Why Are Disability Claims Growing And Social Security Funding Shrinking?

It’s no secret that the number of people applying for Social Security Disability benefits has been rising. We can see signs of this rise through the problems the Social Security Administration (SSA) is having as it tries to fund Social Security Disability insurance (SSDI). Handling these problems has left lawmakers befuddled, but a new study may have found some answers.

Are Disability Claims Growing Out of Control?

In 2015, Congress passed the Bipartisan Budget Act, which took money out of the Social Security retirement fund to save the disability fund. This prompted lawmakers to scrutinize how SSDI lost so much money. They found part of the answer by looking at how many people were enrolled in the program.

In 1990, only 2.5 percent of the working-age population was enrolled in SSDI, but in 2015 that percentage increased to 5.2. The disability fund was incapable of handling the expansion. This is a serious concern considering that waitlists for evaluation are getting longer, and federal funding is getting tighter. So, why were these numbers increasing?

Many experts pointed to the increased number of women joining the workforce and the higher population of workers aging out of their jobs, but one researcher has another reason. David Autor—an economist from MIT—says the increase is due to thinning job prospects. He looked at the Appalachia region, where SSDI enrollment rates are highest, and made a discovery.

How Did the Economy Affect SSDI Enrollment?

Many of the employers in the Appalachia area had moved jobs from the U.S. to China and Mexico. This change in the economy reduced the amount of nonlabor-intensive positions available. That means that as people aged out of labor-intensive jobs, there were no desk jobs to be had. That may have sent them to the SSDI rolls early, which left them unable to work the jobs available where they lived.

Could this be a contributing factor to SSDI’s budget problems? Is there solution on the horizon? Stick with your Tulsa disability attorneys as we monitor the situation. You can also tell us what you think by visiting our Twitter and Facebook pages.

Categories

    I didn't think there was a caring professional considerate attorney firm on the planet, but Troutman & Troutman proved me wrong. From the receptionist to the legal assistance to the attorney and more they were exceptional people.

    - Robert S.

    They did a fantastic job getting everything gathered up and getting the trial done as quickly as possible. Anytime I had a question they were patient and help me understand what was going on. Especially Christy and Charlie were great.

    - Michael M.

    Steve Troutman was able to get my short-term and long-term disability for me. Then Erin another lawyer for their firm got my Social security disability for me. Great people.

    - Billy S.

    Mr. Troutman walked me through the entire process. Heather was available each time I called, answered all my crazy questions, and helped me fill out forms along the way. I was never treated like I was wasting time.

    - Julia C.

    Erin and Keith were fabulous! They were compassionate, helpful, and very responsive! They made the process very smooth and painless every step of the way.

    - Valerie W.

We Are Here to Help 

Free & Confidential Consultations
  • Please enter your first name.
  • Please enter your last name.
  • Please enter your phone number.
    This isn't a valid phone number.
  • Please enter your email address.
    This isn't a valid email address.
  • Please make a selection.
  • Please enter a message.