Tulsa Disability Attorney: Budget Proposal Could Lead To Small Reduction In Benefits

The Associated Press reported that President Barack Obama’s $3.77 trillion budget proposal for 2014 could change the way benefits are calculated for people who receive Social Security Disability Insurance (SSDI) or Supplemental Security Income (SSI).

According to the AP, Obama is proposing a change to the consumer price index (CPI), which is used to account for the rising costs of consumer goods like food and household products. The change is being billed “chained CPI.”

The AP reported that the changes were an attempted compromise by the Obama administration to House Republicans, as many GOP leaders have asked for changes to so-called “entitlements” in an effort to reduce the country’s deficit. The change is reportedly a 0.3 percent reduction to the yearly cost-of-living adjustment associated with SSDI payments.

“What we’re concerned about is that beneficiaries would be forced to make very painful decisions, choosing to take medications or buy that bag of groceries,” said T.J. Sutcliffe, an advocate with the Arc told the disability news website Disability Scoop. “Cuts (under chained CPI) are cumulative so they start out low, but they add up quickly.”

In the video above, former United States Secretary of Labor Robert Reich discusses chained CPI and its impact on Social Security.

We are also concerned about the cuts. A 0.3 percent reduction would amount to one month of benefits over the course of 10 years. Unfortunately, there is no real way to increase monthly benefit payments for people who may be struggling financially. SSDI benefits are based on your payroll tax contributions and your work history.

Do not let this news discourage you from applying for benefits. We will keep up with any ongoing news. If you have questions about applying for disability benefits, contact a Tulsa Social Security Disability attorney. We offer free evaluations of your case, and you may reach us by phone at (918) 265-1404. Contact us today to learn more about your rights.

Troutman & Troutman, P.C. – Tulsa Social Security Disability lawyers


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