The Social Security Administration (SSA) is planning to raise the fee cap for representatives assisting claimants, a move that could alter the landscape of legal support for Social Security applicants. Currently set at $7,200, the cap will be lifted to $9,200 for those engaging in the fee agreement process, marking the first such increase since November 2022. This adjustment aims to address the challenge of finding high-quality legal assistance for claimants seeking backpay and owed benefits.
Martin O’Malley, Commissioner of the SSA, emphasized the importance of quality representation in navigating the complexities of Social Security programs, from initial claims to appeals. The fee cap hike is intended to facilitate access to skilled legal support, crucial for ensuring favorable outcomes for applicants.
“We appreciate that Commissioner O’Malley understands the value of representation–that our work provides vital support to both our clients and SSA,” David Camp, CEO of the National Organization of Social Security Claimants’ Representatives (NOSSCR), posted in his LinkedIn page.
“With this acknowledgement of inflation’s effects on our small businesses, we can help in more SSI, overpayment, and CDR cases. We’ll be able to do our work at a higher level,” Camp added.
The decision to raise the fee cap comes in the context of a backlog of cases within the SSA, leading to extended wait times for claimants. Currently, applicants wait an average of 8 months for an initial decision, with an additional 7 months for appeals to be processed. The SSA aims to reduce these wait times to 4 months, highlighting the role of representatives in expediting the process by aiding in the development of medical evidence for disability claims.
Over the years, the stagnant fee cap has failed to keep pace with inflation, posing challenges for claimants in securing comprehensive legal representation. This has resulted in a shortage of attorneys willing to take on cases due to inadequate fees, leading to less personalized and generalized service for claimants. The impending increase in the fee cap is expected to alleviate some of these difficulties, making it slightly easier for claimants to seek legal representation.
The fee cap adjustment is part of the SSA’s broader efforts to streamline processes and improve access to benefits for applicants. Future increases will be tied to the annual cost-of-living adjustment, ensuring that the fee cap mirrors the current economic landscape.
The increase in the fee cap for Social Security legal representation signifies a potential shift in accessibility and quality of support for claimants. By addressing longstanding challenges and aligning with the agency’s goals of efficiency and fairness, this adjustment aims to enhance the overall experience for individuals navigating the Social Security system.
The official announcement of the fee cap increase will be published in the Federal Register this April.
