I-5-4-36.State of New York v. Sullivan
Purpose | |
Background | |
Guiding Principles | |
Definition of Class | |
Determination of Class Membership and Preadjudication Actions | |
Processing and Adjudication | |
Case Coding | |
Inquiries | |
State of New York District Court Decision Dated January 12, 1987 State of New York Order and Judgment Dated December 4, 1989 | |
Route Slip or Case FLag For Screening | |
Screening Sheet | |
Notice of Non-Class Membership | |
Route Slip or Case Flag For Routing Non-Class Member Claim Folders to the Manhattan DDS | |
Notice of Class Membership | |
Route Slip or Case Flag for DDS Readjudication | |
- Case Flag (for use by OAO after screening) | |
- Route Slip or Case Flag (for DDS or HO readjudication) | |
Route Slip or Case Flag (DDS or HO readjudication -- Court Case Remains Pending) | |
Route Slip or Case Flag (for HO Readjudication) | |
SAMPLE NOTICE LANGUAGE: CLAIMANT'S RIGHT TO OBJECT TO CONSOLIDATION OF A STATE OF NEW YORK CLAIM AT THE HEARING LEVEL | |
Office of Disability Guidelines for DDS Evaluation of State of New York Claims |
ISSUED: January 3, 1994; REVISED: January 30, 1996
I. Purpose
This Temporary Instruction (TI) sets forth the rules for implementing the December 4, 1989 order of the U.S. District Court for the Southern District of New York as affirmed by the United States Court of Appeals for the Second Circuit on June 27, 1990, in State of New York v. Sullivan. These rules govern the adjudication for New York State residents of disability claims involving ischemic heart disease, and certain other kinds of heart disease, when the file contains the results of an exercise test. These rules also describe the procedures for readjudicating class members' past claims for benefits and the processing of class members' claims pending as of February 2, 1994.
Adjudicators throughout the country must be familiar with this TI because State of New York class members who now reside outside of New York State must have their cases processed in accordance with the requirements of the court's order. With respect to the adjudication of disability claims of New York State residents in which evidence of a treadmill exercise test is considered, this instruction replaces any existing instructions that are not consistent with the district court's order.
II. Background
On March 11, 1985, the U.S. District Court for the Southern District of New York certified a class of individuals with cardiovascular impairments whose benefits “had been or will be” denied based on the Secretary's application of per se denial rules pertaining to treadmill exercise tests. On January 12, 1987, the district court granted plaintiffs' motion for partial summary judgment. State of New York v. Bowen, 655 F. Supp. 136 (S.D.N.Y. 1987). The court held that the Secretary's policy of giving priority to the results of treadmill exercise tests resulted in the exclusion of relevant medical evidence from both the consideration of whether a claimant's impairment meets or equals the Listings and the assessment of the claimant's residual functional capacity. The district court issued a final implementation order on December 4, 1989. State of New York v. Sullivan, No. 83 Civ. 5903 (RLC) (S.D.N.Y. Dec. 4, 1989). On June 27, 1990, the Second Circuit affirmed the district court's judgment and order. State of New York v. Sullivan, 906 F.2d 910 (2d Cir. 1990). The district court's December 4, 1989 order directs the Secretary to consider all relevant evidence in evaluating certain cardiovascular impairments, and requires the readjudication of class members' claims.
On August 30, 1990, the Secretary petitioned the Second Circuit for rehearing with a suggestion for rehearing in banc. On September 28, 1990, the circuit court denied the Secretary's petition. Accordingly, OHA is issuing these instructions to comply with the December 4, 1989 district court order as affirmed by the Second Circuit.
III. Guiding Principles
The district court's December 4, 1989 order sets forth detailed requirements, the pertinent parts of which are summarized below:
The Secretary is permanently enjoined from considering the results of a treadmill exercise test (TET) to the exclusion of other relevant evidence and from failing to consider all relevant evidence in assessing the disability of class members.
The Secretary shall fully develop and consider all relevant evidence, including newly-obtained evidence, in evaluating the disability claims of individuals with cardiovascular impairments.
The Secretary shall base his assessment of disability at steps two, three, four and five of the sequential evaluation process on an overall evaluation of the claimant's signs, symptoms and laboratory findings, and treating physicians' opinions.
The Secretary shall consider all signs, symptoms and laboratory findings demonstrated during treadmill exercise testing, irrespective of whether the test was completed.
In all cases in which an adjudicator, at any level, proposes to rely on the results of a TET to deny or terminate benefits, if the record contains inconsistent or contradictory signs, symptoms, laboratory findings, or treating physicians' opinions, the adjudicator shall provide a rationale justifying his reliance on the TET.
The Secretary is permanently enjoined from denying or terminating a claimant's disability benefits based primarily on the results of a TET which “shows the capacity for heavy work.” The Secretary shall base his assessment of disability for these claimants on all the relevant evidence in the claimant's claims file(s).
The district court's decision of January 12, 1987, and order of December 4, 1989, are reproduced in Attachment 1.
NOTE:
Attachment 13 excerpts guidelines prepared by the Office of Disability for evaluating State of New York claims at the lower administrative levels. These guidelines may or may not have direct applicability to the adjudicative questions arising in claims pending at the hearing office and Appeals Council levels. Those guidelines are nevertheless included as an attachment to provide information on how claims are developed and decided at the Disability Determination Service (DDS) level and because, in some instances, they may help illuminate a more general principle that also applies at the OHA level or provide guidance for developing and deciding disability claims involving ischemic heart disease and certain other kinds of heart disease. OHA decision makers are reminded that they must develop and consider all relevant evidence.
IV. Definition of Class
On March 11, 1985, the district court certified a class consisting of:
"All New York State residents with cardiovascular impairments whose applications or eligibility for SSDI or SSI disability benefits have been or will be denied or terminated by the application of per se denial rules on or after June 1, 1980."
The court further certified a subclass (henceforth referred to as the "State of New York class“ or ”class") of individuals from the above class consisting of those:
"Who have ischemic heart disease, hypertensive vascular disease, myocardiopathies, or rheumatic or syphilitic heart disease and whose disability benefits have been or will be denied or terminated based on the application of per se denial rules pertaining to treadmill exercise tests."
For purposes of implementing the court's December 4, 1989 order, the portion of the retroactive class entitled to receive notice consists of individuals:
whose title II or title XVI disability claims (including CDB, DWB, and SSI child) were: 1) denied or ceased at steps three, four, or five of the sequential evaluation process (including the corresponding medical improvement sequential evaluation process steps) at any level between June 1, 1980, and February 1, 1987; 2) coded “170” and denied or ceased at steps three, four, or five of the sequential evaluation process (including the corresponding medical improvement sequential evaluation process steps) from February 1, 1987, to February 2, 1994; 3) not coded “170,” but denied or ceased at steps three, four, or five of the sequential evaluation process (including the corresponding medical improvement sequential evaluation process steps) from February 1, 1987, to February 2, 1994 and who have been identified by the New York State Office of Disability Determinations to have had a TET; or 4) denied at step two between December 4, 1989, and February 2, 1994; and
who had ischemic heart disease, hypertensive vascular disease, myocardiopathies, or rheumatic or syphilitic heart disease; and
whose denial or cessation was based on an assessment of disability that considered the results of a TET; and
who resided in New York State at the time of the denial or cessation determination(s) which forms the basis for class membership.
The retroactive class entitled to readjudication generally consists of individuals who self-identify and request to have their claims reviewed under the terms of the district court's December 4, 1989 order, as well as those who respond to notices informing them of their right to readjudication. However, because the scope of the class entitled to readjudication relief effectively closes with the date of implementation of Agency instructions, individuals who receive an initial disability determination after February 2, 1994 — the date that training on the implementation instructions was completed in New York — are not class members and will not be entitled to readjudication.
NOTE:
Pursuant to Part VI.B.1. below, individuals determined to be class members who have claims pending at the hearing office level must be offered a supplemental hearing. Similarly, pursuant to Part VI.B.2. below, individuals determined to be class members who have claims pending before the Appeals Council are also entitled to a supplemental hearing.
Current claims must be processed according to these instructions and the injunction provisions of the district court's December 4 order.
For the following three categories of individuals, current claims must be screened for class membership (See Part V.D. below) and, as appropriate, processed accordingly (See Part VI.B. below).
OHA Identified Cases — Individuals entitled to receive notice who have claims pending at the OHA level are deemed to have requested relief under the district court's order. They are members of the retroactive class by virtue of having received a determination from DDS on or before February 2, 1994. Actual notice is not required.
Self Identified Cases — Individuals who self-identify as a potential State of New York class member have requested relief under the district court's order.
Alerted Cases — Individuals who respond to notices informing them of their right to readjudication have requested relief under the district court's order.
However, no other special class membership screening or identification is required for current claims.
NOTE:
Non-medical denials and cessations are excluded from the retroactive class.
Membership in another class does not preclude membership in the State of New York class.
The word “determination,” as used in this TI, includes both determinations made by the DDS and decisions made by an Administrative Law Judge or the Appeals Council.
For purposes of this TI, a current claim is defined as a claim that is still pending, or not otherwise administratively final, i.e., still within the appeal period, at the time action with respect to it is being considered. This includes claims with:
A hearing decision issued on or before February 2, 1994,
For which the appeals period had not expired as of February 2, 1994,
And the claimant perfects an appeal after February 2, 1994.
A federal court affirmation of an administrative determination rendered during the time period at issue in this class action will not affect a class member's right to relief under the district court's December 4 order.
V. Determination of Class Membership and Preadjudication Actions
A. Notices to Potential Class Members
Based on the foregoing class definition, SSA Central Office identified potential class members by computer run. In a mailing on May 17, 1993, SSA mailed notices to individuals in the retroactive class who were entitled to receive notices as described above in Part IV. The court has ordered SSA to use every good faith effort to complete screening and commence readjudication within a 24-month period.
Some potential State of New York class members had already requested relief in another class action, and thus SSA treated them as having already requested State of New York relief and did not send them separate State of New York notices. SSA will conduct multiple mailings.
B. Requests for Readjudication
Potential class members will have 120 days from the date of receipt of the notice to request a State of New York class membership determination and review by returning a reply form provided for this purpose. “Good cause” for missing the 120-day response deadline may be established and is provided for in the court's order. The order also provides that potential class members may demonstrate that they are responding within 120 days of their actual receipt of the notice. In addition, individuals may request relief at any field office, DDS office or OHA office, and may do so even without using the reply form. SSA Central Office will coordinate further efforts, as necessary, to locate the “undeliverables.”
C. Central Office Issuance of “Alerts” and Transfer of Files to Screening Component
SSA Central Office will generate potential class membership “alerts” on a monthly basis, in the order in which reply forms, and other requests for relief, are received. In general, the Office of Disability and International Operations (ODIO) or the program service centers (PSCs) will associate the alerts with any inactive folders and (1) screen for class membership or (2) forward them to OHA for screening if the most recent denial/cessation decision in the State of New York period was made at the OHA level (see D. below). If ODIO or the PSCs determine that a current claim is located in OHA (pending in the hearing office or Headquarters, or stored at Headquarters), they will forward the alert, along with any prior claim folder(s) not in OHA's possession, to OHA. All OHA jurisdiction alerts, and related prior claim folders, will be sent to the Office of Civil Actions (OCA), Division I, at the following address:
Office of Hearings and Appeals
Office of Civil Actions, Division I
5107 Leesburg Pike
Falls Church, VA 22041-3200
ATTN: State of New York Screening Unit Suite 601
NOTE:
In general, ODIO or the PSCs will coordinate any necessary reconstruction of prior claim folders.
A claim folder will be considered lost if it cannot be located within 120 days of the date the file search is initiated.
D. OHA Actions - Prescreening and Screening
In general, cases will be screened by ODIO or PSC, or OHA. The readjudicating component will be determined by the level of the most recent final administrative determination that makes the claimant a class member.
NOTE:
With limited exceptions, Administrative Law Judges will readjudicate class member claims last adjudicated by the Appeals Council.
Pre-screening Actions
Current claim Pending at the OHA Level as of February 2, 1994, No Determination Yet Issued
Class member claims pending at the OHA level as of February 2, 1994 must be adjudicated in accordance with these instructions and the State of New York injunction provisions. These claims are deemed to be the subject of a request for retroactive class relief. The pending claim must be formally screened for class membership, at the level at which the case is pending, in accordance with Part V.D.2. Claims screened-in as class member claims must be processed in accordance with Part VI.B.
Current Claim Pending at the OHA level; Claimant Received a Determination Issued After February 2, 1994; No Alert; No Self-Identification or Request for Relief under State of New York
The current claim should be adjudicated or reviewed in accordance with the State of New York injunction provisions; however, no other special processing is required.
No class membership screening, identification, or reporting is necessary.
Current Claim Pending at the OHA level; No Alert; but Claimant has Self-Identified as a Potential State of New York Class Member and Seeks Relief Under the Provisions of the District Court's December 4 Order
The current claim must be formally screened for class membership, at the level at which the case is pending, in accordance with Part V.D.2. Claims screened-in as class member claims must be processed in accordance with Part VI.B.
NOTE:
If claims in this category have already been screened in accordance with Part V.D.1.a. above, i.e., a claim pending at the OHA level as of February 2, 1994, no additional screening action would be necessary.
Current Claim Pending at the OHA level; Alert Received; No Prior State of New York Claim(s)
If OCA determines that the current claim is pending in a hearing office, OCA will forward the alert to the hearing office for screening. (See Attachment 2.)
If OCA determines that a current claim is pending before the Appeals Council, OCA will forward the alert to the appropriate OAO branch for screening. (See Attachment 2.)
If OCA determines that the current claim folder is in an OAO branch minidocket or Dockets and Files Branch (DFB), OCA will request the folder, associate it with the alert, and perform the screening.
If OCA is unable to locate the current claim folder within OHA, OCA will broaden its claim file search and arrange for folder retrieval, alert transfer or folder reconstruction as necessary.
Exception:
OCA will arrange for future folder retrieval but will not immediately retrieve any folder for any claim in which a favorable decision has been authorized, but not yet effectuated. In such instances the current claim will first be processed for payment before readjudication. After payment is made on any partially favorable decision, the effectuating component will send the folder to OCA to coordinate any action necessary for readjudication.
If OCA determines that a current claim is pending in court, it will notify the Office of the General Counsel (OGC) for coordination of the claimant option described in Part VI.C.3.b. below.
NOTE:
If claims in this category have already been screened in accordance with Part V.D.1.a. above, i.e., a claim pending at the OHA level as of February 2, 1994, no additional screening action would be necessary.
Current Claim Pending at the OHA level; Alert Received; Prior (Inactive) Potential State of New York Claim(s) Associated
If OCA determines that the current claim is pending in a hearing office, OCA will forward the alert and the prior claim folder(s) to the hearing office for screening. (See Attachment 2.)
If OCA determines that a current claim is pending before the Appeals Council, OCA will forward the alert and the prior claim folder(s) to the appropriate OAO branch for screening. (See Attachment 2.)
If OCA determines that the current claim folder is in an OAO branch minidocket or DFB, OCA will request the folder, associate it with the alert and prior claim folder(s), and perform the screening.
If OCA is unable to locate the current claim folder within OHA, OCA will broaden its claim file search and arrange for folder retrieval, alert transfer or folder reconstruction as necessary.
Exception:
OCA will arrange for future folder retrieval but will not immediately retrieve any folder for any claim in which a favorable decision has been authorized, but not yet effectuated. In such instances the current claim will first be processed for payment before readjudication. After payment is made on any partially favorable decision, the effectuating component will send the folder to OCA to coordinate action necessary for readjudication.
If OCA determines that a current claim is pending in court, it will notify the Office of the General Counsel (OGC) for coordination of the claimant option described in Part VI.C.3.b. below.
NOTE:
If claims in this category have already been screened in accordance with Part V.D.1.a. above, i.e., a claim pending at the OHA level as of February 2, 1994, no additional screening action would be necessary.
No Current Claim Pending at the OHA level; Alert Received; Prior State of New York Claim(s) Only
If there is no current claim pending, and an Administrative Law Judge or the Appeals Council made the most recent final determination that makes the claimant a potential class member, OCA will perform the State of New York class membership screening.
Screening
The screening component must associate the alert, if any, and any prior claim folder(s), with the claim folder(s) in its possession. The screening component will then complete the screening sheet. (See Attachment 3.)
NOTE:
All cases requiring class membership screening should be associated with an alert, except for those cases pending at the OHA level as of February 2, 1994, and those cases in which potential class members self-identify and seek State of New York court-ordered relief.
The individual performing the screening must place a copy of the screening sheet in the claim folder on the top right side of the file and forward the original to:
Office of Civil Actions
Division of Litigation Analysis and Implementation
5107 Leesburg Pike
Falls Church, VA 22041-3200ATTN: State of New York Coordinator
Suite 702If the hearing office or OAO branch receives an alert only or an alert associated with prior claim folder(s) for screening, and no longer has the current claim folder, it will return the alert and prior claim folder(s) to OCA for their further efforts to locate the current claim folder or to arrange for a transfer of jurisdiction.
E. OHA Actions: Post-Screening Actions; Notice of Screening Decision
Cases Determined Not to be Entitled to Relief as Class Members
Within 30 days of a determination that an individual is not entitled to relief as a class member, the hearing office or Headquarters staff must provide the individual and representative, if any, notice of nonclass membership (Attachment 4), and must place a copy of the notice in the claim folder.
NOTE:
In cases involving a current claim, screeners may need to modify the notice of nonclass membership to fit the circumstances and posture of the case.
An individual who has been determined “not entitled to relief as a class member” may dispute the determination, either directly or through legal services. The notice of nonclass membership explains how the individual may do this.
On completion of the screening component's actions, nonclass member claim folders must be retained for a 65-day hold period. (See Attachment 5.)
Cases Determined to be Class Members
Within 30 days of a determination that an individual is a class member, the hearing office or Headquarters staff must mail the individual and representative, if any, notice of class membership (Attachment 6) and must place a copy of the notice in the claim folder. See Part VI. below for adjudication instructions.
NOTE:
In cases involving a current claim, the notice of class membership may need to be modified to fit the circumstances and posture of the case.
VI. Processing and Adjudication
A. General
As noted in Parts IV. and V.D.1., current claims must be processed in accordance with these instructions and the prospective injunction provisions of the district court's December 4 order.
B. Processing and Adjudicating Class Member Current Claims; No Class Member Prior Claims
Hearing Office
After a determination of class membership in accordance with Part V. above, in conjunction with an alert, self-identification, or because the claim was pending at the OHA level as of February 2, 1994, the class member claim must be adjudicated in accordance with the guiding principles set forth in Part III. above. If the claimant is not formally determined (i.e., pursuant to a formal screening determination) to be a State of New York class member until after a hearing has been held, the claimant must be offered the opportunity for a supplemental hearing on the State of New York issues, unless the Administrative Law Judge is prepared to issue a fully favorable decision. The claimant must also be offered the opportunity for a hearing if the claimant previously waived the right to an oral hearing, unless the Administrative Law Judge is prepared to issue a fully favorable decision.
For class action reporting purposes, the hearing office must send copies of any decision issued in accordance with this TI to:
Office of Civil Actions
Division of Litigation Analysis and Implementation
5107 Leesburg Pike
Falls Church, VA 22041-3200
ATTN: State of New York Coordinator
Suite 702
and
Litigation Staff
Office of the Deputy Commissioner for Programs
3-K-26 Operations
6401 Security Boulevard
Baltimore, Maryland 21235
ATTN: State of New York Coordinator
and
Legal Services for the Elderly
Attention: "OHA decision"
130 W. 42nd St., 17th Floor
New York, NY 10036NOTE:
For current claims, hearing offices need only forward copies of decisions in accordance with the foregoing instruction in cases in which the claimant has been formally determined to be a State of New York class member as a result of formal screening.
Headquarters
After a determination of class membership in accordance with Part V. above, in conjunction with an alert, self-identification, or because the claim was pending at the OHA level as of February 2, 1994, the class member claim must be processed in accordance with the guiding principles set forth in Part III. above.
OAO/Appeals Council Action
If the claimant is first formally determined to be a State of New York class member through OAO screening in conjunction with a pending request for review or pending request for reopening, the Appeals Council will remand his or her claim to an Administrative Law Judge for a supplemental hearing on the State of New York issues, unless the Appeals Council intends to issue a fully favorable decision. If the Appeals Council issues a decision, copies of the decision must be provided as described in B.1. above.
If the claimant was previously formally determined to be a State of New York class member at the hearing office level, the Appeals Council must consider in conjunction with a pending request for review or pending request for reopening whether the claimant was appropriately offered the opportunity for a supplemental hearing on the State of New York issues. If the hearing office did not appropriately offer the opportunity for a supplemental hearing on the State of New York issues, the Appeals Council will remand the claim to an Administrative Law Judge for a supplemental hearing on the State of New York issues, unless the Appeals Council intends to issue a fully favorable decision.
OCA Action
If the claimant is first formally determined to be a State of New York class member through OCA screening of a claim folder stored pending expiration of an appeals period, the Appeals Council will remand the claim as described in a. above. If the claimant is first formally determined to be a class member through OCA screening of the transcript or claim folder of a case pending in court, the claimant will be offered the option described in C.3.b. below.
C. Processing and Adjudicating Class Member Prior and Current Claims (Consolidation Procedures)
General
If a class member has a current claim pending at any administrative level, all other State of New York claims may be consolidated with the current claim at the level at which the current claim is pending, if the criteria contained in this section C. are met.
EXCEPTION:
In general, consolidation will not occur at the Appeals Council Level (See Part VI.C.3.a. below for more specific instructions in this regard).
NOTE:
To the extent that inconsistent procedures for the handling of class members' claims are dictated by these consolidation procedures and by the general routing and screening procedures set forth in Part V.B., the consolidation procedures take precedence. In addition, unless formally screened and determined to be a class member, nothing in the order shall be construed to require the remand of an administrative appeal or request for judicial review.
Hearing Office
If a current claim is pending in the hearing office and there is a prior State of New York claim as well, the prior claim and the current claim will be consolidated at the hearing level if there is a common issue. However, the claims will not be consolidated if the claimant objects to consolidation.
The Administrative Law Judge must:
Review the claims to determine if a common issue exists.
If a common issue does not exist:
The hearing office must determine whether the prior State of New York claim is OHA or DDS jurisdiction. (See Parts VI.D. and F. below for guidance in determining jurisdiction.)
If the prior claim is also OHA jurisdiction, the hearing office shall schedule separate hearings for each claim and the ALJ shall issue separate decisions.
If the prior claim is DDS jurisdiction, the hearing office will route the prior claim to the servicing DDS for any necessary State of New York readjudication action (Attachment 7). The Administrative Law Judge will then take the action necessary to complete the record and issue a decision on the current claim.
If a common issue exists:
The Administrative Law Judge must follow the steps below:
Send a notice of hearing pursuant to 20 CFR §§ 404.946(b)(2) and/or 416.1446(b)(2), indicating that the Administrative Law Judge will review a new issue.
Inform the claimant in the notice that the Administrative Law Judge will: 1) consider whether the claimant was disabled at any time during the period considered in the prior determination(s) that is subject to readjudication, and 2) consider disability from the earliest alleged onset date through the effective life of the current application (date last insured or the date of the current administrative determination, as appropriate).
Provide the claimant with the opportunity to object to the proposed consolidation. (See Attachment 12.)
If the claimant objects to the consolidation, the hearing office shall forward the prior State of New York claim (even if it is an OHA jurisdiction case) to the servicing DDS for any necessary readjudication action (Attachment 7). The Administrative Law Judge will then take the action necessary to complete the record and issue a decision on the current claim.
If the claimant does not object to the consolidation, the Administrative Law Judge shall:
Proceed with consolidated hearing proceedings or offer a supplemental hearing if a hearing has already been held and the Administrative Law Judge is not prepared to issue a fully favorable decision which includes the State of New York time period.
Issue one decision which addresses both the issues raised by the request for hearing in the current claim and those raised by the State of New York readjudication.
Include in the notice of decision, if the decision is less than fully favorable, a statement that the claimant has the right to appeal the decision and/or reapply for benefits if he believes that his condition has worsened or will worsen. The notice must also include a statement explaining that filing a new application is not the same as appealing the decision because the claimant might lose benefits if he/she files a new application instead of pursuing an appeal.
For class action reporting purposes, the hearing office must send copies of the decision to the addresses shown in Part VI.B.1. above.
OHA Headquarters
OAO/Appeals Council Action
Consolidation will not occur at the Appeals Council level if a current claim is pending, except for consolidation in the circumstances identified under the second type of Appeals Council action described below, i.e., the Appeals Council intends to issue a favorable decision on the current claim and no State of New York issues will remain.
The OAO branch will associate the alert and prior claim folders with the current claim folder and attach a flag (Attachment 8) to the outside of the combined folders.
Appeals Council action on a prior class member claim will occur as follows, based on the nature of the action taken on the current claim:
The Appeals Council intends to dismiss, deny review, or issue a denial decision on the current claim
The Appeals Council will process the current claim using standard procedures unless the claimant has been formally determined to be a State of New York class member pursuant to Part V. in connection with the current claim.
If the claimant has been formally determined to be a State of New York class member in connection with the current claim, the Appeals Council will process the claim in accordance with Part VI.B.2.a. above. The remand order must direct the Administrative Law Judge to follow the State of New York consolidation procedures. (See Part VI.C.2. above.)
If the claimant has not been formally determined to be a State of New York class member in connection with the current claim, the Appeals Council should proceed with its intended action and OAO must attach a flag (Attachment 9) to the combined folders. If no civil action is filed, after expiration of the retention period, OAO must ship the combined folders to the appropriate readjudicating component (either a hearing office or DDS, as determined by other provisions of this instruction) for State of New York review of the prior class member claim.
The Appeals Council intends to issue a favorable decision on the current claim — no State of New York issues will remain
If the Appeals Council intends to issue a favorable decision on a current claim, and this decision will be fully favorable with respect to the prior State of New York claim, the Council should proceed with its intended action.
The Council's decision must advise the claimant that it includes the State of New York readjudication of the prior claim.
For class action reporting purposes, the Appeals Council must send copies of the decision to the addresses shown in Part VI.B.1. above.
The Appeals Council intends to issue a favorable decision on the current claim — State of New York issues will remain
If the Appeals Council intends to issue a favorable decision on the current claim which would not be fully favorable with respect to the prior State of New York claim, the Council should proceed with its intended action. OAO must include the following language on the transmittal sheet which forwards the case for effectuation:
"State of New York readjudication needed — following effectuation, forward the attached combined folders to (insert address of the readjudicating component — New York State DDS, servicing DDS address if claimant now resides outside New York State, or hearing office)."
The Appeals Council intends to remand the current claim to an Administrative Law Judge
If the Appeals Council intends to remand the current claim to an Administrative Law Judge, it should proceed with its intended action.
The remand order must direct the Administrative Law Judge to follow the State of New York consolidation procedures. (See Part VI.C.2. above.)
OCA/Court Level Action
If a current claim is pending at the district or circuit court level, the Assistant U.S. Attorney will offer the claimant the option of receiving administrative relief as a State of New York class member or proceeding with his individual court case. (The Assistant U.S. Attorney will provide each such class member with a notice explaining this option.)
If the claimant elects administrative relief as a State of New York class member, following remand from the court, OCA Division I will route the alert and all folders for both the current and prior claim(s) to the hearing office. OCA will direct the Administrative Law Judge to follow the State of New York consolidation procedures. (See Part VI.C.2. above.)
If the claimant chooses to remain in court with his current claim, OCA Division I will route the alert and prior class member claim folder(s) to the appropriate readjudicating component (either a hearing office or DDS, as determined by other provisions of this instruction) for State of New York readjudication. (See Attachment 10.) If a hearing office is the readjudicating component, the Administrative Law Judge shall issue a recommended decision. (See HALLEX I-2-8-15.)
NOTE:
If an individual decides to proceed separately with his or her individual court case, this decision will not affect his or her right as a State of New York class member to have any other State of New York claim(s) adjudicated.
D. Processing and Adjudicating Class Member Prior Claims; No Current Claim Pending
If there is no current claim pending, and an Administrative Law Judge or the Appeals Council made a decision on the most recent prior claim that forms the basis for class membership, an Administrative Law Judge will perform the State of New York readjudication.
After screening and a determination of class membership, OCA Division I will route the alert and claim folder(s) to the hearing office for State of New York readjudication. (See Attachment 11.)
NOTE:
If a class member has more than one administrative determination requiring readjudication, the claims will be consolidated and readjudicated at the level of adjudication of the most recent administrative determination which makes the individual a State of New York class member.
Class members retain all rights to further administrative and judicial review following readjudication.
E. Period to be Adjudicated
The period to be adjudicated will vary, depending on whether the claimant has a current claim pending and on whether a cessation is involved, as follows:
No Current Claim or Consolidation
Prior Claim — Initial Entitlement
For claimants who are class members by virtue of a prior denial, the DDS or OHA readjudication must consider the period of time at issue in the administrative determination(s) that forms the basis of the claimant's class membership. If the DDS or OHA readjudication results in a favorable determination, the DDS or OHA must also consider, under the medical improvement review standard, whether the class member's disability continues through the date of the readjudication (or through the date of onset of disability established in any allowance on a subsequent application). OHA or DDS must fully develop the record for the relevant time period.
Prior Claim — Cessation
For claimants who are class members by virtue of a determination ceasing disability benefits, the DDS or OHA readjudication must consider eligibility for benefits from the date benefits were ceased through the date of the readjudication. The DDS or OHA must apply the medical improvement review standard and must fully develop the record.
NOTE:
In some cases, the claimant may have received an allowance on a subsequent claim after a prior claim for initial entitlement was denied or after a prior award of benefits was ceased. In these cases, in the absence of evidence to the contrary, SSA adjudicators will assume that the favorable decision on the subsequent claim was correct and will limit development and readjudication to the period up to the date of onset established in connection with the subsequent claim. However, if new evidence submitted or developed in connection with the State of New York readjudication raises a question of continuing disability, SSA adjudicators will not be barred from considering and deciding the issue under the normal continuing disability review procedures and standard. If OHA identifies a question of continuing disability in the course of adjudicating a State of New York claim, it will not attempt to introduce, develop or decide that issue in connection with the State of New York adjudication. Instead, OHA will separately complete its adjudication of the claim(s) that is pending before it and will then refer the issue of continuing disability to the appropriate SSA district or branch office for continuing disability review (CDR) action. Similarly, OHA will not stay its adjudication of a State of New York claim if a CDR is already pending. Instead, it will complete its action with respect to the State of New York readjudication and forward a copy of the result of its action to the SSA component conducting the CDR for that component's information.
Prior and Current Claims Consolidated
For class members with a current claim pending that will be consolidated with the State of New York readjudication of a prior claim(s), the DDS or OHA adjudication must consider the period from the earliest alleged onset date through the effective life of the current application (date last insured or the date of the current administrative determination, as appropriate).
F. Cases Readjudicated by DDS
Unless consolidated at the OHA level pursuant to the above-described consolidation instructions, DDS will have readjudication responsibility for class member cases in which DDS made the most recent final administrative determination that makes the individual a class member.
If no current claim is pending, the DDS will readjudicate at the reconsideration level and the individual will have the right to appeal directly to the hearing level. If a current claim and prior claim(s) are consolidated at DDS, the consolidation will occur at the level of the current claim (initial or reconsideration). Individuals retain full appeal rights and will have the right to appeal an adverse determination in their consolidated claims to the next administrative level (reconsideration or hearing).
If the claimant files a request for hearing on the readjudicated claim, the hearing office must advise the claimant, in the notice of hearing, of the period at issue (See Part E. above) and the right to submit new evidence relating to that period. The claimant also must be advised, in the notice of the Administrative Law Judge's decision, of the opportunity to file a new application if the claimant believes that his or her alleged impairment(s) became worse after the readjudicated period or if he or she has a new impairment. The notice must also include a statement explaining that filing a new application is not the same as appealing the decision because the claimant might lose benefits if he/she files a new application instead of pursuing an appeal.
If new evidence is submitted which relates only to the period after the date ruled through in the State of New York readjudication and there is no current claim, and the Administrative Law Judge does not find the claimant disabled as of the ending date of the readjudicated period, the Administrative Law Judge must not consider the new evidence in the State of New York decision; rather, the decision should explain why the new evidence was not considered and the notice of the State of New York decision must advise the claimant of the right to file a new application. Again, the notice must also include a statement explaining that filing a new application is not the same as appealing the decision because the claimant might lose benefits if he/she files a new application instead of pursuing an appeal.
VII. Case Coding
The hearing office should code prior claims into the Hearing Office Tracking System (HOTS) and the OHA Case Control System (OHA CCS) as reopenings. If the prior claim is consolidated with a current claim already pending at the hearing level (See Part VI.C.), it should not be coded as a separate hearing request. Instead, the hearing type on the current claim should be changed to a reopening.
To identify class member cases in HOTS, the hearing office must code “NY” in the “Class Action” field. No special identification codes will be used in the OHA CCS.
VIII. Inquiries
Hearing office personnel should contact their Regional Office. Regional Office personnel should contact the Division of Field Practices and Procedures in the Office of the Chief Administrative Law Judge at (703) 305-0022.