Step 3 is when Social Security sends your case to a state agency for medical review

After you submit your process and Social Security processes it (Step 2), your case moves to Disability information Services, or DDS. This is a state agency that works under contract with Social Security. DDS is where a doctor or psychologist who has never met you will review your medical records to decide whether your condition meets Social Security's definition of disability.

This step typically takes 30 to 90 days, though it can take longer if DDS needs more information from your doctors. You will not meet anyone in person during Step 3 unless DDS asks you to attend a consultative examination — a medical appointment they arrange and pay for if they need more recent medical evidence.

Step 3 is the most common place where applications are denied. DDS makes the decision based entirely on paperwork: your medical records, test results, and what your doctors have written about your condition. If DDS approves you, your case goes back to Social Security for a final check. If DDS denies you, you receive a written decision explaining why and information about how to appeal.

Key Takeaways

  • A state agency called Disability information Services reviews your medical records to decide whether your condition meets Social Security's disability definition.
  • You do not attend a hearing or meet with anyone during Step 3 unless DDS requests a consultative examination.
  • Step 3 usually takes 30 to 90 days, but can take longer if DDS asks your doctors for more information.
  • DDS makes its decision based on your medical records alone, so the strength of your medical evidence directly affects the outcome.
  • If DDS denies your case, you will receive a written decision that explains the reason and tells you how to file an appeal.

What DDS actually looks for in your medical records

DDS does not decide whether you are sick or in pain. It decides whether your medical condition is severe enough that you cannot work at any job, anywhere, for at least 12 months. This is a specific legal standard, and it is much stricter than most people expect.

The DDS doctor or psychologist will look for objective medical evidence — test results, imaging, lab work, and clinical findings that a doctor can measure or observe. A diagnosis alone is not enough. For example, saying you have depression is not enough; DDS needs to see records showing how severe your depression is, what treatment you have tried, and how it affects your ability to function.

DDS also looks at what your own doctors have written about your limitations. If your treating doctor has documented that you cannot sit for more than two hours, or that you have severe memory problems, or that you have panic attacks that prevent you from being around other people, those statements carry weight. But DDS will not accept a doctor's statement that straightforward says you are disabled; the statement must describe specific functional limitations.

When DDS asks for a consultative examination

If your medical records are incomplete or outdated, DDS may schedule you for a consultative examination, usually called a CE. DDS pays for this appointment and chooses the doctor. The doctor is not your treating physician — it is someone DDS contracts with to fill gaps in the medical evidence.

You will receive a notice in the mail telling you the date, time, and location of the exam, usually with at least two weeks' notice. You should attend this appointment. If you cannot attend, call the number on the notice and ask to reschedule. Missing a consultative exam without contacting DDS can result in a denial.

The consultative exam is brief — usually 20 to 30 minutes. The doctor will ask about your medical history, current symptoms, and how your condition affects your daily life. They will perform a basic physical or mental status exam. The doctor then sends a report to DDS. This report becomes part of your file and influences DDS's decision.

How long Step 3 actually takes and what affects the timeline

The official timeframe is 30 to 90 days from the time DDS receives your case. In practice, many cases take longer. The main reasons are incomplete medical records, delays in getting records from your doctors, and the volume of cases DDS is processing at that moment.

If DDS needs medical records from your doctors and those doctors are slow to respond, the clock keeps running. You can speed this up by contacting your doctors' offices yourself and asking them to send your records to DDS. Ask for the fax number or mailing address from the notice DDS sent you, and provide it to your doctor's office.

If DDS schedules a consultative exam, that adds time to the process. The exam itself may take a week or two to schedule, and then another week or two for the doctor to write and submit the report. Cases that require a CE often take 60 to 120 days total.

What happens if DDS approves your case

If DDS approves you, your case returns to Social Security for a final administrative check. This is usually quick — a few days to a week. Social Security then sends you an approval letter and information about your benefits, including the month your benefits will begin and the amount you will receive each month.

For SSDI (Social Security Disability Insurance), benefits usually begin the month after you are approved, though the exact timing depends on when your disability began. For SSI (Supplemental Security Income), there may be additional steps to verify your income and resources before benefits start.

What happens if DDS denies your case

If DDS denies you, you will receive a written decision in the mail. The letter will explain which of your conditions DDS reviewed, why DDS found it did not meet the disability standard, and what evidence DDS used to make that decision.

You have the right to appeal this decision. The first level of appeal is called reconsideration. You must request reconsideration within 60 days of the denial letter. During reconsideration, a different DDS examiner reviews your case, usually with new or updated medical evidence that you provide.

If you are denied again after reconsideration, the next step is a hearing before an Administrative Law Judge, or ALJ. This is where you can present your case in person, bring witnesses, and have a lawyer represent you if you choose. Many people who were denied at Steps 2 and 3 are approved at the hearing level.

How to prepare for Step 3 while you wait

While DDS is reviewing your case, continue treating with your doctors. New medical records created during this time can be added to your file if DDS has not yet made a decision. Keep copies of all medical records, test results, and appointment summaries for your own records.

If you have not already done so, ask your doctors to write a statement describing your functional limitations — what you cannot do because of your condition. This statement should be specific: instead of "I cannot work," it should say something like "Due to my back pain and limited mobility, the patient cannot sit for more than one hour at a time, cannot lift more than 10 pounds, and cannot climb stairs."

Do not contact DDS repeatedly asking for a status update. DDS will notify you when a decision is made. If you have new medical evidence or information that is important to your case, you can send it to DDS in writing, but keep it brief and relevant.

Frequently Asked Questions

Can I work while DDS is reviewing my case?

Yes. Working does not automatically disqualify you or pause your case. However, if you earn more than $1,550 per month (the 2024 limit for substantial gainful activity), DDS may use that as evidence that you can work. If you are working but earning less than this amount, keep records showing how your condition limits your work.

What if my doctor disagrees with the DDS decision?

Your doctor's opinion matters, but DDS makes the final decision based on all the medical evidence, not just one doctor's view. If you are denied and your doctor believes you are disabled, ask them to write a detailed statement for your appeal. This statement can be powerful evidence at the reconsideration or hearing stage.

Do I need a lawyer during Step 3?

You do not need a lawyer for Step 3 itself, since there is no hearing or back-and-forth with DDS. However, if you are denied and plan to appeal, a lawyer who handles disability cases can significantly improve your chances at reconsideration or a hearing.

What if DDS loses my medical records?

If you suspect DDS never received records from your doctor, contact your doctor's office and ask them to resend them. You can also request a status update from DDS by calling the number on your process receipt notice. Keep your own copies of everything you submit.

How do I know when Step 3 is finished?

You will receive a written decision in the mail — either an approval letter or a denial letter with appeal rights. This letter marks the end of Step 3. If you do not receive a decision within 120 days, you can contact DDS to ask for a status update.