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The Honolulu Advertiser
Posted on: Saturday, November 21, 2009

Probe of disability claims sought


By Derrick DePledge
Advertiser Government Writer

The U.S. Social Security Administration yesterday asked an internal watchdog to investigate whether furloughs of state workers in California and Hawai'i have disrupted the processing of disability claims.

The federal agency had cautioned both states earlier this year that furloughs of federally funded state workers who process disability claims could cost the states federal money and delay claims to people in need.

Michael Astrue, the Social Security commissioner, asked the agency's inspector general to investigate. Astrue's concerns center mostly on practices in California, after a congressman alleged that state workers may be denying an unusually high number of disability claims or are masking the number of claims actually being reviewed.

But Astrue also said he was concerned about Hawai'i because of statements about "business efficiencies" in the state Department of Human Services "that closely track statements made by California officials."

Gov. Linda Lingle told the Social Security Administration in June that her initial plan to furlough all state workers under her control was based on her belief that state workers should not be treated differently. "It is troubling that some would argue they are 'special' or should be set apart from their brethren, simply because their pay comes from a federal source," the governor wrote at the time.

But Lingle's initial furlough plan was blocked by public sector labor unions in court as an unconstitutional violation of collective bargaining.

The federally funded state workers who process disability claims are now taking furloughs as part of a new two-year contract between the state and the Hawaii Government Employees Association.

"We're furloughing them because we have to," said Lillian Koller, the director of the state Department of Human Services. "It is part of the ratified contract."

Koller said the state has sought to hire more federally funded workers and obtain additional federal money for overtime to process claims in the department's disability determination branch.