Social Security Entitlement Reform

According to Fox Business, the Social Security Disability Program could be negatively impacted as soon as 2015. Adding to more entitlement troubles, Social Security may run out of funds by 2037 and Medicare may only have enough to survive through 2029.

The Social Security Disability Program fund was set up in 1957 for workers who could no longer work due to injury or illness. The fund receives money through payroll taxes and Federal Insurance Contributions Act. In four years the fund is expected to pay out more than $150 but may take in only about $130 billion. Some of its struggles to collect more money may be due to high unemployment rates and more claims of disability.

More than ten million people joined the program last year, an increase of about half a million since 2009.

Claimants enroll in SSDI based on medical opinions and medical records. The Wall Street Journal claims the program’s high enrollment numbers could hurt the fund. In Puerto Rico, 63% of applicants are approved to receive SSDI benefits and 59% claimants have been approved in New Jersey and Wyoming, according to the Journal.

The Republicans believe entitlement reform is necessary as programs such as SSDI have high approval rates and some believe not all claimants deserve to receive benefits.


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