Have Workers’ Comp Cuts Led To A Rise In SSDI Beneficiaries?

The Center for Economic and Policy Research (CEPR) recently had an interesting report that indicated state cuts to workers’ compensation plans across the country have lead to an increase in the number of Social Security Disability Insurance (SSDI) recipients.

According to the group, the number of people receiving SSDI has gone from 25 per thousand in 1990, to 59 per thousand in 2014. It explains that the rise has been mostly caused by demographic factors, like an aging workforce and more female employees, who have been able to earn work credits. Additionally, the CEPR says, “part of this increase is likely due to changes in state workers’ compensation laws that shift costs and coverage to public programs like [SSDI].”

By analyzing data from the National Council on Compensation Insurance (NCCI), the National Academy of Social Insurance (NASI) and the Social Security Administration (SSA), officials determined that in many areas, “there is a strong relationship between the decline in state level [workers’ compensation] beneficiaries and rise in new [SSDI] awards.”

In some states, including Oklahoma and Texas, there have been overhauls in workers’ compensation systems that allow businesses to opt out. The CEPR piece estimates that more than one-fifth of the rise in SSDI claims can be explained by cuts to workers’ compensation plans throughout the U.S.

“As a result of tighter state eligibility requirements, workers who might have otherwise been getting workers’ compensation for work-related injuries are now turning to disability insurance,” Dean Baker of the CEPR said in a press release.

To read the CEPR report, you can click on the source link below.

Are You Unable to Work Due To Injuries?

Last December, we blogged about workers’ compensation and SSDI—if you have questions about collecting benefits, contact our Tulsa lawyers.

As the CEPR reports, many states have overhauled their workers’ compensation systems, which have greatly reduced employee benefits. This has led to more people collecting SSDI alone, or both SSDI and limited workers’ compensation at the same time. If you are an injured worker, the SSA usually takes into account any workers’ compensation you may receive when it comes to deciding how SSDI benefits are awarded through what is called an “offset”.

Through working with our Tulsa disability attorneys, you may be able to reduce the negative financial consequences of workers’ compensation on SSDI benefits. Find out how by calling (918) 265-1404.

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

Source: http://cepr.net/documents/rising-disability-payments-2015-10.pdf


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