Testimony
by Ken Nibali, Associate Commissioner for Disability, from 9/12/00
Implentation procedures of PL 104-121.
In June 1996, over 209,000 beneficiaries with special
DAA codes were notified that their disability benefits would terminate
effective January 1, 1997, due to the change in the law and that they could
request a new medical determination.
About 141,000 responses to initial notices. Of these cases
about 131,000 cases required a medical decision. Of remaining 10,000 cases:
about half had benefits terminated for some non-DAA reason; about 4,000
had been incorrectly coded DAA, and almost 900 were found eligible for
other benefits based on age. For the 68,000 individuals who did not respond
to he initial notice, eligibility to disability benefits was terminated
effective January 1, 1997.
SSA made medical decisions in 131,000 cases. After
appeals, benefits were continued based on another disability in about 81,000
cases and 50,000 were ceased.
Out of 209,000 identified DAA beneficiaries, SSA ceased
benefits for about 123,000 and continued benefits based on another disability
or based on age for about 86, 000 beneficiaries.
Benefit payments continued past January 1997 for beneficiaries
whose timely filed appeals were still pending, but the vast majority were
effectuated by January 1, 1997.
In November 1988, SSA’s Office of the Inspector General
(OIG) questioned whether almost 20,000 beneficiaries with a diagnosis of
DAA or a DAA code were still receiving benefits and asked SSA to respond
and SSA began to review cases.
On May 12, 2000, the Inspector General issued the report
Implementation of Drug Addiction and Alcoholism Provisions of Public Law
104-121, which projected that an estimated 3,190 individuals may be being
paid benefits who should have been terminated for DAA materiality.
As of 9/12/00, 339 of the almost 20,000 individuals identified
by the Inspector General were found to be improperly receiving benefits
because of DAA materiality and thus benefits were ceased.
