Federal Program Leaves Disabled Facing Benefit Cuts
Some 14 million disabled Americans face drastic benefit cuts of nearly 20 percent by 2016. Recent numbers indicate that the Social Security Disability Insurance Program will run out of money within in the next year, without help from lawmakers.
While there has been a lot of talk about issuing reforms to help offset lack of funding, not much has happened. The Social Security Administration announced last week that they are seeking public opinion about how to implement new standards that factor technology, age, education and work experience to help determine eligibility.
Social Security Disability
The Social Security Disability Insurance program appeared 60 years ago, the product of lawmakers aiming to provide financial security for individuals who are unable to work do a disability. Changes to the federal program in 1978, included the addition of non-medical factors including age, lack of education and the inability to speak English. Currently, some 43 percent of individuals receiving benefits meet these newer criteria.
Senator James Lankford, a Republican from Oklahoma released his opinion on the issue saying, “The SSDI program was designed as a safety net to protect the most vulnerable in our society, those who cannot work due to a disability. However, over time, the program has been fraught with inaccuracies and fraud. “
Federal employees, among others, may feel the burn next year if lawmakers pass a tax increase to help replenish the program.
New Technology may equal No Benefits
Lankford argued that to help offset the costs that lawmakers need to consider new technology. Because the crux of this particular federal program is that recipients must be unable to work in any industry, Lankford said that some individuals currently receiving benefits might not qualify anymore.
In her opinion piece, Lankford argued, “The statutory requirement to qualify for disability insurance is that a person cannot fulfill any job in the economy… It is time for a major overhaul of the disability system and a renewed focus on the disabled.”
Lankford went on to offer several suggestions that could help save the federal benefits program money and help prevent more tax burdens on American employees. Suggestions included:
- Prevent individuals from taking the earned income tax credit or unemployment benefits while receiving Social Security disability. The argument here is that disability insurance is for those who cannot work and earned income tax credit is for those who do work.
- Streamline qualification process and maintain same qualification standards from original appeal to judicial appeal to prevent unqualified individuals from receiving benefits.
- Upgrade the vocational grid of jobs available in the U.S. This grid is roughly 40 years old. Changing technology and new industries may have opened new opportunities to individuals who otherwise would not be able to work. This could reduce the number or qualified individuals.
Lankford argued that new technology should be a consideration when determining whether an individual qualified for disability benefits:
“Because of technological advances, many more people today can perform remote, mobile or technology-based jobs that could not be done decades ago. Additionally, advances in treatments and therapies have improved the quality of life for Americans with medical conditions. “
If leaders do not figure out a way to fund this Federal program (or reduce costs), federal employees will be among those who could see a smaller paycheck due to more Social Security taxes.
