State audit exposes severe staffing shortage and backlog in South Carolina’s disability claims system
October 7, 2026
A newly released state legislative audit has pulled back the curtain on South Carolina’s strained disability determination system, revealing severe staffing declines, bureaucratic hiring bottlenecks, and extended processing delays for thousands of vulnerable residents seeking essential benefits.
The performance report, conducted by the South Carolina Legislative Audit Council (LAC) at the request of state lawmakers on the House Government Efficiency and Legislative Oversight Committee, examined operations within Disability Determination Services (DDS). Housed under the S.C. Vocational Rehabilitation Department, the agency works in tandem with the federal Social Security Administration (SSA) to evaluate medical eligibility for Supplemental Security Income (SSI) and Social Security Disability Insurance (SSDI) claims.
According to the audit findings, the agency suffered a 35% drop in front-line disability claims examiners between 2021 and mid-2026, losing 114 examiners over that five-year span.
The audit identified federal administrative constraints as a central driver of the workforce crisis. Because DDS must secure federal authorization through the SSA to fill vacant positions, the hiring and onboarding process has frequently faced prolonged delays. Auditors also cited high job turnover, the rollout of a complex new nationwide case management system, and post-pandemic disruptions as compounding factors that left remaining staff handling unsustainable caseloads.
For South Carolinians who can no longer work due to severe, long-term medical conditions, the examiner shortage translates directly to prolonged waiting periods for critical financial and medical support.
Lawmakers on oversight subcommittees emphasized that these administrative delays carry profound human consequences, noting that applicants trapped in processing backlogs often endure months of uncertainty without income while waiting for their claims to be assigned and reviewed.
To address the backlog, state evaluators recommended several operational overhauls, including:
- Enhancing recruitment incentives and retention packages to stabilize examiner headcount
- Streamlining federal approval pipelines to expedite hiring
- Expanding digital automation tools to accelerate medical record retrieval and preliminary file reviews
- Strengthening data transparency so applicants receive clearer updates on estimated wait times
The findings are expected to prompt further legislative discussion at the Statehouse ahead of the upcoming legislative session, as lawmakers push for systemic reforms to ensure South Carolina applicants receive timely determinations on the benefits they depend upon.
