The first question that most new clients ask is “How much do you charge?” For Social Security Disability/Supplemental Security Income (“SSI”) cases, we regularly represents clients on a contingency fee basis. This means that we only receive a fee if our client is approved for Social Security Disability and/or SSI payments. The fee is based on the amount of money that a person is owed by the Social Security Administration if they are approved. Federal law limits the amount that can be charged for representation in a Social Security Disability claim to the lesser of 25% of an individual’s past-due benefits or a maximum fee of $6,000. Our fee is based on all benefits our client and any dependents are entitled to from the date their disability began until the date that they are approved for benefits. We do not receive any fee from the monthly benefits that our clients receive after they are approved. If our client is not approved for benefits, we do not receive a fee for representation.
Normally, our fee is withheld from our client’s past-due benefits and directly paid to our office by the Social Security Administration after our client is approved. To protect people who are applying for Social Security Disability/SSI benefits, the Social Security Administration must first approve any fee that is charged. We are not able to charge a client a fee unless we receive written authorization from the Social Security Administration. Social Security also allows a client to submit a written objection if an unfair fee is being charged. Since attorney fees in Social Security Disability and SSI claims are regulated by federal law, the majority of Social Security attorneys throughout the United States charge the same fees for Social Security claims.
Although we will not receive a fee if a client is not approved for Social Security Disability Insurance/SSI benefits, we do require that clients repay any costs that we incur. Costs are normally limited to medical records, medical opinions, copying, and postage expenses. We explain to clients (during their initial appointment) that additional medical documentation is normally required in order to prove that they are disabled. To reduce costs, we provide clients with the option of requesting their own records or medical opinions. The amount of costs that we incur while representing clients depends on the stage of the disability process and the number of treating physicians. Whenever we pay for records directly on behalf of clients, we send them a copy of the payment letter so that expenses can be tracked.
To reduce costs for clients, we normally provide medical opinion forms for clients to take to their treating physicians for completion. In our experience, the most expensive evidence to obtain is a medical opinion. In Delaware, doctors charge an average of $150 to provide a medical opinion. Although we explain to doctors that our clients are responsible for repaying any cost we incur, we have found clients can often save substantial money by taking forms directly to their physicians. Doctors are much more reluctant to charge their patients to complete a form during a scheduled appointment.
Since costs are not part of the fee, we send our clients an invoice for all costs incurred, regardless of the outcome of the case. The Social Security Administration does not reimburse us for expenses, so clients are responsible for repaying costs even if the Social Security Administration sends us our fee. We limit the costs we incur by only requesting those records that Social Security was unable to obtain.
At the initial and reconsideration levels of the Social Security Disability process, we provide details about a client’s treatment to the Disability Determination Service so that records can be obtained free of charge. If the Disability Determination Service does not receive a response from a treating doctor, we will request the records on the client’s behalf to avoid a denial due to incomplete evidence.
At the Administrative Law Judge level, the Social Security Administration will normally not request updated records. We review the Social Security Administration file with clients, and we determine which records are needed for the hearing. We will provide clients with an opportunity prior to the hearing to request necessary records directly from their physicians, or we will request relevant medical records. Our goal in every Social Security disability claim is to incur only limited costs, and we always notify clients if we believe that a doctor is charging an unreasonable rate for records.
However, if we find that a client’s Social Security Disability/SSI claim presents unique problems, we may be unable to represent the individual on a contingency fee basis. Unique situations that we have encountered include situations where: a client has a pre-existing overpayment with the Social Security Administration; a client owes substantial federal income taxes; a client is receiving workers’ compensation payments that would eliminate eligibility for monthly payments from the Social Security Administration; and/or, it is likely that a client will be approved for payments prior to the receipt of any past-due benefits. When we recognize that one of these situations will occur, we explain the situation to the client and discuss alternative fee arrangements. Every client that we agree to help signs a written fee agreement and has an opportunity to ask us questions prior to our representation beginning.
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