ADDICTS ON DISABILITY OVERESTIMATED

WASHINGTON (Associated Press) Social Security Administration officials
Tuesday defended the agency from criticism that it had mishandled efforts
to purge alcoholics and drug addicts from the disability rolls.

The agency responded that its findings indicated the number of alcoholics
and drug addicts mistakenly receiving benefits was much smaller than
originally estimated in an independent audit.

"The results are that a total of 339 ... were found to be improperly
receiving benefits," Kenneth Nibali, associate commissioner for disability
for the Social Security Administration, told the House Budget Committee's
Task Force on Welfare Tuesday. "In retrospect we can see that we should
have initially reviewed even those cases."

Nibali's comments were in response to a May report by the agency's
inspector general, estimating that about 3,190 individuals were incorrectly
paid $38.7 million in disability and Social Security benefits. He said the
agency did find just over 2,000 others in its review that were released
from the rolls for unrelated reasons.

"We took action as soon as the Inspector General brought this to our
attention," Nibali said.

Congress in 1996 passed a law eliminating drug addiction and alcoholism as
legal qualifications for Social Security and disability benefits.

Substance abusers who have other conditions that qualify them for benefits
remain eligible, but eligibility was terminated for those who would not be
disabled if they stopped abusing drugs or alcohol.

Shortly after the law was passed, the agency notified more than 209,000
beneficiaries that their benefits would be terminated. By the end of 1998,
benefits for those more than half of those individuals had stopped. The
others were determined to be still eligible for assistance.

Lawmakers Tuesday questioned the agency on why it took so long to clear the
rolls.

"Each dollar used inappropriately in payments to these people could have
been better used in their treatment or to provide assistance to other
disabled individuals," said Rep. Jim Nussle, chairman of the task force.