

the applicability of the Medicaid solution in similar environments. 

The connection between the government agency and the financial 

institutions to share that account balance information is applicable 

and transferable to other such programs. 

Chairman DAVIS. Mr. Besharov. 

Mr. BESHAROV. I think that is right. I agree. The one thing I 

would add to that is something that you mentioned, Mr. Davis, and 

that is the fact that States share in the cost of eligibility and administration, but not in the cost of the actual program. That is a 

formula to encourage cutting back on eligibility determination. Not 

only does the State save money that way, but easier eligibility 

brings more money into the State. 

One thing I would like to also mention, since these rules are different across programs, TANF to food stamps to disability, and 

other programs as well, (housing), you incentivize States to game 

the system. Many people wonder why the TANF program hasn’t 

grown in this time of economic difficulty. There are many reasons; 

who is affected, unemployment rates, and so forth. But I think one 

very big reason is States pay all of TANF costs. They pay none of 

food stamps cost. And so why should we be surprised if the food 

stamp caseload has gone up and the TANF caseload has not? And 

the same for the disability caseload. So these incentives that are 

built into the system create distortions that we should all be uncomfortable with. 


dkrause on DSKHT7XVN1PROD with HEARING
82 

Chairman DAVIS. Ms. Colvin and/or Mr. O’Carroll, in your interactions with other agencies, do you see the same types of issues? 

In fact, have any other agencies approached you, or have you 

shared your experience with others in terms of trying to streamline 

the integration of processes? 

Ms. COLVIN. I have found that there is a very strong interest 

among other agencies. Let me speak first to the State level, though, 

because I came out of the State. I administered all of the meanstested programs at the State level. 

The States are very interested in innovation and creativity. They 

are interested in automation. For them it has been a big resource 

issue. Unlike at the Federal level, where you have one agency administering the program, many of these programs are administered 

at the local level in addition to the State. 

But at the Federal level, we have a Benefits Processing Work 

Group. We have presented AFI to them. They are very interested. 

I think the standardization of data that you are proposing will be 

helpful. 

But we have been working with most of the benefit-paying agencies like VA and CMS and the Office of Child Support Enforcement. And there is a very strong interest, and we are continuing 

to work with them in that regard. 

Chairman DAVIS. Mr. O’Carroll. 

Mr. O’CARROLL. Mr. Chairman, I agree that working with the 

other departments and other agencies on this is very important, 

and woven into this are the matching agreements between all the 

agencies. 

We can’t compare data with other agencies that are doing the 

same type of work that we are doing, trying to identify income and 

wages and other information. We can’t do that without a matching 

agreement. It takes years, and usually by the time we get the 

agreement, the issue is over. So anything you can do to help us in 

terms of getting access to data without computer-matching agreements between Federal agencies to identify improper payments will 

be very helpful. 

Chairman DAVIS. Thank you very much. 

Mr. Doggett, you are recognized for 5 minutes. 

Mr. DOGGETT. Thank you, Mr. Chairman, and thanks to all of 

our witnesses. 

Commissioner, let me ask you, I referenced in my opening statement this proposal that has been approved in an Appropriations 

Subcommittee to cut the billion dollars from what the President 

proposed for the Social Security Administration. What is the impact of that on your efforts to reduce waste, fraud and abuse, and 

on all of your program integrity activities? 

Ms. COLVIN. Let me just summarize what the impact is going 

to be for us. There is going to be a severe impact within the agency. 

I don’t have the specifics under the proposal, but it should be recognized that we had significant cuts in 2011 and 2012. As you know, 

we have had to close offices and reduce office hours. We have had 

a hiring freeze on. We have lost about 7,000 employees over the 2 

years, and we are making other draconian cuts. We would have 

similar experiences under this bill. 


dkrause on DSKHT7XVN1PROD with HEARING
83 

There is also going to be a significant reduction in our program 

integrity dollars. We have indicated that we already see a return 

of $9 for every $1 with our continuing disability reviews, and $6 

saved for every $1 spent with our redeterminations. The bill significantly reduces the amount of funding that would be available for 

that work, reducing it from $756 million in fiscal year 2012 to $272 

million in 2013. So that is going to be a significant reduction in our 

ability to do program integrity work. 

But more importantly, the service to the public is going to take 

longer. It is not going to be the quality that we have been able to 

provide in the past. I don’t have at this time specifics relative to 

this proposal, but you can conclude that the impacts will be very 

similar, if not even worse. 

Mr. DOGGETT. We had the Social Security Commissioner himself at the Social Security Subcommittee the other day talking 

about the impact this would have on disability determinations; for 

example, where we have big backlogs and delays already that the 

Social Security Administration had been working to try to reduce, 

that now, without adequate resources, there will not be the quality 

of service. 

You actually have already, as you mentioned, had to close some 

offices. And we can foresee more of that type of thing if you don’t 

have the money to deliver the service. And this is coming from 

some of the same type of people that are always talking about 

waste, fraud and abuse, and yet the resources needed to ensure we 

don’t have waste, fraud and abuse are being denied to the Administration, which I think is a very significant shortcoming. 

Thank you for your testimony. 

Ms. Ford, I would like to ask you about another program that I 

mentioned in my opening statement, and that is the Work Incentives Planning and Assistance program that is about to expire. 

Would you review the type of assistance it provides and comment 

on if it is not renewed, what the effect will be on those who rely 

on it. 

Ms. FORD. Yes, thank you. 

The grants from the WIPA, or Work Incentives Planning and Assistance, go to local nonprofit and other agencies to support outreach, education, and benefits-planning services for people who are 

using SSI or the disability benefits under Title II about work incentives and supports for finding, maintaining, and advancing in employment. So this is all aimed at assisting people in getting work, 

staying at work, or even increasing their work effort or advancing 

in their employment. 

Beneficiaries are informed about what will happen with their 

employment and what kind of medical coverage they can get. It addresses the concerns that beneficiaries have, their fears about 

whether they will lose the protections that they have in terms of 

medical coverage. It is basics benefits counseling: what will happen 

if you work; what will happen if you attempt work, are not able to 

continue, and have to come back into the program; or if you are 

able to be successful and continue on into the work world. It was 

designed to provide that one-on-one assistance to people who want 

to try to leave the rolls. 


dkrause on DSKHT7XVN1PROD with HEARING
84 

Mr. DOGGETT. Those are individuals that may not always be 

the first choice of an employer to take a job, and individuals that 

may be taking their first job or have had difficulty getting a job 

who really need that assistance. It is good for the employer and the 

individual employee. 

Ms. FORD. Correct, yes. 

Mr. DOGGETT. Thank you very much. 

Ms. FORD. I agree. 

Chairman DAVIS. I thank the gentleman. 

The chair now recognizes Mr. Paulsen form Minnesota for 5 minutes. 

Mr. PAULSEN. Thank you, Mr. Chairman. 

Let me ask Mr. O’Carroll a question, because in your testimony 

you mentioned that SSA should conduct certain redeterminations 

and limited issue reviews when it discovers changes in circumstances that might affect an SSI recipient’s eligibility or benefit 

amount. 

Are there any other ways that SSA can help determine if an SSI 

beneficiary has additional income or resources besides the beneficiary just simply telling SSA this information and then SSA trusting that self-reported information? 

Mr. O’CARROLL. Mr. Paulsen, a very good point. Since it is selfreported, a lot of times SSA isn’t finding out about it, and needs 

to use other forms of data matches and indicators. 

Some of the things that we have been looking at or we recommend that SSA be doing is, one, taking a look at its own 

records; taking a look at the master earnings file, comparing that 

against recipients to see if they are showing any income and taking 

a look at the earnings suspense file to see if there are any earnings 

that are being reported there. 

But then the other major thing SSA could be doing is dealing 

with the IRS, getting 1099 information from IRS, which would 

show that people are getting access to pensions, other forms of 

wages, gambling income, that type of information. So that is very 

important. And then also matching data with the States. 

So it keeps coming back to all the government agencies need to 

be talking to each other and comparing this type of information. 

Mr. PAULSEN. Good. 

And then the Unemployment Insurance program is also a program that is under this Subcommittee’s jurisdiction. It has a 12 

percent error rate, with more than $13 billion in improper payments that went out last year. So in that program the largest 

source of error involves individuals going back to work without 

then reporting that they are going back to work, and then continuing to actually receive benefits. That is a situation that is a little bit similar to the SSI overpayment discussion. 

Mr. Soczynski, is there any potential in your system to help identify wages? 

Mr. SOCZYNSKI. Not specifically in our system. The information 

that is provided by the banking industry is account balance information. However, Accuity and one of our partners, Early Warning, 

is involved in a research project with the Department of Labor at 

this point attempting to find easier ways to find out if someone has 

gone back to work while still claiming unemployment benefits fastVerDate Mar 15 2010 08:06 Mar 04, 2013 Jkt 078762 PO 00000 Frm 00088 Fmt 6633 Sfmt 6602 I:\WAYS\OUT\78762.XXX 78762

dkrause on DSKHT7XVN1PROD with HEARING
85 

er than is reported through the current data-generation system 

now. 

That pilot should be kicking off shortly. It will involve three 

States participating in that: Maryland, Illinois, and Missouri. And 

we expect that by the end of the year, we will have some information on whether or not—not necessarily through our AFI program, 

but through an identification of other databases—if we can identify 

people back to work sooner than they are going in to claim that 

they are no longer needing unemployment benefits. 

Mr. PAULSEN. Mr. Besharov, maybe you can answer. Are there 

other programs that you see that need timely and accurate wage 

information? Do you have any other thoughts? How should they get 

it in the future? 

Mr. BESHAROV. Well, I think, first of all, it would help to have 

one fundamental reform, which is what Chairman Davis said, 

which is have the States have some skin in the payment process, 

not just the administration process. That would focus some attention and deal, I think, with some of the issues about encouraging 

modern information technology. We need the States to want the 

system to work better. And it is not just audits that will do it. They 

have to feel that it costs them money to have inaccurate systems. 

It is the case across many of these means-tested programs—food 

stamps come to mind. You mentioned UI. WIC is another program. 

About 53 percent of all newborns receive WIC benefits. And this is 

supposed to be a program for just those who are nutritionally 

needy. At some point it would be good to have better evidence and 

better information about student loans, student grants. It goes 

across the board where you see we have given up the process of enforcing the rules, and we are now having to catch up for almost 40 

years of inaction. We started thinking people would just tell us 

when their income changed. 

And I just want to mention this before closing. People don’t believe this, but there was a President who said, we don’t need any 

of this recordkeeping. People should just tell us what they need, 

and we will send them a check. The President’s name was Richard 

Nixon. It was the last time we talked about a benefit that had no 

double-checking of actual wage information, and it is time for us 

to double-check as best we can across all means-tested programs. 

Mr. PAULSEN. Thank you, Mr. Chairman. I yield back. 

Chairman DAVIS. I thank the gentleman. 

The chair now recognizes the distinguished chair of the Republican Policy Committee, the gentleman from Georgia, Mr. Price. 

Mr. PRICE. Thank you, Mr. Chairman. I appreciate that. 

This is an interesting panel. I don’t envy any of you who have 

the responsibility for administering this. I think 40 years is probably the accurate timeframe for when we put in place a program 

that is extremely, extremely difficult to make work on a day-to-day 

basis. 

Ms. Colvin, you referred to that in your opening comments, and 

I want to commend you for that. 

Our hearing is entitled ‘‘The Use of Technology to Improve the 

Administration of SSI’s Financial Eligibility Requirements.’’ I think 

if you break that down, what that means is that we all want to 

make certain that those who should be receiving benefits are reVerDate Mar 15 2010 08:06 Mar 04, 2013 Jkt 078762 PO 00000 Frm 00089 Fmt 6633 Sfmt 6602 I:\WAYS\OUT\78762.XXX 78762

dkrause on DSKHT7XVN1PROD with HEARING
86 

ceiving benefits for which they are eligible, and those who shouldn’t 

don’t. That is the unanimity that I think you talked about. 

So if I step back from this and would ask you, challenge you to 

step back, if the slate is clean, what are the one or two things that 

you think are imperative to making a system work that allows us 

to utilize the technology of today to assist in the administration of 

SSI’s financial eligibility requirements? If you wipe the slate 

clean— 

Ms. Colvin, any thoughts about that, if you were not encumbered 

by the current system? 

Ms. COLVIN. Well, I think that having standard definitions of 

what is income and are resources would be important. The complexity of being able to each month look at someone’s circumstances, whether or not they have had income that month or 

if their resources have changed, is very, very complex. We have to 

look at whether or not they received benefits from someone else 

who may have contributed to their care. So it is the whole complexity of the program. 

We have in the past presented ideas to simplify the program, but 

I think the automation that we are using which allows us to be 

able to do this without having to do it manually, where we can do 

data exchanges—we have 1,500 data exchanges with local and 

State government, we have many with our Federal agencies so we 

can compete—that has helped us. 

But it is the complexity of the program. If we could find some 

way to simplify so we do not have to look at these changes every 

single month. Many times we are looking at it retroactively. For instance, if we give the correct check to someone for SSI, we give it 

to them at the beginning of the month, but they may get income 

during the month, and then that makes them overpaid. So it is the 

complexity of the program. We need to find a way to simplify it. 

I would be very happy to provide some ideas for the record, but 

I am not certain I can come up with any off the top of my head 

right here. 

Mr. PRICE. Mr. O’Carroll, one or two silver bullets? 

Mr. O’CARROLL. Well, the first one, as my esteemed colleague 

just brought up, is reducing the complexity of it. With the alerts 

and these matches where we are either using third-party databases 

or other government information, it still requires that the claim rep 

at SSA, when they get that information, develop it, talk to the person, and find out what the truth is. And that is a whole other step 

that is needed. So no matter what we are doing in terms of datamatching, it still comes down to human intervention in that interview. And that is part of the issue of complexity. 

Mr. PRICE. Mr. Soczynski, one silver bullet. 

Mr. SOCZYNSKI. One silver bullet. Well, thinking that I had the 

opportunity to listen to a few ahead of me, but clean slate, back 

to the future? You know, we have silos. We have so many disparate 

databases in so many places that trying to pull all that together 

into a big interface, you know, that is the future. That is the Star 

Wars of the technology is to really find a way to reduce the multiple places the information is filed State by State, agency by agency, and try to get it all connected, because the data is all there. It 


dkrause on DSKHT7XVN1PROD with HEARING
87 

is a way of just having it available for the right person to use at 

the right time. 

Mr. PRICE. Ms. Ford, do you agree? 

Ms. FORD. In addition to what Commissioner Colvin had said, 

I would say updating the income and asset levels to reasonable 

amounts, at least to the level they would have been were they indexed to inflation since the beginning. We are spending—— 

Mr. PRICE. I don’t know if that is a clean slate item, but I appreciate that perspective. I am running out of time, but I want to 

get Mr. Besharov up, if I may. 

Ms. FORD. My main point is we are spending an enormous 

amount of administrative resources to chase nickels and dimes. 

Mr. PRICE. Sure. Absolutely. 

Mr. Besharov. 

Mr. BESHAROV. I lead a program on comparing what we do to 

other countries. The social democracies of Europe and Asia are a 

little bit complexifying the program to simplify it. So they have a 

category called ‘‘temporary disability.’’ And the thing about temporary disability, it is easier to get people on, but it is easier to get 

them off. 

The other thing they have is they have partial disability. And so 

it is easier for them to help someone find a job because they don’t 

have these earnings penalties. Some people are just partially disabled. We need room for that in the system in a way so that the 

rehabilitative side of the program, which we haven’t talked about, 

has some way to play out. 

So that would be my blank slate. 

Mr. PRICE. Thank you, Mr. Chairman. 

Chairman DAVIS. I think the gentleman. 

And the chair now recognizes the distinguished gentleman from 

Georgia, Mr. Lewis, for 5 minutes. 

Mr. LEWIS. Thank you very much, Mr. Chairman. Again, thank 

you for holding this hearing. I want to thank all of the witnesses 

for being here. 

Director Ford, what can Congress do to help SSA and the disability community to give support to disabled recipients so that 

they can return to work when they are able to do so? I guess this 

is in keeping with the line of questions that my good friend from 

Georgia Dr. Price raised. 

Ms. FORD. Well, I think that making it easier to go back to 

work, increasing those income and asset limits so that you are not 

hitting against those complexities in the program every time you 

earn just a little bit of money. Those complexities frighten people. 

Hitting overpayments every time you earn even a little bit of 

money is very difficult. 

And being creative, we need to look at making it easier for people 

to work. The SSI program does have work incentives in it. It needs 

to make it simpler, though, so that people are not frightened when 

something happens. 

We do already have a way, through the section 1619 program, for 

people to maintain their eligibility for Medicaid so that they don’t 

lose that support system. And very often people who have very severe disabilities need to maintain their long-term services coverage 

(or their long-term care coverage) through the Medicaid program. 


dkrause on DSKHT7XVN1PROD with HEARING
88 

That is very, very important. We are talking about people with 

very severe disabilities here. So that is very important. 

Simplification of work incentives is critical, because otherwise it 

becomes too complex. We are talking about a program that is already very, very complex. And for people who are eligible for both 

Title II and Title XVI, the complexities become almost too great to 

surmount. The rules are very different. 

Mr. LEWIS. Thank you. 

Commissioner, the SSI program rules are very complicated. You 

probably know that better than anyone. They are very complicated. 

Apart from new technology are there ways to simplify the rules to 

make the SSI program less burdensome to administer and easier 

for a recipient to understand? How can you make it simple? 

Ms. COLVIN. I don’t have an immediate response to that because it is so complex. We would be very happy to work with you 

on ideas that might be worth exploring. But each time a change is 

made, probably for a good reason, it makes the program even more 

complex. So if you just were to roll out all of the changes that have 

been added on to the program over the last 40 years, each one of 

those makes it more and more complex. When you have to look at 

someone’s income and resources every single month, and regardless 

of how small that change is, it impacts or may impact their benefit, 

it becomes very difficult. 

Mr. LEWIS. You don’t have a way in this new age of technology 

to just push a button? 

Ms. COLVIN. No, we don’t have that. We do, as I said, have a 

lot of data exchanges, so we are able to get information about 

wages from IRS or the Administration for Children and Families, 

new hire directory, and some of the other pensions that they receive, et cetera. But, for instance, if someone’s living situation 

changes, they have to report that. There is no button that we can 

push. And once they report it, we then have to verify it. So it is 

a very complex process. 

Even with the reports that we get, for instance, like AFI, which 

is considered a third-party report, we have to verify that. We can’t 

just accept that. So it is a very complex program. 

Mr. LEWIS. Anyone else have any suggestion, or recommendation, or some magic, I guess you call it a silver bullet? 

Yes, Director Ford. 

Ms. FORD. I would mention that in my testimony we did comment on Social Security’s proposal for a work incentive simplification project (WISP) which is aimed at Title II, but might be able 

to help those people who are concurrent beneficiaries of Title XVI 

and Title II who want to try to work. WISP is one initiative that 

we would support moving forward on. 

Mr. BESHAROV. If I could, just to give a plug again for what 

this Committee has been doing. I sat in on a planning session at 

the Labor Department, and somebody asked the question, why was 

it so difficult and so expensive to do research on workforce development programs? And the head researcher from the Labor Department said, ‘‘Because for each contract, the contractor has to spend 

$1 million collecting the data from the States.’’ And someone said, 

‘‘Well, doesn’t data come to you, the Department of Labor?’’ ‘‘No,’’ 


dkrause on DSKHT7XVN1PROD with HEARING
89 

says the Department of Labor, ‘‘and when it comes, we can’t use 

it because it is all in different kinds of pieces.’’ 

So it sounds so unromantic, but I think the work that this Committee is doing on data simplification, data similarities, and codification is the first essential step to much more data-sharing electronically. It is very important. It seems so mundane, but it is tremendously important. 

Mr. LEWIS. Thank you. 

Thank you, Mr. Chairman. 

Chairman DAVIS. I thank the gentleman. 

Ultimately, if we are going to address the deficit and spending 

issues, it is going to be by fixing the engine and not external or 

symptomatic changes. We are hopeful. These technologies exist 

today all around us. It is a question of removing the statutory barriers, which the Inspector General and I have talked about in the 

past and others. But I appreciate the conversation so far. 

With that, we recognize Mr. Berg from North Dakota for 5 minutes. 

Mr. BERG. Thank you, Mr. Chairman. I thank the panelists. I 

appreciate the passion that is coming out and what we are doing 

here, which really does seem mundane and boring, but can have 

pretty dramatic effects. 

As you know, the pressure to reduce error rates is critical. And 

the return, the payback is pretty dramatic. Obviously, the challenge is if we can prevent an overpayment from happening, that is 

a lot easier than trying to recoup money after that money has gone 

out, for people trying to understand why that error was made and 

for people trying to correct that whole process. 

So I guess just really on the big picture, Mr. O’Carroll, I would 

like you to tell us what the most common SSI issues are that result 

in overpayment, and are they preventable? 

Mr. O’CARROLL. Mr. Berg, as I was saying in earlier testimony, 

the biggest issue is the self-reporting of SSI recipients. When you 

are talking about your assets, what is your income, what your 

property is, all those are the biggest issues. SSI is a means-tested 

program, and you have to trust the person is giving you the right 

information. I think what we are talking about today is finding 

ways to verify that information the person has given and if any of 

the circumstances have changed. 

Mr. BERG. So how would you prevent that? I am assuming that 

when it relates to property, that is probably a big issue that could 

have a wide variation of opinions on what the value is or if there 

is value. What jumps out and says, this is where it is really hard 

to determine? 

Mr. O’CARROLL. Well, the biggest part of determining eligibility 

is the redeterminations that we have been talking about. When 

those indicators come up, that is the point when you have to bring 

in the recipient and speak to them and find out whether or not 

they have the resources. And unfortunately, one of the big issues 

with the resources of SSA is that we need a balance there between 

stewardship and service. And what we are saying is we need to 

have more resources put toward stewardship. So when you get 

those indicators, you are bringing the people in, you are checking 

to see if their circumstances have changed. 


dkrause on DSKHT7XVN1PROD with HEARING
90 

And I think that is one of the issues that we would like this 

Committee to help with is for SSA to be given an integrity fund 

or a fund that is earmarked just for stewardship work where, when 

resources are limited, that there will always be the resources there 

to do the redeterminations, the continuing disability reviews, the 

cooperative disability investigations that we do, that is probably 

the best prevention, Mr. Berg. 

Mr. BERG. Thank you. 

I yield back, Mr. Chairman. 

Chairman DAVIS. I thank the gentleman. 

The chair now recognizes Mr. Reed from New York for 5 minutes. 

Mr. REED. Thank you, Mr. Chairman. 

And thank you to the witnesses for your testimony today. 

Ms. Colvin, I wanted to follow up on some prior testimony from 

the change in priorities that we have received from the Commissioner in prior hearings that I see in this area at SSA. And there 

was some direct testimony from the Commissioner about the fact 

that he was processing incoming eligibility cases over the post-entitlement checking and making sure that overpayments are getting 

looked at and corrected. Has that been the case in your experience 

in the agency; has that priority shift occurred? 

Ms. COLVIN. I don’t think there is a priority shift. We try to balance both of the workloads, both our program integrity and our direct service. If you have someone who walks into an office, you 

have to serve them. Or if someone calls you on the telephone, you 

have to serve them. And then that work is not finished. You have 

to take action as a result of that call or that visit. So certainly that 

moves to the front of the pile, but I think clearly we have tried to 

balance that. 

Now, we do all of the redeterminations and the CDRs for which 

we are funded, and we are certainly doing other kinds of things 

like our Centenarian Project and other kinds of projects that we try 

to use to identify any overpayments or anyone who is getting a 

benefit who should not. So I would say it is a continuous effort to 

balance the workload. 

Mr. REED. So when the Commissioner came and testified to us 

in previous hearings that there was a conscious decision on his 

part to switch the priority to incoming eligibility claims at the expense of post-entitlement work, the Commissioner’s testimony was 

inaccurate? 

Ms. COLVIN. Now, I can’t speak to that because I am not aware 

of that testimony, so I am certainly not going to contradict what 

he would say. But I am responsible for the program integrity initiative in the agency, and I have not seen that getting shifted. We 

have been pushing that as we always have. 

Mr. REED. So from your experience at the agency, that priority 

shift has not occurred? 

Ms. COLVIN. I would say since I have been there, there is still 

a focus on program integrity work. 

Mr. REED. Wait. But that didn’t answer the question. Was there 

a shift—there is always a focus on everything you do? 

Ms. COLVIN. I can’t speak to whether or not there has been a 

shift. I don’t know what timeframe that testimony was given. I 


dkrause on DSKHT7XVN1PROD with HEARING
91 

would be very happy to provide you an answer for the record. But 

I am not aware that there has been a shift of not doing program 

integrity work and instead doing—— 

Mr. REED. Incoming eligibility determination. 

Ms. COLVIN. Right, right. 

Mr. REED. That is fair. 

And then I was going to ask, one of the issues I see here is that 

the qualification for the benefits changes, as we point out, as you 

pointed out, are midmonth many a times, and as the individual is 

eligible for the benefits, things change. Has there been any exploration of technology? I know there is some testimony, Mr. 

Besharov, from you, in the U.K. there is realtime reporting wage 

technology that is out there that the U.K. is relying on. Is there 

anything in the agency’s point of view, Ms. Colvin, warranting to 

get to that realtime data? 

Ms. COLVIN. Thank you for that question. Yes, we have the SSI 

telephone wage reporting where an individual can call in and report any change in their wages during the month. Right now it is 

a telephone call. We are moving that application to both mobile 

phone services as well as Internet services. We want to make it as 

easy for people to be able to report changes as possible. We think 

that will go a long way. 

Mr. REED. Now, that is self-reporting from the individual. I understand in the U.K.—and I will move over here to Mr. Besharov— 

the U.K. realtime data, that is different? 

Mr. BESHAROV. That comes from the employer. And so as soon 

as there is a change, the employer sends the information to Her 

Majesty’s Revenue and Customs. 

Mr. REED. My understanding, I mean, I had four small businesses before I came to Congress, and I was doing my weekly deposits, I was doing my payroll, and right there you have it all listed. You have your Social Security number. Is there a roadblock between the IRS and that reporting data, that instant wage, weekly 

deposits that are occurring, not getting over to SSA to simply check 

what is happening during that midstream? 

Ms. COLVIN. Right now the wage reporting from the IRS is 

yearly. We have had proposals in to do it quarterly, but there has 

been concern about the impact on small businesses. 

Mr. REED. Now, what impact on small businesses? They are already reporting the data from a majority of the cases. 

Ms. COLVIN. Well, they would have to report it more frequently 

to the IRS to be able to report it to us. We get a yearly report. It 

is usually about 18 months, I think, by the time we get it, so the 

information is old when we get it. And we do, in fact, then go back 

and make changes as a result of that, but you have already incurred overpayments. 

We are entering into a contract with—and I don’t remember the 

name of it now—that would allow us to have a contract with 

large—— 

Mr. REED. Ms. Colvin, if I could reclaim my time. Because that 

is not my understanding of the process of how it works. And when 

I sign those payroll statements, and when I deposit it, is that an 

accurate statement that the wage reporting information is only prepared at the end of the year for the IRS? 


dkrause on DSKHT7XVN1PROD with HEARING
92 

Ms. COLVIN. I said we only get it at the end of the year. 

Mr. REED. You only get it. But if you got it earlier—well, my 

understanding is the IRS does get that information earlier. It gets 

it on a weekly basis with the deposits. So if you got that information earlier, would that help you with this issue? 

Ms. COLVIN. Absolutely. 

Mr. REED. And would you advocate for that? 

Ms. COLVIN. I would advocate for getting it sooner, absolutely. 

And as I was mentioning, we are entering into an agreement with 

an organization called The Work Number, which is a large payroll 

provider for employers that will, in fact, make information available to us more immediately. These are your large employers like 

Walmart and some of the other kinds of businesses. 

So we are just beginning to look at that. We think that will also 

help us to get the wage data sooner than we currently are able to 

get it. But anything that would allow us to get that information 

sooner would, in fact, allow us to reduce the overpayments. 

Mr. REED. And you would be supportive of that? 

Ms. COLVIN. Yes. 

Mr. REED. Okay. Thank you. 

Chairman DAVIS. The gentleman’s time has expired. 

And the chair now recognizes Mrs. Black from Tennessee for 5 

minutes. 

Mrs. BLACK. Thank you, Mr. Chairman. 

And I want to thank the panel for being here today. It has been 

very instructive. And I want to follow through on what my colleague was just talking about. 

Mr. Besharov, I want to go to you and talk a little bit. If you can 

ferret out a little bit more, in looking at best practices—and I think 

that is something we always should be doing is looking at how 

somebody else is doing, and do they have a better widget or a better way of doing it than what we do—can you ferret out a little bit 

more for me on what the U.K. is doing that we would like to 

model? What would be a good thing? 

Mr. BESHAROV. Thank you. 

I think first and foremost they have identified that people who 

are labeled as disabled have different levels of disability, and with 

social help many of them can work. And I think that is an important social idea. 

I had lunch this afternoon with the senior assistant to Iain Duncan Smith, who I think you had here a few weeks ago at a hearing. 

They have just conducted the next phase of their review. Seventy 

percent of the disability recipients in the U.K. were found to be either not disabled or only partially disabled. And the idea is not to 

throw them off, but to help them. 

So I think one thing we can learn from this is that our system, 

which was created a long time ago—part of our disability system 

we inherited as we tried to create something from the States—if we 

looked at this and compared it to what other countries are doing, 

I think we would decide, number one, that there are things called 

temporary disabilities, and the advantage of a temporary disability 

is that people don’t have to wait a year or more to get on benefits 

because we are not worried that it is a permanent decision. The decision can be reviewed a year or 6 months later. It is much easier 


dkrause on DSKHT7XVN1PROD with HEARING
93 

to review a decision when an initial decision was only temporary. 

It is easier to turn that decision around. 

Second, there are different levels of disability, and it is not just 

a question of allowing people to work, but giving them a little bit 

of a nudge. We think your disability is such and such; we think you 

can earn a certain amount. And if we look at other countries, what 

we see is the incentives that they create on top of those rules can 

often be very powerful. 

A person who goes to work in the Netherlands from a partial disability, designated having a partial disability, is able to earn more 

than the amount the disability payment would have been. Now, we 

say, well, that is just going to cost us money, but it turns out that 

that moves so many more people into work, that the government 

ends up saving money. 

We should be able to ask these questions, and the only way you 

could ask them and answer them is to have modern data systems 

and have a system that understands that it is not just asking people if they want to work. We have to encourage them a little, and 

we have to give them the financial incentives if they take a job that 

we will respect the fact that they took a job. 

Mrs. BLACK. So looking at the analysis and the data from the 

U.K., can we then assume from that that they have less people who 

stay consistently on their SSI? Do they have people moving in and 

out of the program and, therefore, a total number that is less than 

what we have here in the United States? Is that an assumption we 

can jump to or not? 

Mr. BESHAROV. I don’t know enough about the program, but I 

wouldn’t jump to that conclusion. If we look at other countries like 

the Netherlands, which had a much larger problem, we know that 

when these rules are imposed, the total number of disabled goes 

down. But in this country it really would depend on what the error 

rates are and whether the incentives would help people who are 

only partly disabled. 

I know this is only anecdote, and there are experts around the 

table, but I come from the welfare world, and I can tell you what 

I am told. If someone spends 6 months, a year, or 2 years getting 

on a disability program, and then the first thing that happens is 

they get a letter saying, well, why don’t you go look for a job—am 

I right about that? And so what I am told is there is a certain, wait 

a minute, now, I am not going to mess up what I waited so long 

to get. 

So I think part of the problem is the structure of the program 

which creates such a high hurdle to get in that it is difficult to get 

out. 

Mrs. BLACK. I know my time is going to run out here. The other 

question that I would have—and each of the panel members, this 

would be something for you as well. I know you are not going to 

have time to answer it. You may be able to do that followup in 

writing for me—but in just breaking down silos, which silos would 

you need to break down to have a system that you feel would be 

working together, where you would have the right hand knowing 

what the left hand is doing? 

I think that my colleague had already rooted that out in, Ms. 

Colvin, you getting information more quickly. So there is a silo 


dkrause on DSKHT7XVN1PROD with HEARING
94 

there that needs to be broken down so that it can—and you all 

have been doing a good job, and in reading this notebook I want 

to commend you on that, but we still have a ways to go. 

So thank you so much, Mr. Chairman, and I yield back the remainder of my time. 

Chairman DAVIS. I thank the gentlewoman. I want to thank all 

of you on the panel for your thoughtful perspectives on these 

issues. We appreciate you investing the time to come in and talk 

about the experience in SSI that can be transferable to other 

means-tested programs. 

If any Members have additional questions, they will get them to 

you directly. We would ask that you submit them. They will send 

them to you in writing. If you would submit your answers also to 

us for the record so they can be inserted for all to see, we would 

appreciate that. 

Chairman DAVIS. Thank you again for being here, and this 

hearing is adjourned. 

[Whereupon, at 4:21 p.m., the Subcommittee was adjourned.] 

[Submissions for the Record follow:] 


dkrause on DSKHT7XVN1PROD with HEARING
95 


dkrause on DSKHT7XVN1PROD with HEARING78762A.065

Additional Information Submitted for the Record 

By 

Carolyn W. Colvin 

Deputy CommissIoner 

Social Security Administration 

August 13, 2012 

Hearing on the Use of Technology to improve the Administration of 

the Suppiemental Security Income Program's 

Financial Eligibility Requirements 

July 25, 2012 

The Committee on Ways and Means 

Subcommittee on Human Resources 

United States House of Representatives 
96 


dkrause on DSKHT7XVN1PROD with HEARING78762A.066

Addilionallnforll'lation Provided hy SSA '5 D~puty Cnmmiuionn 

Carolyn W. Colvin in Rr!pon$~ 10 Oueslion Raised by Mr. Price aooul How 10 ~I 

Use Te<:bnology 10 Admillister SSI's Financial Eligibilitv Requirements if 

Unencumbered hy tbe Current System 

Ilhink that if someone were designing an SSI-like program today. uncncumbeJed by the 

cumO! prognim. the ability 10 quickly and aulomatically verify the eligibility factors for 

an individual'S case Ekely would be 11 comcrstonc o f the neW prognlm. As you have 

heard in previous testimony, the current SSI program's reliance on self-n'porting Clllt lead 

to improper paymcnts and can be labor intensive for both the beneficiary and us. While 

we arc continuing 10 look for ways for dala matching to placc the n\"Cd for selfreporting, not every fe"dture ofthe program currently lends itselflo ~ulomatic verification. 

For-el(amplc. an individual" s living ammgcment clln ~lTect the SSt b<:nefil wnOUO!. [fhe 

ItT she is living with someone else, we need to delrnnine in elTcct. who is the head of the 

household and wlu:thl.-T food or shelter is being provided to the SSI beneficiary. We have 

not yel found II way to Dutomate this determination. 

"tthough automated vcrilications ()f eligibility woold be an important factor in a rte\v 

program, important policy decisions would also need to be m3de. One uch de<:ision 

might be to what elden! the traditional rigorous meanS-lest woold be modified in order to 

accommodate automation. Baekto the living alll1l\gemo::nt e!Qllnple-\\-ould a new 

program ignore the fact ihat someone was re.:c:iving free rood and shelter b«ause 

these determinations arc relatively complex. lime-consuming. and rely on self-reponing 

and/or third pany rcpor1s? Alternatively, would the new program maintaio the traditional 

means-testing eonceptlbat a pcTSOO receiving free food and shelter was in less need of 

assistance ihan someone who had to usc his or her income to purcbase food and shelter? 

As I sta t~-d in my !!!Slimon)" significant program simplification is difficullto achieve. 

You will always hHve to address the critical- arid often competing- issues of program 

adequacy, program emciency. progrum equity . and program integrity. 
97 

Æ 


dkrause on DSKHT7XVN1PROD with HEARING78762A.067

Additionallnr(lrmation Provided by SSA '~ Deputy Commissioner 

Carolyn W. Colvin in Response t(l Question Raised by Mr. Reed about Change in 

Priority from Conducting; Post-Entitlement Reviews tn Processing Initial Claims 

Our past testimony on this issue acknowledged the tough ~hoiccs m: faced as w~ hied 10 

dft(:tively balance our con:. program integrity. and other wnrk!ollOh in !he roce nflimited 

resources. As !he fnllowing cbarts sbow. in each year since 2007. wben Commissioner i\strue 

was sworn in. we have increased !be number of continuing disability reviews we l>ave COndUO::led. 

Like"isc. except for a ''''I)' slight decline nf about 9,000 cases betv .. een FY 2010 and FY 2011. 

the numbers of SSI redelerminations: ""e ha,'e conducted have also increased each year. The 

increased numbcr$ ofSSI redeterminations and continuing disability n:views have increased our 

program lICCU1&Cy and program integrity. 

425,000 

l,6SoO,OOO 

1.100.000 

t)l2S,00) 

I.Sso,ooo 

1.175,00) 

Medical CDRs Completed 

,-

-

650,000 

, • 

, 

, 

, .*435.000 

;:5 000 

208~5,000 - -

~ ~~ ~ N~ ~1 ~ ~ 

--~ 

Redeterminations Completed 

2.6U.ooo 

l ,466.000,?-__ ± ... .. --. 2.451,oou 

1.6ll)1OO 

~~ :J -

--"-""---"---- "" "- ""--"-'"---' "- '"_._-"-"- '- -'"."----'" - '_,ocI ~~~