A recent CBS News Investigation report revealed that of the nearly one and a half million people who were denied at the initial application level for Social Security Disability Benefits in 2006, two-thirds – or approximately one million applicants – decided not to appeal the denial. But the decision not to pursue an appeal is often a mistake, considering that most claims are not approved before a hearing is conducted.
Statistics show that only 30% of claims at the initial application level are approved. If an appeal is made, the next step is a request for reconsideration. Unfortunately, the numbers are actually worse with only 15% of the claims being awarded.
However, persistence pays off at the next level known as the hearing stage. It is here that the claimant will be able to sit before the individual deciding their claim for the first time, an Administrative Law Judge. For those claimants who decide to go forward and request a hearing, at least half will be approved for social security benefits. That number goes up even more for claimants who have a representative at the hearing.
Often claimants will decide not to appeal their case, but then at a later time, to file a new application for benefits. This is not the proper course of action for several reasons. First, those individuals have to start the whole process all over again. This, of course, means that there is a 70% chance the claim will be denied at the initial level and an 85% chance the claim will be denied on reconsideration.
The second problem with filing a new application is that the claimant’s opportunity to be heard by a Judge – where there is a real chance of winning the case- is only further delayed. Considering that it often takes 2 years or more from the time a request for a hearing is filed to when the hearing is scheduled, the time spent completing and awaiting a ruling on the subsequent application (and the request for reconsideration) add months to the seemingly endless wait time.
The third problem with filing a new application instead of appealing the previous denial is the possibility that the claimant may have inadvertently forfeited benefits that he or she would have been previously entitled to. A denial at any stage of the process that is not appealed is considered a final judgment as of the date of the denial. The practical effect of this is that a claimant who wins their case on a subsequent application cannot, with limited exceptions, receive retroactive benefits prior to the date of the previous denial.
A hypothetical example may help clarify this. John Worker became disabled on May 1, 2002. On May 1, 2003, he filed his initial application for social security disability benefits but was denied. He then filed a request for reconsideration. However, this request too was denied in a letter dated May 1, 2004. John considered requesting a hearing but was fed up with the Social Security system. After a year, John reconsidered his decision but the time had passed to appeal the previous decision. Thus John filed another initial application, this one dated May 1, 2005. This time John pursued his case all the way to the hearing stage. The Judge ruled in his favor and also found that John was entitled to retroactive benefits. However, the back pay could only go back to May 1, 2004 because of the previous denial. Thus by not pursuing the original claim, John lost out on benefits from May 1, 2002 until May 1, 2004, which could equal thousands in lost benefits.
Social Security is undoubtedly a lengthy and frustrating process, especially when seemingly strong cases are denied at the initial stages. But it pays to be patient. By appealing all the way to the hearing stage, the claimant may actually be approved quicker and receive more benefits!
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