Lawmakers Face Loss of Social Security Disability Insurance in 2016 without More Funds

While Social Security Disability Insurance is a small part of Social Security overall, the program currently faces the worst problem – in 2016, the program will face such a massive budget shortfall that it will be forced to cut down on payments to disabled workers and their dependents.

The annual Social Security and Medicare Board of Trustees report stated clearly and without doubt that Social Security Disability Insurance faces trust fund depletion by 2016, which is the same year projected in the last Trustees’ report.

“DI cost has exceeded non-interest income since 2005, and the trust fund ratio has declined since peaking in 2003,” the report stated. “While legislation is needed to address all of Social Security’s financial imbalances, the need has become most urgent with respect to the program’s DI component. Lawmakers need to act soon to avoid reduced payments to DI beneficiaries three years from now.

“The projected 75-year actuarial deficit for the combined Old-Age and Survivors Insurance and Disability Insurance (OASDI) Trust Funds is 2.72 percent of taxable payroll, up from 2.67 percent projected in last year’s report,” the Trustees’ report continued. “This deficit amounts to 21 percent of program non-interest income or 17 percent of program cost.”

The Social Security Disability Insurance portion of the report concluded that, while the OASDI program fails the long-range financial solvency tests, it does satisfy the 10-year, or “short-range” test of financial adequacy.

The Trustees’ report also discussed Medicare trust funds, which they believe will be the next program to face depletion after the OASDI / Social Security Disability Insurance programs.

Under current law, the two trust funds cannot be mixed, so combining allocated funds would not work. Congress and the president must take quick and drastic steps to re-fund Social Security Disability Insurance.

Last year, Social Security Disability Insurance supported 11 million disabled workers and their dependents. Recent information released by the Social Security Administration suggests that more Americans than ever are on Social Security Disability Insurance.

Do I Qualify for Social Security Disability Benefits?

1. Is your condition “severe”?

Your condition must interfere with basic work-related activities such as sitting, standing, walking, concentrating, or maintaining persistence and pace for your claim to be considered.

If your condition does not interfere with the above work-related activities, Social Security will find that you are not disabled. If your condition does interfere with basic work-related activities, you should consider applying for social security disability.

2. Is your condition found in the list of disabling conditions?

For each of the major body systems, Social Security maintains a list of medical conditions that are so severe, being diagnosed with one automatically qualifies you for disability. If your condition is not on the list, Social Security will have to decide if it is of equal severity to a medical condition that is on the list. If it is, you will be found disabled.

3. Can you do the work you did previously?

If your condition is severe, but not at the same or equal level of severity as a medical condition on the list, then Social Security must determine if it interferes with your ability to continue working. If it does not, your claim will be denied. If it does, proceed to Step 5.

The Strom Law Firm Can Help with Social Security Disability Claims

Applying for Social Security Disability Insurance can be complex.  However, we understand that you need your benefits and we will put our years of experience to work for you to ensure that you have the representation necessary to actively pursue your claim.  Call the attorneys at the Strom Law Firm today to discuss your Social Security Disability or Supplemental Security Income case today.  We will be glad to discuss any questions you may have during our free, confidential consultation.  Call the experienced attorneys at the Strom Law Firm at(803)252-4800.