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Due Dissendence reports on Elon and Company’s shennaigans and their plans for Social Security. Well worth the listen, in my opinion – starts at the 2:35:15 mark.
The article they’re covering follows:
EXCLUSIVE: Memo details Trump plan to sabotage the Social Security Administration
An internal Social Security Administration (SSA) memo, sent on March 13 and obtained by Popular Information, details proposed changes to the claims process that would debilitate the agency, cause significant processing delays, and prevent many Americans from applying for or receiving benefits.
The memo, authored by Acting Deputy SSA Commissioner Doris Diaz, purports to be motivated by a desire to mitigate “fraud risks.”
Elon Musk has pushed several false claims about the nature and scope of Social Security fraud. In a recent interview on Fox Business, Musk suggested that 10% of federal expenditures were related to Social Security fraud. This is false. Social Security fraud does exist, but “improper” Social Security payments amounts to about $9 billion annually — less than 1% of total Social Security benefits paid and 0.1% of the federal budget. Most improper payments are not criminal fraud but the result of beneficiaries or the SSA failing to update records.
The biggest change contemplated by Diaz’s memo is to require “internet identity proofing” for “benefit claims… made over the phone.” When an SSA customer is “unable to utilize the internet ID proofing, customers will be required to visit a field office to provide in-person identity documentation.”
Currently customers can make claims and verify their identity without using the internet or visiting a SSA office. Fraud is extremely rare because there are many safeguards in place. After initiating a call, customers must provide their social security number, date of birth, parents’ names, mother’s maiden name, and date of birth. After the initial teleapplication is completed, the information provided is checked against tax returns, pay stubs, bank statements, and medical information, depending on the nature of the claim. If there are any discrepancies, a customer may need to mail a copy of their birth certificate to the SSA. About 40% of all claims are currently processed over the phone.
Because the SSA serves a large population that is either older or physically disabled, many cannot access the internet. Under the new system, this would force these populations to visit an office to have their claim processed. The Diaz memo estimates it would require 75,000 to 85,000 in-person visitors per week to SSA’s offices to implement the policy.
SSA offices do not currently have the resources to handle an influx of in-person appointments of this size. In 2023, the most recent data available, there were about 119,128 daily visits, on average, to SSA offices. Eight-five thousand more week visits would be a 14% increase. SSA offices no longer accept walk-ins and the wait time for an appointment, even before these changes, averaged over a month.
The memo anticipates creating a huge surge in demand for in-person appointments as the SSA slashes staff and closes offices. Acting SSA Commissioner Leland Dudek has announced that he will terminate 7,000 workers, about 12% of the workforce. Meanwhile, dozens of SSA offices are being shuttered. Some people need to travel more than 100 miles to get to the nearest location. As the SSA limits services that could be provided over the phone, it is ending in-person services at some offices, converting them to phone-only.
An SSA source told Popular Information that there are “no significant concerns about fraud at intake” because no benefits are being distributed. And there are already multiple layers of identity verification in place before a claim is approved. The source said they believe the new ID verification steps are an effort to “create additional hurdles to filing claims and overwhelm the system.”
The memo acknowledges that the policy changes would create increased “challenges for vulnerable populations.” This seems to concede that many elderly and disabled people are physically unable to travel to an in-person office. It is unclear how these populations will be able to receive benefits at all.
The combination of fewer workers, fewer offices, and a massive increase in the demand for in-person services could sabotage the Social Security system — effectively denying many Americans the benefits they are due.
All of this is directly acknowledged in the Diaz memo. The memo predicts “service disruption,” “operational strain,” and “budget shortfalls.” It also says preventing people who cannot use the internet or travel to an in-person office from receiving benefits could result in “legal challenges and congressional scrutiny.”
A request for comment to the SSA was not immediately returned.
“DOGE’s workaround”
On March 12, the day before the Diaz memo was sent, the Washington Post reported that the SSA was considering a proposal to “end telephone service for claims processing.” That move, the paper reported, “would disrupt Social Security’s internal operations and threaten its ability to serve the public, current and former officials warned.”
In response to the Washington Post’s article, the SSA issued a press release saying that “reports in the media that Social Security plans to eliminate telephone services are inaccurate.” Rather, the press release said, phone service would only be eliminated in cases where beneficiaries need to change their banking information.
The March 13 Diaz memo appears to be a way of implementing the original policy without technically ending telephone service for claims processing. Under the system described in the memo, customers can still use the phone to submit an application for a claim. The claim, however, would be considered “unverified” until an ID was verified through the internet or in person.
The SSA source believes the Diaz memo “is DOGE’s workaround.” The agency can technically claim that Americans can still make claims over the phone. But the fine print of the new policy means these claims will never be approved without using the internet or making an in-person visit.
Tonight’s musical offering:
Dispatches from the Asylum 