Social Security Administration (SSA) has announced a major operational change that will change how disability benefit reviews are handled across the country.
The agency said this is intended to speed up decision-making, improve accountability, and streamline the review process for millions of Americans who receive or apply for disability benefits.
SSA to take full control of disability reviews
Under the new system, the SSA will bring medical Continuing Disability Reviews (CDRs) fully in-house. These reviews are legally required periodic checks that determine whether individuals receiving disability benefits remain eligible for payments.
Until now, medical CDRs were typically handled by state Disability Determination Services (DDS) offices working on behalf of the federal government. With the new shift, those reviews will instead be managed directly by the SSA’s federal Disability Case Review (DCR) operation. SSA Commissioner Frank J. Bisignano said the change will strengthen oversight and improve the agency’s operations.
“By centralising medical continuing disability reviews under Social Security, we are taking another important step towards operational excellence, reducing improper payments, and providing best-in-class service to Americans in critical need of support,” Bisignano told NewsWeek.
What continuing disability reviews mean for beneficiaries
Continuing Disability Reviews are periodic evaluations required by law to confirm that people receiving disability benefits still meet medical eligibility requirements.
While non-medical reviews have already been handled directly by the SSA, medical reviews were previously conducted by state DDS agencies. With the new policy, both types of reviews will now be managed at the federal level.
According to the SSA, this centralised model will ensure more consistent decision-making and clearer accountability for disability determinations nationwide.
How the change may speed up disability decisions
SSA also said the shift could help reduce delays for people applying for disability benefits. By moving CDRs to the federal Disability Case Review unit, state DDS offices will be able to focus more heavily on processing initial disability claims and reconsideration cases. These cases often involve long wait times for applicants seeking benefits.
The agency reported that the backlog of initial disability claims reached more than 1.26 million pending cases in June 2024. As of February this year, the backlog has fallen to about 831,000 cases, a decline of more than 33 percent.
Move toward a national workload system
Financial expert Michael Ryan said cases may increasingly be routed across the country rather than handled mainly by local offices.
“SSA is moving away from locally managed field offices toward a centralized national workload model. Cases and appointments get routed broadly instead of being handled mainly by your local office,” Ryan told Newsweek.
He added that the new approach could help balance workloads between offices, reduce bottlenecks, and create more appointment availability for applicants.
The operational shift does not change how disability benefits are taxed under IRS rules. The tax treatment of disability income depends largely on the source of the payments.
Workers’ compensation benefits and payments from the Department of Veterans Affairs are generally not taxable. Supplemental Security Income (SSI), which is based on financial need, is also tax-exempt.
However, benefits from employer-paid disability insurance plans are usually taxable if the premiums were paid with pre-tax dollars.
Social Security Disability Insurance (SSDI) may also be taxable if a beneficiary’s total income exceeds certain thresholds.