Social Security Administration Increases Attorney Fee Cap

Acting Social Security Administration (SSA) Commissioner, Dr. Kilolo Kijakazi, recently announced that the cap on attorney fees in disability claims has been raised from $6,000 to $7,200, effective November 30, 2022. The last time the attorney fee cap was raised was in 2009. For Social Security disability (SSDI) and Supplemental Security Income (SSI) claimants, the current structure to secure representation in a disability claim is 25% of any past due benefits with a maximum fee of $6,000 (whichever is less). As of November 30, 2022, the fee structure will still be 25% of any past due benefits, but the maximum fee will now be $7,200. Most attorney Fee Agreements include an “accelerator clause” allowing attorney fees to be paid at the current maximum fee cap rate even if the Fee Agreement was signed at the now lower $6,000 rate. The fee cap was raised in an effort to help Social Security disability representatives combat rising inflation rates and to account for the past 13 years in which no increase in the attorney fee cap was approved by Congress. Should you have any questions on how the new attorney fee cap may impact your Fee Agreement on a pending SSDI or SSI claim, please contact the Social Security disability lawyers at Henson Fuerst today.