Social Security administrator Michael Astrue said he’s one of the few administration officials who has been a CEO of a publicly-traded company, the biotechnology firm Transkaryotic Therapies Inc. in Cambridge.
SPRINGFIELD – An Institute of Medicine study into fraud and abuse of the Social Security Administration’s Supplemental Social Security income program will begin within a few months, the Social Security Administrator said Monday on a visit to Springfield.
Families can claim about $600 a month in benefits for disabled children, said Administrator Michael J. Astrue at a news conference with U. S. Rep. Richard E. Neal, D-Springfield. But there is a suspicion that unscrupulous parents are using trumped-up and unverifiable claims of social and behavioral problems to game the system and get disability payments for children who are perfectly fine.
The children’s Supplemental Security Income program is a $10 billion program. According to Social Security data, there were 5,016 Hampden County residents under the age of 18 receiving Social Security Supplemental Security Income as of December 2010.
There were 523 children getting the benefit in Hampshire County and 337 in Franklin.
“When you look at where those claims are being made, those claims are coming from the older cities,” Neal said referring to places like Springfield and Holyoke with low incomes and a lack of jobs.
As a member of the powerful House Ways & Means Committee, Neal has some sway over how the Social Security Administration does business. Astrue, who is from Belmont, took Neal on a tour of the Social Security office at 44 Bond Street, as put of a trip through New England. He had a serried s of events in Hartford Monday afternoon.
Astrue also answered questions about budget cutbacks at Social Security and payroll tax cut, which expires again Feb. 29. Astrue said in theory the federal government plans to eventually make the Social Security Trust Fund whole for the lost revenue.
He said the U.S. Supreme Court ruled about 20 years ago that Social Security must use the same criteria to scrutinize children’s disability claims as it uses for adults. Problem is, a lot of the adult benchmarks are vocationally-oriented and don’t translate well to children.
Also, Social Security has not kept its medical standards updated as it should, Astrue said.
“I understand the need to do things in an emergency,” Astrue said. “But as you get away from the trust fund and start making Social Security part of the government’s general fund people feel differently about the system. It starts to become part of the welfare establishment and not a pension program.”
Astrue said the Social Security Administration is under other pressures. Applications for disability claims and retirements rose 30 percent with the recession. At the same time budget cuts cost him 7,000 workers in two years out of a staff of 65,000.
That means fewer small Social Security offices and no more Social Security workers stationed in libraries and senior centers. More work has to be done online and on the phone, he said.
The number of retirement claims field online jumped from 10 percent of the total to 44 percent of the total in the last four years, he said.
Astrue said he’s one of the few administration officials who has been a CEO of a publicly-traded company, the biotechnology firm Transkaryotic Therapies Inc. in Cambridge. He also taught biotechnology law and policy at Boston University and served as Chairman of the Massachusetts Biotechnology Council.