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Senate investigating 9 insurance companies for Social Security disability fraud


Posted on Aug 28, 2008

The Senate is investigating whether insurance companies are forcing able-bodied people to apply for Social Security disability benefits, worsening a severe backlog in the government program while increasing their own profits.

Senator Charles E. Grassley of Iowa, the senior Republican on the Finance Committee, has sent letters to nine insurers, requesting detailed information about their handling of disability claims “as part of the committee’s ongoing inquiry into these important matters.”

Sick and injured people must often wait more than a year before their claims can be decided by one of Social Security’s administrative law judges, a delay Mr. Grassley called “abominable.”

“The last thing those who rely on Social Security need is for insurance companies to be clogging up the system by forcing ineligible applicants to apply,” he said.

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