Opinion ID: 3047861
Heading Depth: 3
Heading Rank: 1

Heading: The Five-Step Analysis

Text: [1] A claimant is disabled under Title II of the Social Security Act if he is unable “to engage in any substantial gainful activity by reason of any medically determinable physical or mental impairment which can be expected to result in death or . . . can be expected to last for a continuous period of not less than 12 months.” 42 U.S.C. § 423(d)(1)(A). To determine whether a claimant meets this definition, the ALJ conducts a five-step sequential evaluation that asks (1) whether the claimant is presently engaging in substantially gainful activity; (2) whether the claimant has a severe impairment; (3) whether the impairment is listed, or equivalent to an impairment listed, in Appendix I of the regulations; (4) whether the impairment prevents the claimant from doing past relevant work; and (5) whether the impairment prevents the claimant from performing any other substantially gainful activity. 20 C.F.R. § 404.1520(a)(4). The claimant bears the burden of proving steps one through four, consistent with the general rule that “[a]t all times, the burden is on the claimant to establish [his] entitlement to disability insurance benefits.” Tidwell v. Apfel, 161 F.3d 599, 601 (9th Cir. 1998). Once this prima facie case is established, the burden shifts to the Commissioner at the fifth step to show that the claimant may perform other gainful activity. See Tackett, 180 F.3d at 1098. [2] “A finding of ‘disabled’ under the five-step inquiry does not automatically qualify a claimant for disability benefits.” Bustamante v. Massanari, 262 F.3d 949, 954 (9th Cir. 2001). Under 42 U.S.C. § 423(d)(2)(C), a claimant cannot receive disability benefits “if alcoholism or drug addiction would . . . be a contributing factor material to the Commissioner’s determination that the individual is disabled.” Congress adopted this amendment in 1996 as part of the Contract with America Advancement Act (“CAAA”), Public Law 104PARRA v. ASTRUE 3441 121. As we have previously explained, the purpose of the CAAA was “to discourage alcohol and drug abuse, or at least not to encourage it with a permanent government subsidy.” Ball v. Massanari, 254 F.3d 817, 824 (9th Cir. 2001). Under the implementing regulations, the ALJ must conduct a drug abuse and alcoholism analysis (“DAA Analysis”) by determining which of the claimant’s disabling limitations would remain if the claimant stopped using drugs or alcohol. 20 C.F.R. § 404.1535(b). If the remaining limitations would still be disabling, then the claimant’s drug addiction or alcoholism is not a contributing factor material to his disability. If the remaining limitations would not be disabling, then the claimant’s substance abuse is material and benefits must be denied. Id. Appellant asserts that the ALJ erred by failing to conduct the full five-step analysis to determine that Parra’s cirrhosis was disabling before conducting the DAA Analysis to determine if Parra’s alcoholism was material. See Bustamante, 262 F.3d at 955 (holding ALJ must identify disability under fivestep procedure before conducting DAA Analysis to determine whether substance abuse was material to disability). We agree with appellant that the ALJ’s findings regarding Parra’s cirrhosis are ambiguous. In his decision, the ALJ initially states that “the claimant did not have a severe physical impairment prior to the date last insured of December 31, 1995.” Later, however, the ALJ finds that “by the summer of 1994 the claimant was disabled primarily due to heavy alcohol consumption and intoxication” and also had “moderately severe but curable cirrhosis of the liver.” After engaging in the DAA Analysis to examine the effects of Parra’s alcoholism on his cirrhosis, the ALJ concludes that “[s]ince July 1, 1999, the medical evidence establishes the claimant had hepatitis, cirrhosis of the liver, hepatocellular carcinoma and alcoholism. He did not have an impairment or combination of impairments listed in or medically equal to one listed in Appendix 1, Subpart P, Regulations No. 4. Prior to July 1, 1999 the claimant’s primary impairment was alcoholism.” 3442 PARRA v. ASTRUE [3] Nonetheless, while the ALJ’s five-step analysis is not completely clear, we find any error in this regard to be harmless. See Curry v. Sullivan, 925 F.2d 1127, 1131 (9th Cir. 1990) (finding ALJ error harmless because it did not affect the result). Although the decision does not explicitly label Parra’s cirrhosis as disabling, the ALJ gave Parra the benefit of the doubt: the DAA Analysis assumed that Parra’s cirrhosis was disabling and focused correctly upon whether abstinence would have cured this disability before his insurance lapsed.2 Because the DAA Analysis assumed Parra’s cirrhosis was disabling, any error in arriving at that initial conclusion would not affect the ALJ’s ultimate decision that Parra’s alcoholism was material to his cirrhosis. We therefore reject this proffered ground for reversal.