The Commissioner of Social Security issued a new ruling this week, SSR 11-1p, that went into effect on Thursday, July 29, 2011. It eliminates subsequent disability applications while a claim is pending before the Appeals Council. In other words, if your claim was denied by an Administrative Law Judge, you can appeal the decision to the Appeals Council, but you cannot file a new claim until the Appeals Council has issued its decision. This creates a terrible dilemma for some claimants. The Appeals Council can take up to two years to decide an appeal. If you believe the judge’s decision was incorrect and wish to pursue your entire claim for back benefits you can appeal, but in doing so you give up the right to pursue a new claim until that lengthy and uncertain process is over. Previously, filing a new claim allowed you to preserve the back benefits that accrued while the appeal was pending. Now you cannot preserve your claim for that period of back benefits while the appeal is pending. If you win your appeal, there is no problem. However, if you lose your appeal, you’re back at square one.
I’ve simplified things a bit for purposes of this post. There are some exceptions. For instance, if the claim on appeal is for Title II benefits (SSDI), you may be able to file a new claim for Title XVI benefits (SSI). The new rule also does not appear to foreclose a new application for beneftis if your case is in federal court (after the Appeals Council denial).
The ruling is a game-changer for Social Security disability and SSI claimants. If you receive a denial from an ALJ, you should definitely consult with an attorney about whether to appeal. There are benefits to appealing, but now there are risks too.



