• 07
  • October
    2011

Not a day goes by without another reminder of the dire economic situation facing Americans. Incomes are down and unemployment is up. These tough economic times are having a major impact on the financial safety net millions of injured Americans rely on: the government trust fund that bankrolls the Social Security Disability Insurance (SSDI) program.

In 2010, SSDI paid 13.5 million disabled Americans a total of $126 billion in benefits with just under $100 million going to residents of North Carolina. Unfortunately, some experts predict that SSDI may run out of money by 2017.

Reasons Behind SSDI's Possible Demise

At the heart of SSDI's uncertain future is simply more demand and less supply. The number of applications has increased by 50 percent over the past 10 years with a total of 3.3 million Americans expected to apply this year - that's 1 million more than a decade ago. More people are out of work and unable to find new jobs, leading more people to turn to Social Security for assistance.

A decrease in payroll taxes collected also means less money to fund Social Security. Because Americans are living longer, more people than ever qualify for SSDI benefits. But it's not just the elderly; anyone who qualifies can get full disability benefits, including Medicare, before retirement age.

More applications and less money to go around have caused an ever-increasing backlog and longer wait times before final qualification decisions are made.

What Can Save SSDI?

One possible stopgap measure to save SSDI would be for Congress to reallocate Social Security retirement funds to the disability program. Congress took such action in 1994. But, even this step would only keep the disability program funded until 2036.

Congress could also crack down on improper overpayments to recipients, which would save approximately $12 billion in the next 10 years.

Is It More Difficult Now to Qualify?

Qualifying for disability benefits has been and always will be a complex and time-consuming task. On average, roughly two-thirds of first-time applicants' claims are rejected. And the entire process - from initial application to resolution of any appeals - can take more than two years.

With all the uncertainties over Social Security's future, now more than ever it's imperative to seek the advice of a professional why applying for disability benefits.

Source: Social Security disability on verge of insolvency