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GAO-03-1113R 1 (2003-09-05)

handle is hein.gao/gaobaamhg0001 and id is 1 raw text is: A Aco untability * Integrity * Reliability United States General Accounting Office Washington, D.C. 20548 September 5, 2003 The Honorable E. Clay Shaw, Jr. Chairman, Subcommittee on Social Security Committee on Ways and Means House of Representatives Subject: Social Security Administration: Subcommittee Questions Concerning Efforts to Automate the Disability Claims Process Dear Mr. Chairman: This letter responds to your August 12, 2003, request that we provide answers to questions relating to our July 24, 2003, testimony.' In that testimony, we discussed the risks that the Social Security Administration (SSA) faces in its efforts to automate its disability claims process. Your questions, along with our responses, follow. 1. The Social Security Administration (SSA) has indicated that the agency could potentially save $1 billion, at an estimated cost of approximately $900 million, by implementing an electronic disability folder. In your opinion, does the $900 million cost of this project appear to be a reasonable estimate? Is the $1 billion in savings a reasonable estimate? Is there a possibility that the cost of the project could balloon? Our work to date on SSA's February 2003 cost-benefit analysis raises concerns that SSA may have underestimated its accelerated electronic disability (AeDib) system costs. For example, the cost-benefit analysis did not fully consider the costs associated with certain critical information technology infrastructure elements supporting the nationwide rollout, such as scanning and imaging by the outsourced vendor, telecommunications, disaster recovery, and on-site retention and destruction of source documents, such as medical records. Because SSA has not yet fully estimated these costs, we are unclear about their magnitude. 1U.S. General Accounting Office, Electronic Disability Claims Processing: Social Security Administration's Accelerated Strategy Faces Significant Risks, GAO-03-984T (Washington, D.C.: July 24, 2003). GAO-03-1113R SSA Electronic Disability System Page 1

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