• 06
  • January
    2012

Through its Social Security Disability Income (SSDI) and Supplemental Security Income (SSI) programs, the Social Security Administration (SSA) is designed to provide support both financially and in health benefits to Americans who are unable to work. However, actuarial estimates project the SSA, which according to the Wall Street Journal is scheduled to provide 10.6 million Americans with disability benefits worth approximately $130 billion this year, will pay out all of its reserve funds by 2017. If the SSA drains its funds, it would be devastating to the millions of Americans who currently or will depend on SSA benefits to make ends meet.

In order to help ensure that the Americans who depend on its services receive the benefits that they need, the SSA has commissioned the Administrative Conference of the United States to review the SSA's disability system and provide recommendations by late 2012.

Harold Krent, lead researcher for the study and dean of Chicago-Kent College of Law, was quoted by the Wall Street Journal as stating, "It's healthy, when something appears not to be ideal, to get some fresh eyes to see if there can be improvements."

One of the issues that the study will focus on is the disparity between judges who either deny a large number of claims or approve a large number of claims. The Wall Street Journal reports that on average, administrative law judges approve nearly 60 percent of claims; however, one judge last year approved only 13 percent of claims, while another approved 99 percent of claims. While these two judges appear to be outliers, the concern is that many legitimate claims for benefits are being denied, while a large number of people are being approved for benefits when they should not be, which takes much needed funding away from those with legitimate claims for SSA benefits.

The study's recommendations are non-binding on the SSA, but could provide the SSA with much needed information to help ensure the longevity of its programs and help those who truly need benefits receive them.

Source: Wall Street Journal, "Disability-Benefits System Faces Review," Damian Paletta, 12/15/11.