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Social Security Disability Reviews: the Human Costs

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Social Security Disability Reviews: the Human Costs S. HRG. 98-773 PART 3 SOCIAL SECURITY DISABILITY REVIEWS: THE HUMAN COSTS JOINT HEARING BEFORE THE SUBCOMMITTEE ON SOCLU SECURITY OF THE COMMITTEE ON WAYS AND MEANS HOUSE OF REPRESENTATIVES AND THE SPECIAL COMMITTEE ON AGING UNITED STATES SENATE NINETY-EIGHTH CONGRESS SECOND SESSION PART 3-HOT SPRINGS, ARKANSAS MARCH 24, 1984 Serial 98-79 Printed for the use of the House Committee on Ways and Means and the Senate Special Committee on Aging U.S. GOVERNMENT PRINTING OFFICE 35-455 0 WASHINGTON: 1984 COMMITTEE ON WAYS AND MEANS DAN ROSTENKOWSKI, Illinois, Chairman SAM M. GIBBONS, Florida BARBER B. CONABLE, JR., New York J.J. PICKLE, Texas JOHN J. DUNCAN, Tennessee CHARLES B. RANGEL, New York BILL ARCHER, Texas FORTNEY H. (PETE) STARK, California GUY VANDER JAGT, Michigan JAMES R. JONES, Oklahoma PHILIP M. CRANE, Illinois ANDY JACOBS, JR., Indiana BILL FRENZEL, Minnesota HAROLD FORD, Tennessee JAMES G. MARTIN, North Carolina ED JENKINS, Georgia RICHARD T. SCHULZE, Pennsylvania RICHARD A. GEPHARDT, Missouri BILL GRADISON, Ohio THOMAS J. DOWNEY, New York W. HENSON MOORE, Louisiana CECIL (CEC) HEFTEL, Hawaii CARROLL A. CAMPBELL, JR., WYCHE FOWLER, JR., Georgia South Carolina FRANK J. GUARINI, New Jersey WILLIAM M. THOMAS, California JAMES M. SHANNON, Massachusetts MARTY RUSSO, Illinois DON J. PEASE, Ohio KENT HANCE, Texas ROBERT T. MATSUI, California BERYL ANTHONY, JR., Arkansas RONNIE G. FLIPPO, Alabama BYRON L. DORGAN, North Dakota BARBARA B. KENNELLY, Connecticut JOHN J. SALMON, Chief Counsel JOSEPH K. DowLEY, Assistant Chief Counsel ROBERT J. LEONARD, Chief Tax Counsel A.L. SINGLETON, Minority Chief of Staff SuRcoMMirIEE ON SOCIAL SECURITY J. J. PICKLE, Texas, Chairman ANDY JACOBS, JR., Indiana BILL ARCHER, Texas RICHARD A. GEPHARDT, Missouri BILL GRADISON, Ohio JAMES M. SHANNON, Massachusetts PHILIP M. CRANE, Illinois WYCHE FOWLER, JR., Georgia WILLIAM M. THOMAS, California ROBERT T. MATSUI, California BERYL ANTHONY, JR., Arkansas ERWIN HYTNER, Professional Staff CHARLES M. BRAIN, Professional Staff PATRICIA E. DILLEY, Professional Staff JOSEPH H. GRANT, Professional Staff SPECIAL COMMITTEE ON AGING JOHN HEINZ, Pennsylvania, Chairman PETE V. DOMENICI, New Mexico JOHN GLENN, Ohio CHARLES H. PERCY, Illinois LAWTON CHILES, Florida NANCY LANDON KASSEBAUM, Kansas JOHN MELCHER, Montana WILLIAM S. COHEN, Maine DAVID PRYOR, Arkansas LARRY PRESSLER, South Dakota BILL BRADLEY, New Jersey CHARLES E. GRASSLEY, Iowa QUENTIN N. BURDICK, North Dakota PETE WILSON, California CHRISTOPHER J. DODD, Connecticut JOHN W. WARNER, Virginia J. BENNETT JOHNSTON, Louisiana DANIEL J. EVANS, Washington JEFF BINGAMAN, New Mexico JOHN C. ROTHER, Staff Director and Chief Counsel DIANE LIFSEY, Minority Staff Director ROBIN L. KROPF, Chief Clerk (11) CONTENTS Page Press release of Thursday, March 15, 1984, announcing the hearing ......... .......... 1 Opening statement of Hon. J.J. Pickle, a Representative in Congress from the State of Texas ............................................................... 3 Opening statement of Hon. David Pryor, a U.S. Senator from the State of Arkansas........................................................................................................................ 5 Opening statement of Hon. Beryl Anthony, Jr., a Representative in Congress from the State of Arkansas ............................................................... 8 WITNESSES Arkansas, State of: Hon. Bill Clinton, Governor .............................................................. 9 Disability Determination Service, Julius Kearney ............................................ 18 Department of Human Services, Division of Rehabilitation Services, E. Russell Baxter .............................................................. 20 Baxter, E. Russell, Arkansas Department of Human Services, Division of Rehabilitation Services ............................................................... 20 Clinton, Hon. Bill, Governor, State of Arkansas ....................................................... 9 Canada, Hon. Bud, Arkansas State Senate .............................................................. 323 Central Arkansas Legal Services, Marilyn Rauch .................................................... 67 Dormois, Minnie E., Office of Hearings and Appeals, Fort Smith, AR ................. 304 Evans, Paul Michael, Hot Springs, AR ............................. 326 Hubbard, Hon. David T., Office of Hearings and Appeals, Fort Smith, AR ......... 286 Kearney, Julius, Arkansas Disability Determination Service ............. ................... 18 Kolb, Payton, M.D., Little Rock, AR .............................................................. 27 Lewis, Delbert, Little Rock, AR .............................................................. 327 Mayhue, Hon. Francis, Office of Hearings and Appeals, Fort Smith, AR ............ 260 Rauch, Marilyn, Central Arkansas Legal Services ................................................... 67 Spencer, Frederick S., Mountain Home, AR .............................................................. 55 Stevens, Douglas, North Little Rock, AR ............................................................... 25 Thomasson, Hon. Jerry, Office of Hearings and Appeals, Fort Smith, AR .......... 76 Thompson, Mildred, Lewisville, AR .............................................................. 324 Thornton, Denver L., El Dorado, AR .............................................................. 64 SUBMISSION FOR THE RECORD National Association of Disability Examiners, Reyes Gonzales, statement ......... 329 (Ill) SOCIAL SECURITY DISABILITY REVIEWS: THE HUMAN COSTS SATURDAY, MARCH 24, 1984 HOUSE OF REPRESENTATIVES, SUBCOMMITTEE ON SOCIAL SECURITY, COMMITTEE ON WAYS AND MEANS; AND U.S. SENATE, SPECIAL COMMITTEE ON AGING, Hot Springs, AR. The subcommittee and special committee met at 9 a.m. in joint session, pursuant to notice, in the auditorium, Hot Springs Reha- bilitation Center, Hot Springs, AR,- Hon. J.J. Pickle (chairman, Subcommittee on Social Security) presiding. [The press release announcing the hearing follows:] [Press release of Thursday, March 15, 1984] HON. J.J. PICKLE (D., TExAS), CHAIRMAN, SUBCOMMITTEE ON SOCIAL SECURITY, COMMITTEE ON WAYS AND MEANS, HOUSE OF REPRESENTATIVES, ANNOUNCES A FIELD HEARING ON THE STATUS OF CONTINUING DISABILITY REviEwS (CRD) The Honorable J.J. Pickle (D., Texas), Chairman of the Subcommittee on Social Security of the Committee on Ways and Means, U.S. House of Representatives, today announced that the Subcommittee will hold a hearing to examine the present status of the social security disability review process. The hearing is to be held at the Hot Springs Rehabilitation Center, 105 Reserve Avenue, Hot Springs, Arkansas, on Saturday, March 24, beginning at 9:00 a.m. This hearing will be held jointly with the Senate Special Committee on Aging, represented by Senator David Pryor (D., Arkansas). The hearing will focus on three main concerns: first, the effect of the present pro- cedures on disability recipients; second, the growing pressure on the states to imple- ment their own administrative procedures for this program in defiance of federal policy guidelines; and third, the inadequacy of administrative initiatives to resolve this crisis. The Subcommittee expects to take. testimony from invited witnesses including beneficiaries, state officials, and representatives from the Department of Health and Human Services. In announcing the hearing, Chairman Pickle noted: "It is critical that the disability program be properly administered since it pro- vides the primary source of income for the majority of over 6 million physically or mentally disabled Americans. "During the past three years, over one million disabled workers have had their continuing eligibility reviewed and 45 percent of them have been told they are no longer eligible for benefits. However, this determination has often been made erro- neously. Nearly two-thirds of those who appeal these terminations have their bene- fits restored after enduring a lengthy appeals process. This process of review, bene- fit disruption, and legal review represents a serious emotional and physical threat to millions of disabled Americans and their families. "As a result of the CDR procedures used, the whole social security disability pro- gram has been plunged into administrative chaos. In twenty states, the federal courts have intervened and substituted a court ordered standard of review for that called for by the Social Security Administration. In nine other states, the governors have declared a self-imposed moratorium on processing disability reviews. This com- (1) 2 bination of federally court ordered and state imposed actions has effectively brought to a halt the uniform national system of disability insurance under social security. "The human costs of the current crisis," said Mr. Pickle, "are incalculable. The purpose of the hearings Senator Pryor, Congressman Beryl Anthony, Jr. (D., Arkan- sas) and I are holding is to demonstrate beyond doubt the folly of the Administra- tion's reluctance to support the kind of legislative solution my Subcommittee has developed and the Committee on Ways and Means has unanimously approved." WRITTEN COMMENTS IN LIEU OF PERSONAL APPEARANCE For those who wish to file a written statement for the printed record of the hear- ing, six copies are required and may be submitted by the close of business Friday, April 6, 1984, to John J. Salmon, Chief Counsel, Committee on Ways Means, U.S. House of Representatives, Room 1102 Longworth
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