New Social Security Rule Prohibits Multiple Pending Applications

On July 28, 2011, the Social Security Administration changed the way it handles claims after you receive an unfavorable decision. Before this change, I would advise clients to do the following:  I would recommend filing a request for review of the ALJ decision with the Appeals Council AND filing a new claim for benefits.

The reason for having two claims pending at the same time was that the Appeals Council—which handles requests for review—required a minimum of 12 months to begin working on the request for review. At the same time, filing a new claim can sometimes result in a quicker decision, provided that Disability Determination Services makes a favorable determination.

After the change in Social Security’s policy, I will have to advise clients either to file a request for review with the Appeals Council, or to file a new claim for benefits and accept the unfavorable determination on the prior claim. Either way, the client accepts significant losses: if the client files a request for review, the client cannot file a new claim for benefits and may be giving up the opportunity for receiving early payment decision. If the client gives up the opportunity of filing a request for review and files a new claim for benefits, the new claim will only apply to the period since the unfavorable ALJ decision, meaning that the client is giving up claim for benefits prior to the date of the unfavorable ALJ decision.

There are some exceptions to this policy that permit a client to pursue a new claim while at the same time permitting further review to the Appeals Council, but these are very narrow. If you are unfortunate enough to receive an unfavorable ALJ decision, you should discuss with your attorney the merits of requesting review versus filing a new claim. Through careful consideration, you may be able to maximize your chance of receiving a favorable payment decision.